Anyone who buys their own home enters into long-term financial obligations. Remember to hedge your investment for various future scenarios.
Holding the key to your own house for the first time – what a moment! These tips will help you to finance your dream property:
You must pay at least 20 percent of the purchase price from your own funds. Savings, securities, assets from the 2nd and 3rd pillars or inheritance advances count as equity. At least 10 percent of this must not come from the occupational pension scheme (2nd pillar). Financing partners such as insurance companies or banks can provide you with the remaining maximum 80 percent of the purchase price as a mortgage.
take interest rate trends into account
Since the beginning of 2022, interest rates on fixed-rate mortgages have been rising again. Depending on the model, most mortgages have a term of several years. If the mortgage expires, the interest rate environment may look very different. Therefore, to be on the safe side, calculate with a mortgage interest rate of 5 percent when planning your long-term budget.
After the mortgage expires, it may be worth switching to a different model or provider. Pay attention to the notice period of your mortgage. Check the product agreement and framework agreement for this. The notice period can be up to six months. By the way: Mobiliar now also offers mortgages.
A useful rule of thumb
Don’t forget to factor in the other costs: the maintenance of the property, ancillary costs and the amortization of the second mortgage. In contrast to the first mortgage, this usually has to be paid off within 15 years or by the time you retire at the latest. As a rule of thumb, the total cost of the property should not exceed one-third of your household’s gross income.
What happens if your income falls later – for example if you have a reduced workload, are unemployed or after retirement? This consideration affects decisions you must make today. An example: If you withdraw pension fund money early to finance home ownership, the benefits will be reduced after retirement. However, if the money is pledged, the benefits remain unchanged and you have this money at your disposal later.
Let us advise you
Financing, provision, insurance – when it comes to home ownership, these three topics belong together and should definitely be coordinated. You should therefore turn to specialists with an eye for the whole picture.
Whatever comes – we support you in everything to do with living.
Mobiliar Bern-West is Nau.ch’s local partner. With this commitment, Mobiliar Bern-West enables local content on Nau.ch
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