Research warns homeowners: The best offer is about more than the interest rate: Why getting a Saron mortgage still carries risk

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Good news for homeowners with fixed-rate mortgages: Fixed-rate mortgages with terms of up to ten years remain cheaper than Sarong mortgages for now, according to a recently published analysis by Moneypark.

Since November of last year, the benchmark interest rate on ten-year fixed-rate mortgages has been an average of 13 basis points lower than on Saron mortgages. Half of the mortgage providers surveyed by the comparison platform believe this will continue for another quarter or two.

When will the next interest rate move come?

As long as the Swiss National Bank (SNB) leaves its base interest rate at 1.75 percent, benchmark rates for mortgage interest rates will not change much. If the SNB then turns the screw on interest rates and cuts it by 25 basis points, Saron mortgages are likely to become more attractive again. But that probably won’t be the case until June or September.

Moneypark writes that two-thirds of mortgage lenders expect stable capital market interest rates in the next three months and predict a decrease in interest rates for all periods in the third quarter alone.

Inflation continues to fuel the biggest uncertainty: But inflation fell to a lower level of 1.2 percent in February and is therefore within the SNB’s target range.

Competition flared up

Historically, interest rates remain at very low levels. However, according to the comparison portal Saron mortgage loans remain risky. However, they can be useful for some mortgage holders who need more flexibility (for example, when selling a property). Depending on the situation, a mix of both mortgage models would also make sense.

But it’s not just the interest that matters when it comes to a mortgage: factors such as equity, qualifying income elements and depreciation liability also play an important role.

More competition has reignited between mortgage providers since this year. According to Moneypark, there are always providers that significantly undercut the market average. It can be helpful to compare providers.

Source :Blick