The big checklist before your mortgage ends: What you need to know about financing your home

6 months before expiration: consider strategy

• Mortgage amount: Do you want to pay off part of the mortgage, and if so, how much? This may be beneficial in reducing the interest burden, but the money is then blocked at home.
• Danger: It is often not possible to increase the mortgage again later, especially at retirement age. Therefore, you should plan for adequate reserves, especially if major renovations are required, such as a new heating system.
• There is basically one Pay back This is recommended if the money remains unused in the savings account and earns almost no interest.
• Besides cash, you can also use money from the pension fund and column 3a. If this situation arises: Get advice about the consequences of withdrawal and how to proceed.
• Duration of mortgage: How long do you want to keep the house? If you’re already thinking of moving to a smaller home in five years, a 10-year mortgage doesn’t make sense. Match the mortgage length to your plans.
• Mortgage type: How do you think interest rates will develop? No one, not even highly paid financial professionals, can say for sure. But you have to make an instinctive decision for yourself. If you expect mortgage interest rates to rise, a fixed-rate mortgage with a fixed interest rate is the right choice. The same applies if budget security is very important to you. If you expect interest rates to be stable or falling, you may be better off opting for a Saron mortgage; The interest rate usually adjusts every three months.

5 months before expiration date: Cancel and prepare file

• Check your previous loan agreement to see if it is available. when you have to cancel. Depending on the bank, this is also required for fixed-rate mortgages with fixed expiration dates. If yes: terminate the contract in time.
• Prepare a fileso potential new lenders can review your situation. Order an up-to-date land registry and debt enforcement statement. Compile plans and current photographs of the apartment or house, create an overview of assets (including pension fund and column 3a), copy financially relevant documents (tax return, salary statement).

4 months before expiry date: Get an offer

• Contact at least three mortgage lenders and send them the file. Ask for special quotes and clarify open questions.
• Not only banks but also Life insurance and retirement funds – including yours. If this effort is too much for you, you can call a mortgage broker (such as Hypoplus, Kredite.ch, Moneypark or others) who will negotiate with the banks. But you still need to prepare a file.
• Make an appointment Mention that you are in the process of obtaining competitive offers with your previous bank.

3 months before expiry date: Negotiate

• Don’t accept anything too quickly: Even an unsigned verbal commitment constitutes a valid mortgage agreement.
• Review the current offers and clarify your questions. Compare not only the most important highlights of the mortgage (type, term, interest rate), but also the general conditions and detailed information.
• Have any unclear points about the contract, such as the use of interest rates, explained to you. Also consider fees and termination conditions; All of these points are negotiable.
• Try to get better conditions, for example, by offering to transfer other accounts to this bank. Don’t be afraid to compare offers with each other: it’s about your apartment, it’s about your money.
• Pay attention to the mortgage option to be staggered by several slices. Banks like to promote this with the argument that it reduces the risk of having to renew the mortgage at maximum interest rates. However: Once the first tranche expires it is very difficult to transfer it to another provider. You’re effectively stuck with your previous bank.

1 month before expiration date: Decide

• Choose the option that appeals to you the most and that you feel comfortable with.
• If you change: Decide with the new provider whether they will undertake all the formalities regarding payment, mortgage note and title registration.
• Chill the champagne; You probably saved a lot of money!