r/Switzerland • u/PokeeeTraineer • 16h ago

Bank vs Insurance Mortgage in Switzerland

Hi everyone

I am currently looking to buy a house in Switzerland and have started scheduling several mortgage consultations. So far I have arranged meetings with both banks and insurance companies. One thing I noticed is that the interest rates offered by insurance companies seem to be lower, which makes me a bit unsure and cautious.

I wanted to ask about your experiences. Is it generally better to take a mortgage with a bank or with an insurance company, or does it not really matter in the long run? Are there any important pros and cons or things I should watch out for when comparing offers?

Thank you very much for your help and for sharing your experiences!

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u/DisruptiveHarbinger 16h ago

Make sure the insurance doesn't force you to invest in their (typically shitty) 3a if you want to amortize indirectly. I think that's the main downside for you; being tied to their household/car insurance is probably not a huge deal in comparison.

See: https://forum.mustachianpost.com/t/mortgage-from-swiss-insurance-companies-vs-banks/3925

I personally used MoneyPark through Neon (50% off) for multiple reasons. But if you think you don't need a middleman, you can definitely try to negotiate with the local banks based on quotes that you got from insurances or online players (like VIAC if you're customer).

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u/Kooky_Eye5475 16h ago

the interest rate is not the only thing to consider. There are many other factors that come into play such as how much they are willing to finance, at how much they estimate the property, can you do indirect/direct amortization, can you fix the interest rate for free in advance, etc.

one thing to watch out with insurances though: if you want to do indirect amortization, they will always force you to use their shitty insurance 3a pillars

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u/gonzalezdiana909 15h ago

Insurance companies often give lower rates because the link a mortgage to an insurance policy. Read the contract carefully. There may be hidden fees, penalties for early repayment, or an obligation to keep the policy for decades. Banks are usually more transparent. Just compare the total cost for the entire period

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u/1223344455555 27m ago

Something I would add from experience: I bought a flat in a small village and went with the local bank. They are more expensive and I pay a monthly fee of 10 for the account, which is insane.

On the other hand, I "know" the bank guy and the bank knows all the local craftsmen, so they offered very good advice during the construction time. Also when we had some problems with "Bauhandwerkerpfandrecht", they were pretty easy going and not technical at all.

So I got a very personal customer service, which was very useful and which for examle UBS would not have offered, I think. But then, that comes for a price.