At least six months before the end of the term you should consider whether and how to repay or extend your mortgage. Information on early repayment of the mortgage, including tips on how the repayment of the loan works better, advice on prepayment penalties. What should I watch out for if my mortgage is replaced by a third party (another bank, insurance, etc.)? Buy back your mortgage and change bank? Here's how you can redeem a mortgage.
Replace a mortgage: 10 tips
Moving to a new mortgage lender is easier than you think and can save you several thousand francs. Ten tips for replacing a mortgage. At least six months before the end of the contract, you should consider whether and how to repay or extend your mortgage. First of all, if you stay with your bank without making comparisons, you often pay over a thousand francs in the following years.
Depending on whether you have a fixed mortgage, a Libor mortgage or a variable rate mortgage, there are different rules regarding refinancing. If you want to transfer the fixed-rate mortgage to another mortgage or insurance company before the expiry date, you pay a heavy penalty - also known as a penalty for early repayment. Since tens of thousands of francs are more the norm than the exceptions, a premature retreat makes little sense.
The same applies to Libor mortgages: During the minimum term - usually 2 to 5 years - you can transfer the mortgage with great effort to another provider. In many banks, however, an internal transfer to a fixed mortgage is possible. Changing the provider is easier with a variable mortgage, since this does not include minimum contract terms, but only a notice period of 3 to 6 months.
The variable mortgages are therefore hardly used anywhere in the world. Of course, apply to all models: Think about whether and how you want to erase or extend the mortgage at least six months before expiring your mortgage loan. Note: Some providers convert their clients' mortgages into expensive mortgages at the end of the contract period if they do not cancel or replenish them on time.
You should therefore clarify the deadlines in advance (note "notice periods" in the mortgage contract). Do not make it easier for your bank and become active. In most cases, a third party offers more favorable conditions. In this way, willing borrowers can quickly save several thousand francs a year! It is advisable to check the interest rates on the network, to receive at least three specific offers for your application, taking into account both credit institutions and insurance companies.
Even more on the subject:
Ideally, you know what your new mortgage should look like before you ask for quotes. Otherwise, although you have many suggestions from the bank and insurance that would replace your mortgage, you can not understand them. It is also important that you receive all bids on the same day or request the terms on the same date.
With which offer (fixed, loan or variable mortgage) do you want to repay your mortgage? If you want your mortgage with several parts or watch our video briefing on the current theme. You want to combine different products, eg a fixed mortgage with a Libor mortgage? The mortgage should fit like a tailor-made suit. This is about your cash!
On this page you will find a list of current mortgage lenders around the world. When replacing your mortgage you should consider the sum of the new loan. Find out about the amortization of a mortgage here. You can repay your mortgage some time before the end of the contract term.
Many banks and insurance companies offer the option of a so-called forward mortgage: this allows you to hedge the current interest rates up to two years in advance. Switching to a new mortgage lender is easier than you think. In return, he will transfer the cash so that you can repay the mortgage.
Some providers charge a lump sum of several hundred francs (typically between 100 and 500 francs) - even if they extend the mortgage at the house bank or the insurance company itself. Any costs are listed in the mortgage contract. Unfortunately, our refiners often find that they are tied to their former lender by carving the mortgage into multiple maturities until the end of the oldest maturity tranche:
Consult independent experts if you want to know about the proposed banking strategy of your advisor or if you want to know more generally. Above all, you should think about what happens to your household or property if some or all of your income is lost through illness or death.
Here is our general mortgage calculator. With us you not only receive current interest rate forecasts, but also evaluations and advice on our advisory focus on mortgage lending, pension solutions and investments.