Mortgage loans are no longer given only by banks, and insurance companies and pension funds are increasingly among the suppliers. There, these loans are usually cheaper to have, as one published on Friday analysis of mortgage broker Moneypark shows.
In Switzerland, banks are still leading in the allocation of mortgages. With decades of inventory, they dominate the market and, according to Moneypark, 94 percent of the total cake holds. At the end of 2018, it had a volume of 1.064 billion Swiss francs.
However, insurance companies and pension funds have increased their mortgage lending activities in recent years. In times of persistent low interest rates and in search of safe and attractive returns, they are increasingly investing in this business and scoring in the market with favorable conditions.
More expensive bank mortgages
Comparison of ten-year fixed-rate loans, the undisputed favorite of the Swiss mortgage market. Currently, mortgage loans on banks cost an average of 1
The gap is even greater than that offered by the pension funds: Bank customers have to pay an average of 20 percentage points more for ten-year fixed-rate loans Year to pay interest. Here, however, the calculations are only based on the data in the last six months. For a further decreasing evaluation, the available amount of data is for small, motivated Moneypark.
In the entire mortgage market, ie also outside the Moneypark universe, the differences should be even greater, one believes with the mortgage loan broker. Because banks benefited from bank customers' inertia in comparing interest rates with other institutions.
Large savings potential
Property owners close a mortgage on insurance or pension funds instead On a bank, according to the announcement, they can save some money. According to Moneypark, savings of CHF 650,000 are over a ten-year fixed rate of CHF 8,850 (insurance) or CHF 13 13,000 (pension fund).
The main reason for these major differences is the Various goals sought by the suppliers in the mortgage loan, noted Moneypark. Although mortgages for banks are core elements of the business model and are subject to strict rules, they are primarily an investment vehicle for insurance companies and pension funds. They would therefore follow less stringent rules that make the supply more expensive.
Created: 14.06.2019, 13:20