An analysis of the main players from 2015 to 2020 by MoneyPark.
State of the mortgage market
Over the past five years, the Swiss mortgage market has grown by almost CHF 165 billion to reach around CHF 1,138 billion (+ 17%). In 2020, this figure increased by nearly CHF 37 billion (+ 3.4%). The pandemic has therefore not had a negative effect on the growth and development of the mortgage market in Switzerland. This growth is mainly due to the increase in real estate prices, with the ownership rate stagnating for years at almost 40%.
Banks alone dominate 94% of the Swiss mortgage market, although a growing share of these assets is generated through third-party distribution channels and includes, in particular, mortgage renewal, which is disproportionately larger than initial funding / new funding. Cantonal banks occupy the first place with a volume of more than 401 billion francs, followed by the big banks, which manage nearly 296 billion francs of mortgage volume. While banks remain in first place, pension funds experience the highest percentage growth. MoneyPark experts estimate that this group of providers recorded an increase of more than 16% in 2020. It is all the more remarkable that pension funds have no or very few distribution channels of their own and benefit, in to a large extent, from the professional intermediary sector in particular.
Distribution channel of intermediaries
Mortgage intermediaries, which did not exist in Switzerland before 2012, have already negotiated between seven and eight billion francs in 2020. Calculated on the basis of an annual market volume of 180 billion francs, the market share of intermediaries now represents more of 4%. In Germany, for example, almost half of mortgage activity is carried out by intermediaries, in Great Britain, this share would rise to 70%, according to a study by McKinsey.
In Switzerland, the field of mortgage intermediaries exists only as an independent and professionally institutionalized segment since the founding of MoneyPark at the end of 2012. With a volume of 3.4 billion francs, MoneyPark has advised and negotiated by far the largest number of mortgages in 2020. This success has stimulated competition. last year even UBS got into this business with its own mortgage brokerage platform.
Many mortgage brokers do not publish details of their volumes. However, MoneyPark experts estimate that between seven and eight billion francs in mortgages were concluded via an intermediary in 2020 across Switzerland.
Perspectives
Banks recorded growth of around 1% in the first quarter of 2021. This increase therefore follows the trend of recent years. Growth of three to four percent is also forecast for 2021, a figure comparable to previous years. Alternative investors, such as pension funds looking for attractive investment opportunities, will gain market volume.
Download the full study (pdf, French, 9 pages)
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