You may know my opinion on mortgages. It’s important to me that you don’t have to worry about where the interest rate is every day and that you can sleep well despite a mortgage. For a long time, the ten-year mortgage was the best choice. The motto was to keep interest rates as low as possible for as long as possible. That is no longer the case.
Saron same as fixed-rate mortgage
But first things first. The youngest Mortgage interest survey by “Finanz und Wirtschaft” has shown that rates are falling significantly. A five-year mortgage was 20 basis points cheaper in mid-May than a month ago. For some providers, the rate is less than 2.5%. At the same time, the Saron mortgage, which historically has almost always been better than a fixed-rate mortgage, is rising slightly and will continue to rise. Depending on the bank’s margin, the Saron mortgage is likely to be between 2.1 and 2.4%.
The rate will rise again when the National Bank raises key interest rates. It can be expected that the SNB will rise by 25 basis points in June and that the Saron mortgage will then increase with a slight delay. The good news? Interest rates may well have peaked after that. That means those who have a Saron mortgage need not worry about the burden getting out of hand.
Firm but short is the motto
However, if you want to optimize, you should probably do the following: take out a two- or three-year mortgage now. There is a good chance that you will then be able to do better at times than with a Saron mortgage and then, after the two or three years have elapsed, have the opportunity again to tie yourself in at low interest rates for a whole decade.
Found a mistake?Report now.
2023-05-19 12:33:04
#Opinion #mortgage
– mortgage, now what?
Fixed-rate mortgages are falling significantly. At the same time, the Saron interest rate is rising. Just don’t make a ten-year commitment now.