Helvetia is a quality-oriented, all-lines insurance provider with a tradition going back over 150 years. It is one of the three leading insurance companies in Switzerland. With a mortgage from Helvetia, you can benefit from the following advantages:
Helvetia differentiates between fixed mortgages, adjustable-rate mortgages and the attractive starter mortgage.
The fixed mortgage has a fixed interest rate and is concluded for a fixed term. With it, you can secure yourself today's attractive interest rates for up to 20 years. The fixed mortgage cannot be cancelled or dissolved during its term. There is an exception in the case of a change of ownership.
The adjustable-rate mortgage has a variable interest rate that adjusts to the relevant market conditions. The contract is concluded for an unspecified term and can be terminated subject to a notice period of three months.
For first-time buyers of residential property, Helvetia grants a starter discount of 0.25% for the first three years on the full mortgage amount and on all terms. The starter mortgage is concluded for at least five years. The discount has to be refunded if the minimum term of five years is not adhered to.
Financing your own four walls is a matter of trust – you should therefore consult your personal insurance advisor. We use our many years of experience in mortgage financing to advise you in line with your needs. We work with you to develop a solution that takes into account all aspects of your current life situation and your future plans. Contact us now.
To make you an offer, we need the following details:
As soon as the financing has been successfully reviewed by Helvetia and the contract documents have been legally signed by the borrower, the third-party mortgage can be discharged by Helvetia.
Here, it's important ensure that the commitment to be paid off is terminated correctly in line with the contract terms and that the mortgage titles serving as security can be transferred to Helvetia as the new mortgage creditor. Helvetia will not discharge any mortgages from third-party institutions in tranches.
For the financing of owner-occupied residential properties, Helvetia requires a minimum of 20% of the investment costs or the value of the property in the form of your own funds. At least 10% of this must come from freely available savings.
Another part can be funded through an advance withdrawal from pension fund assets. The more equity you put in, the more comfortable your interest situation. Calculate your financial potential consult our professional Customer Advisors.
You can use pension assets to finance the purchase of your own home: the federal law on the promotion of home ownership permits the use of pension assets from the overall occupational benefit scheme (LOB, 2nd pillar) for the financing of owner-occupied residential property. The level of the maximum withdrawal depends on the age of the pension-holder and the relevant LOB regulation. Information about your vested benefits can be obtained from your employer's employee benefit institution. In the context of an advance withdrawal, the pension fund credit can be used in the form of a pledge for the financing. You yourself decide whether and how you will use the available funds.
You can use the funds from the 3rd pillar in their entirety in the form of cash or as part of a pledge for the purchase of an owner-occupied residential property.
The market value of a property is the value the property can achieve within a reasonable deadline under normal circumstances if sold. This value depends on various factors. The most important of these is the location.
Also taken into account are the size of the plot, the size of the property, the standard of the facilities and the current state of the property. Value-decreasing easements listed in the land register (e.g. right of abode, right of use) are also considered in the valuation.
With small and medium-sized residential properties, Helvetia relies primarily on the valuation method of Wüest and Partner. Larger residential properties, as well as commercial and business properties are valued using the discounted cash flow method or alternative valuation methods.
The viability refers to the relationship between the level of the gross wage and the expenditure for the property, as well as the monthly obligations. The viability is expressed in per cent and at Helvetia must not make up more than one third of the gross salary (maximum 33.4%). The expenditure is comprised of:
The collateral refers to the relationship between the level of the mortgage and the investment costs, and/or the market value of the property. The level of collateral is expressed in per cent. Owner-occupied residential properties (main domicile) are mortgaged at up to 80% of the investment costs or the market value at Helvetia.
Sample calculation: With a property worth CHF 800,000, the buyer basically gets a mortgage of CHF 640,000 and must provide CHF 160,000 of his own funds.
When a property is sold, there is a change of ownership. The existing (fixed) mortgage expires. Corresponding with the mortgage contract concluded, a prepayment penalty applies.
Basically, the fixed mortgages from Helvetia cannot be cancelled (see previous point on this). The only exception here is a change of ownership. In this case a penalty interest rate or a prepayment penalty is due as a result of non-compliance with the fixed mortgage contract concluded. The calculation of this penalty interest is outlined in the contract.
Both alternatives for amortisation have their advantages and disadvantages: from a purely financial perspective, the indirect amortisation is advantageous thanks to the tax deduction it entails.
With the direct amortisation the mortgage debt is effectively reduced by the agreed amortisation payments. The level of the amortisation payments and the repayment cycle (e.g. quarterly or six-monthly) is agreed with the mortgage borrower in advance. With each repayment, the borrower reduces his or her mortgage debt and thus the interest burden.
With indirect amortisation the borrower does not make any direct repayments of the mortgage debt. Instead, the borrower saves the agreed amortisation amount in a pillar 3a pension account, which is pledged to the bank as security for the mortgage. Thus the borrower’s pension assets grow, while the mortgage stays at the original level. With indirect amortisation the borrower builds up a (pledged) pension and benefits from tax privileges on pension savings at the same time.