Mortgage loan

News from DL MoneyPark and information on the financial market and Swiss romande real estate

Author : Kristen

LIBOR

This form of mortgage credit is directly linked to the European monetary market. Based on the LIBOR (London interbank offered rate), the rate is adopted every 3, 6 or 12 months. The bank adds a margin to this rate that is calculated for each individual client. Some financial institutions offer insurance against the rise in rates by means of derivatives.

Duration: fixed at 3, 6 or 12 months

Termination: at the end of the contract

At this point, you are free to choose the type of rate or to change financial institution (watch out for potential framework agreements) with advance notice, generally one month ahead of time. During the loan duration, you can also terminate your loan, but the financial institution will require a penalty that can be the total amount of interest until the expiration of the rate or framework agreement. In this case, negotiation and calculation are necessary.

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Articles on mortgage loans

 

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