Mortgage timing

Dear Moneyguru,

Is there a way to find the ideal timing for getting a mortgage?

Thanks in advance for your advice

Hi there,

The right time to get a mortgage is when interest rates are at their lowest. However, it is not possible to accurately predict how interest rates will develop.

In the case of a LIBOR-based mortgage, timing is less important because your mortgage rate will be change regularly in keeping with along with the London Interbank Offered Rate (LIBOR).

When you get a fixed rate mortgage, timing is far more important because you lock in the interest rate at the start of the mortgage term and continue to pay the same amount of interest until the term ends.

A number of interest rate predictions are available from banks and other institutions, but these should be looked at as guides rather than as fact. There is no guarantee that rates will develop as per the predictions.

If you expect rates to fall over the coming months, it may be worth waiting before mortgaging your home. You can also get a LIBOR-based mortgage which will become cheaper if market rates drop.

If you expect mortgage rates to climb, you can get a fixed rate mortgage to lock in the current low rates.

If you only want to get a mortgage in several months or in a year, a forward mortgage may work well for you because this type of mortgage lets you lock in interest rates in advance. The drawback is that you pay a premium for this benefit.

You can compare the guide interest rates of all Swiss mortgages based on the type of mortgage you want and your individual specifications using the unbiased and interactive mortgage comparison on moneyland.ch. You can also request quotes free of charge.

Best regards from Moneyguru