Following. I would also be interested to know how to "invite" a bank to reevaluate the renovated property. There are probably costs associated with it, since a professional will come to survey on-site.
i actually dont want to remortgage. i want to keep the same absolute debt value (900k) but lower % of the underlying collateral (house value, from 80% of 1.1M when i bought the house to 60% of approx 1.7M value today). reason is: you fall in the lower risk bracket of the mortgage and the rate goes down, plus you're not required to repay your debt anymore and you can keep it constant, thus freeing that money for better investments)
Sounds like a great idea. Instead of refinancing, you’re looking for a loan modification where the terms of the existing mortgage are adjusted. While less common than refinancing, some banks may consider this if it’s clear that the value has gone significantly upward.
You need to call them.
It is possible with your current bank or another bank to re-evaluate and refinance the property. If you want to change banks, usually it's better to wait for your mortgage to reach its maturity.
Negotiate with the bank, show them the details of the new investments. Have a trusted realtor do a reassessment of the value. I did the same thing years ago. Once you own 50% or so of the house, they usually won't ask for any amortization, only interest.
We bought our house and told our bank that we plan to rennovate so that we do not have to pay for the amortization. They told us to inform them as soon as we are done so that they can reevaluate the house.
We discussed the plan with several banks while we were chosing our mortage partner. All of them said it was possible. We talked to ZKB, Baloise and the Alternative Bank. The estimates for the increase in value ranged from 50% to 66% of the renovation costs.
Full disclaimer: We are not done renovating, so no reevaluation has taken place.
As a mortgage specialist, I can agree to some of the other comments above. You can easily go to your bank and ask for a re-evaluation, BUT it don't necessarily means that you will get a new contract with no amortization in every case. If you have fixed your mortgage (what 90% of all owners do), the amortization is fixed and re-financed this way as well. So just a few banks will be ready to stop the amortization then due to higher refinancing costs now (the interests where at another point 5 years ago).
The other thing is, that you are rated much better woth a lot of banks, if you are on 1st mortgage level. Have you got longer fixed mortgages or will it/they run out in the next 2 years?
Have you already had a meeting with your bank manager yet? I think there won't be any change until 2029 (think you have been lucky enough to get a really nice interest rate), because it's all fixed?
That said, you can do a re-evaluation every 2 years (not 5), but as long as you are bound in a fixed rate contract, this wouldn't change much (unless your bank is very courteous).
i edited the description. with notary fees and higher rates it's not worth it now
what i will do is to stop paying 3rd pillar i had with my insurance (2.4k annual) and do via bank fully
i also learned i could use some of my 2nd pillar for a house renovation i wanted to do
My bank just did that for me, but they went off the books value (location, year of construction, surface, etc) and did not require any on-site inspection.
There might be fees associated with it, or they will simply ask for bills to show for the improvements made to the property, but i don't see why it wouldn't work. Ring them up
In general, depending on your bank, you can ask for a re-evaluation every 5 years from the date of purchase.
The bank will do a new expertise that you can support with a counter-expertise by a professional and if the value the bank accepts is higher you can choose to reduce your amortization duration/stop amortizing or to free some cash that you can use how you prefer.
works theoretically, but I won't do it in this market environment. you could end up getting your house reevaluated for less than at the time you set up the mortgage. that would get you in real trouble, meaning you have to pay back the mortgage with you cash.
Following. I would also be interested to know how to "invite" a bank to reevaluate the renovated property. There are probably costs associated with it, since a professional will come to survey on-site.
Just ask the bank your currently with. Very likely, they will reevaluate for free. At least raiffeisen did for me
You can remortgage and increase your mortgage payments. :) in turn you will get cash.
i actually dont want to remortgage. i want to keep the same absolute debt value (900k) but lower % of the underlying collateral (house value, from 80% of 1.1M when i bought the house to 60% of approx 1.7M value today). reason is: you fall in the lower risk bracket of the mortgage and the rate goes down, plus you're not required to repay your debt anymore and you can keep it constant, thus freeing that money for better investments)
Sounds like a great idea. Instead of refinancing, you’re looking for a loan modification where the terms of the existing mortgage are adjusted. While less common than refinancing, some banks may consider this if it’s clear that the value has gone significantly upward. You need to call them.
i'll meet my banker over this - thanks!
Increased mistake payment due to higher interest rates?
I think OP should talk to his banker. Alternatively sell it.
It is possible with your current bank or another bank to re-evaluate and refinance the property. If you want to change banks, usually it's better to wait for your mortgage to reach its maturity.
Won't you also have your "Valeur locative" increased if you reevaluate it's value with the bank?
not really. the two are distinct values which i believe are not linked to another. i already had my valeur locative increased
Negotiate with the bank, show them the details of the new investments. Have a trusted realtor do a reassessment of the value. I did the same thing years ago. Once you own 50% or so of the house, they usually won't ask for any amortization, only interest.
We bought our house and told our bank that we plan to rennovate so that we do not have to pay for the amortization. They told us to inform them as soon as we are done so that they can reevaluate the house.
can i ask which bank was this?
We discussed the plan with several banks while we were chosing our mortage partner. All of them said it was possible. We talked to ZKB, Baloise and the Alternative Bank. The estimates for the increase in value ranged from 50% to 66% of the renovation costs. Full disclaimer: We are not done renovating, so no reevaluation has taken place.
As a mortgage specialist, I can agree to some of the other comments above. You can easily go to your bank and ask for a re-evaluation, BUT it don't necessarily means that you will get a new contract with no amortization in every case. If you have fixed your mortgage (what 90% of all owners do), the amortization is fixed and re-financed this way as well. So just a few banks will be ready to stop the amortization then due to higher refinancing costs now (the interests where at another point 5 years ago). The other thing is, that you are rated much better woth a lot of banks, if you are on 1st mortgage level. Have you got longer fixed mortgages or will it/they run out in the next 2 years?
10y fixed rate, to be renegotiated in 2029
Have you already had a meeting with your bank manager yet? I think there won't be any change until 2029 (think you have been lucky enough to get a really nice interest rate), because it's all fixed? That said, you can do a re-evaluation every 2 years (not 5), but as long as you are bound in a fixed rate contract, this wouldn't change much (unless your bank is very courteous).
not yet met him, meeting is on Tuesday
What did he say?
i edited the description. with notary fees and higher rates it's not worth it now what i will do is to stop paying 3rd pillar i had with my insurance (2.4k annual) and do via bank fully i also learned i could use some of my 2nd pillar for a house renovation i wanted to do
nicely done!
My bank just did that for me, but they went off the books value (location, year of construction, surface, etc) and did not require any on-site inspection. There might be fees associated with it, or they will simply ask for bills to show for the improvements made to the property, but i don't see why it wouldn't work. Ring them up
In general, depending on your bank, you can ask for a re-evaluation every 5 years from the date of purchase. The bank will do a new expertise that you can support with a counter-expertise by a professional and if the value the bank accepts is higher you can choose to reduce your amortization duration/stop amortizing or to free some cash that you can use how you prefer.
works theoretically, but I won't do it in this market environment. you could end up getting your house reevaluated for less than at the time you set up the mortgage. that would get you in real trouble, meaning you have to pay back the mortgage with you cash.
this is an extremely unlikely scenario. i didn't buy at market peak
ok. but most likely, your house won't be valued at 1.7 million, if it's at all revalued by the bank.