10 elements to watch before taking out a loan
Euro or CHF : Make the right decision
This is a particularity of our area, cross-border workers can borrow money in CHF. Although it is a great solution in a majority of cases (household income mainly in CHF for example) and often a cheaper solution than a loan in €, it might not be the best option for a rental property loan.
Franchise too short
The franchise allow you to not reimburse the totality of your instalment from the beginning of the loan, so that you don’t end up paying double: a rent and a loan or two loans at the same time. It is necessary to estimate the franchise duration properly, as a deadline overrun might always happen with a building project for example and thus an issue to cover the instalment of two simultaneous loans.
Defining the appropriate downpayment
Nowadays banks request a downpayment in order to finance any project. The objective is to optimise this downpayment so as to avoid immobilizing too much cash-flow which would prevent you from financing new projects or simply paying out unexpected bills. This is especially true with the fix rate loans for which the rates are very low currenlty and it goes along with a negotiation of the fees linked to advanced reimbursement.