Refinance and Take Out Money

Accomodation, House and Garden
1

I was wondering if someone buys a house in Switzerland OK let’s say the house is Fr.1 million and you put down Fr.200,000 so now you are financing the house. Now the house goes up in value to 1.2 million yet your original mortgage was at 1 million or I guess 800,000. Is it possible to refinance the house at a higher value so the mortgage is now $1 million instead of $800,000 and then take out Fr.200,000? That way one can buy a small vacation home in Italy for cash

2

You are not in the Netherlands where that happens. Never heard of it here but ask the bank?

How do you calculate the new value?

3

This is not what happens in Switzerland. Unless you inherited a house or owned it for decades, such increases in valuation are not possible.

This is a more typical situation (may depend on the area): you find your house for 1m, the banks evaluate it for 800k or 900k only so you have to put down 20% ie 160,000 plus the 200k shortfall, 360,000k. So you will struggle to make the valuation even to 1m.

For a 1m / put down 200k, you need an income of around 180,000 per year according to the bank logic (own 33% of the property within 15 years, spend no more than 1/3 of your income on repayments, calculated at 5% mortgage interest).

So in theory yes it is possible ,but in practice no… If you can satisfy the bank’s requirements, you will probably have enough means to find other ways to acquire 200k for a vacation home.

Refinancing to increase value (eg swimming pools) or for major repairs is more common.

4

You don’t the bank does.

To answer the question we released a 6 figure amount from our mortgage which was not our entire equity. It was for a specific purpose and for a specific period of time.

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5

In theory it is possible. You need to speak to your bank. Factors to consider:

  • You’re supposed to pay down the mortgage to a certain level so this needs to be taken into account
  • The bank needs to agree to the valuation
  • It has to be worthwhile for the bank to do
6

Do you have to tell the bank what it is for? For example, do you have to say I want to build an extension onto the house, redo, this, upgrades, etc.? Or let’s say you have $200,000 in “fake equity” compared to the new evaluation price and you can just refinance the mortgage with an extra hundred grand in there and the bank gives you 100 grand cash in your account to use for whatever you want?

7

What’s the equity based on the mortgage you had with the bank or was it equity based on the new appraised value? So you did a whole complete refinance?

8

We did, but don’t know if required. But I expect so. Would you lend someone 100k to invest on lottery tickets?

9

Is your only purpose to annoy people on this form? Asking them ridiculous questions? Wasting my time? Then waste someone else’s time.

10

???

11

What ??? Well I promise you I won’t waste any more of my time responding to your posts.

12

Yes, you can.
Keywords: Hypothek aufstocken

If the money is not reinvested in a property than supposedly the mortgage cannot exceed 2/3 of the property value:

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13

Exactly what I needed. Thanks.

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