Who resolves a mortgage with a contract for a fixed period before the expiry of the agreed period, you must pay the Bank a certain amount. Experts speak of a Penalty or a prepayment penalty. It is legally undisputed. These can be significant sums of several tens of thousands of francs. When a client resolves a mortgage at an interest rate of 1.68% in advance, the Bank, to create which is the rate of return you the money for the remainder of the can. The market interest rates have fallen to zero percent, charged to the customer for the remaining term of the difference of 1.68 percent on the mortgage.
in order for the early termination of the contract is not for loss of business, take into account some of the banks today, minus interest. This means that the Bank demanded to the mentioned 1.68%, a further half of one percent negative interest rate for the remaining term of the mortgage. These Figures are taken from a concrete case. A customer fought back with success against the pass on the negative interest rates. According to the district court of the upper court of the Canton of Zurich issued a judgment in your favor. You save on your Penalty around 2000 francs. The name of the Bank not published by the Supreme court.
An important point in the reasoning of the judge was whether the customer could have expected when concluding the mortgage contract with negative interest rates. According to the judgment dates of the contract from the year 2011. As the court observes, the Swiss national Bank on 22. January – for the first time in 45 years, minus interest charged. The customer can therefore be assumed that a Bank would be able to keep your money, “if not profitable, at least without negative interest rate”. This is despite the fact that in the media in 2012 about the possibility of negative interest rates were reported to change.
decision can’t be challenged
How far this judgment is a ground-breaking effect, is still to be determined. The decision can be appealed before the Federal court. But there are comparable Decisions in other cases that are already final. As this newspaper reported in December 2018, and a similar judgment of the district court of Zurich, the acceptance of the parties involved.
The financial disadvantage for banks in this jurisdiction are likely to be foreseeable. Because only those customers, who are their fixed-rate mortgage before the minus interest completed, will have a Chance to a corresponding reduction. And it is comparatively rarely that customers to replace multi-year mortgage before the end of the term. Reasons for a divorce, a job-related relocation, serious illness or a death, for example.
Bank customers can bypass the Penalty also, if the home-buyer assumes this mortgage to the previous conditions. In the current low interest rate, this does in General, but only against a corresponding reduction in the purchase price. And finally, the Amount of the penalties is not carved in stone. The customer certainly has room for negotiation – especially in the case of good and long-standing customers of financial institutions are often more accommodating.
Created: 29.10.2019, 17:15 PM
