Re:Danes Get 20-Year 0% Mortgages
by zhdc1 on Tuesday January 05, 2021 @05:24PM
(#25652036)
From what I've seen, prices have been static and have even started to fall in some areas. There are a lot of people staring down a refinance on a 5 or 10 year interest-only loan in the middle of a recession.
I haven't looked it up, but from what I've been told a lot of it also has to do with investment laws for Pillar 2 and 3 retirement accounts (a certain percentage has to go into Swiss assets). Taking 1-1.5% over LIBOR/SARON or whatever the SNB rate is makes sense, but the fall-out in a couple of years if and when rates start to move up again isn't going to be pretty.
I haven't looked it up, but from what I've been told a lot of it also has to do with investment laws for Pillar 2 and 3 retirement accounts (a certain percentage has to go into Swiss assets). Taking 1-1.5% over LIBOR/SARON or whatever the SNB rate is makes sense, but the fall-out in a couple of years if and when rates start to move up again isn't going to be pretty.