Home financing (cross-border commuter CH) alternative to the house bank

Hello everyone,

I need a bit of input/help.

We have been looking for a house/building plot for almost 2 years.
In May last year, we had something in sight, but it turned out to be nothing.
However, we had a financing meeting at the bank.

Short version: 320k from the bank was possible without any problems.

Now we had a more concrete project and it was actually only about the financing.
However, there is now only 220k from the bank, despite better conditions, a bit more equity, etc.

Reason: I am a cross-border commuter to Switzerland, so I actually earn well and have a fairly secure job and very good coverage (death/disability, etc.).

It seems that since the beginning of this year, there is a new regulation for loan issuance to cross-border commuters. In other words, loans only in the currency of the main income, i.e. CHF.
Firstly, there are hardly any banks that still grant loans to cross-border commuters due to risks for the bank, and the conditions for me are bad and somewhat uncertain in foreign currency (if I lose my job in Switzerland and have to work in Germany, a CHF loan is of course bad).

Now the question:
Are there any reputable financing options apart from banks?
Or does anyone know about this regulation?

At the moment, we can only hope that this law will be changed again.

Thank you and best regards.

Hello,

did you only inquire with regional banks or also nationwide through intermediaries?

In fact, there have always been problems with cross-border commuters. It is not only the currency risk but also the fact that in case of problems, instruments like wage garnishment are more difficult to enforce.

What surprises me is that 320k, especially 220k, do not represent a high burden... Is your partner also financing? BW will probably also have a higher purchase price / construction volume.

So far only with a regional bank.

Therefore, the next step is probably to hire an independent advisor.

The construction volume itself is not very high. About the 320k (excluding land) euros we would have received last year.
My wife is now coming back from parental leave but has been laid off. Although a return to work is planned in the foreseeable future, we currently have to count only on my income (about 4k net).

The statement of the banker regarding the new law has unsettled me quite a bit.

Hello, he probably meant the new real estate regulations that came into effect in March. Therefore, it is likely more difficult in your case. Additionally, your wife is now unemployed, which makes it even harder.

It may sound harsh now, but the Mortgage Credit Directive was your death.

There are now strict rules for this constellation regarding foreign currency loans (for you, a EUR loan is a foreign currency loan) and the conditions that come with them. It can quickly happen that a 30% surcharge on the installment must be bearable to compensate for exchange rate fluctuations.

The only alternative: a loan regionally in Germany, but in CHF. However, I don't believe it will be cheaper in the end.