Real estate financing —

To ensure your vision becomes reality

With our comprehensive range of real estate financing products, you can easily make your dream of owning your own home come true. We are one of the leading lenders in Liechtenstein and the region of Eastern Switzerland, and our experienced specialists will actively support you in determining the best financing option for your new construction, alteration of a property or real estate acquisition. Our assistance also includes optimally matching the terms and interest charges to your asset situation. Use our mortgage calculator to easily determine the affordability of your dream real estate.

Do you dream of owning your own home, and would like to know whether your financial means are sufficient? With our mortgage calculator, you can determine the affordability of your future real estate and the monthly charges in just a few steps. It’s quick, easy and uncomplicated.

A fixed-rate mortgage is suitable for you if you want to plan your interest costs for real estate financing over the long term and expect interest rates to rise.

This is because the interest rate remains unchanged throughout the entire term with a fixed-rate mortgage. It is based on the market conditions at the time the mortgage is concluded. For you, the fixed interest rate means expenses that are easier to budget for, because your charge always remains the same.

Advantages

• Constant interest charges even when the interest rate rises
• Opportunity to benefit from lower interest rates over the long term
• Precise planning
• Can be combined with other products
• Custom combination of several fixed-rate mortgages with different terms possible

Restrictions

• No opportunity to benefit from a reduction in the interest rate level during the term
• No cancellation or partial repayment possible during the term
• Maturity may occur in a period of high interest rates, making refinancing more expensive

A forward fixed-rate mortgage is suitable if you want to hedge against rising interest rates at an early stage and lock in your interest costs in advance.

With a forward fixed-rate mortgage, the interest rate can be fixed up to three years in advance. This is subject to a surcharge that depends on the lead time and the term of the mortgage. The most profitable arrangement is to close at a low interest rate level when rising interest rates are expected. Since the interest rate remains constant over the entire term, you can precisely plan your budget.

Advantages

• Costs remain the same even if interest rates rise
• Opportunity to benefit in advance from lower interest rates over the long term
• Charges that can be clearly planned
• Can be combined with other products

Restrictions

• No opportunity to benefit from a reduction in the interest rate level
• No cancellation or partial repayment possible during the term

A money market mortgage is a form of medium- to long-term real estate financing that is based on short-term interest rates.

With a money market mortgage, you can benefit from low or falling money market interest rates. However, such a mortgage requires a corresponding risk tolerance and risk capability. Within the framework of the twelve-month term, the interest rate can be redefined in fixed periods (one- or three-month interval). At the end of such a period, you can also make a one-time switch to a fixed-rate mortgage.

Advantages

• Opportunity to benefit from falling money market interest rates
• High flexibility with the option of switching to a fixed-rate mortgage free of charge during the framework term

Restrictions

• Repayment not possible during the agreed term
• Hedging of interest rates in the upward direction not possible

A construction loan is suitable for financing new construction as well as alteration or comprehensively renovating an existing property.

With a construction loan, you finance new construction as well as alteration or renovation. A separate construction account on a current account basis allows you to pay the invoices of the companies and tradespersons you commission from a single key account. After completion of the construction phase or at previously defined times, you have the option of converting the construction loan into one of our mortgages. The interest rate of the construction loan is variable and based on trends in the money and capital markets. Interest on debt and credit commissions are settled at the end of each quarter and debited directly from your construction account.

Advantages

• Optimal overview of payments made according to construction progress
• Calculation of interest and commissions only on the debt balance that is actually claimed
• Free choice of another VP Bank mortgage product after completion of the construction work

Restrictions

• Interest rate may fluctuate during the construction phase