Bank or insurer mortgage: compare offers on one page
A lender label tells you less than valuation, product conditions and all-in cost.
Compare the loan, not the institution label
Banks and insurers can both be relevant mortgage counterparties, but their acceptance criteria and product ranges differ. The meaningful comparison uses the same debt, property, term and amortisation. A lender described as flexible may still reject your income profile, while another may price the same case favourably. Do not rank categories of institutions in advance. Obtain written offers and record which assumptions differ before concluding that one is cheaper or better suited to your ownership plans.
Valuation changes the apparent price
Ask which lending value each offer uses and whether it changes the required equity. A competitive rate on a lower accepted valuation can require more cash than a slightly higher rate elsewhere. Compare the financing gap and your remaining reserve alongside interest. If a valuation is conditional on an inspection, treat the offer as conditional too. Avoid committing purchase funds before the property assessment is complete, especially where renovation assumptions are used to justify an expected future value.
Hypothetical all-in comparison
On CHF 500,000 debt, a hypothetical 0.10 percentage-point rate advantage is CHF 500 per year. If the offer also requires a CHF 600 annual paid package that you would not otherwise buy, the headline advantage disappears before considering exit costs. The figures are invented, not provider prices. List mandatory costs separately from optional services and compare their genuine household value. A useful bundled product can still be worthwhile, but it should be selected deliberately rather than hidden in the rate comparison.
Check commitments attached to the loan
Ask whether an account, pension arrangement, insurance policy or salary transfer is required. Determine how long that condition lasts and what happens if it stops. Where insurance accompanies indirect amortisation, request payment obligations, costs, insured benefits and surrender values. Do not assume a lender’s insurance product is necessary merely because the lender is an insurer, or that a bank never proposes bundled products. Written conditions establish the commitment; a sales presentation does not settle its future flexibility.
Compare service and decisions
Identify who handles amendments, renovation funding and a future renewal. Ask about response times, required documents and how ownership changes are assessed. Service is not a substitute for a fair contract, but it matters when a time-sensitive property transaction needs an answer. Request the process for complaints and unresolved administrative errors. If an intermediary presents several lenders, ask about the scope of the comparison and remuneration so you understand whether the selection is broad or limited to particular partners.
Keep a comparable offer table
Your final table should include accepted valuation, equity, debt, product, term, rate formula, amortisation, mandatory costs, exit conditions and offer validity. Mark unresolved points rather than inventing a number to complete a column. Compare the same time horizon and at least one life-change scenario. Select the arrangement with understandable obligations and a resilient budget. The institution’s brand can help assess service, but the signed financing conditions and the ability to meet them determine whether the mortgage works for you.
Sources and further reading
Original Clearwise analysis. External reporting provides context; rules and contract terms must be verified with the competent authority or provider. Some press articles may require a subscription.
Apply this to your situation
Compare your actual documents and clarify what matters before making a commitment.
Request a free consultationGeneral guidance, not a binding quote or personalised legal, tax or investment advice. Examples are hypothetical and results are not guaranteed.
