Why choosing a credit rather than a mortgage loan for your property (new home, renovation, transformation, ...)? In this page, we will explain you the advantages and disadvantages of credit and mortgage loan.
A mortgage, or mortgage loan, is a right granted to a creditor. For example if you are buying an house and pay only the half, the other part will belong to the creditor (usually the bank) until you fully reimburse it. With a mortgage loan, you usually benefit from low interest rate, but over quite a long repayment duration (many years).
A credit is sometimes more favorable than a mortgage. First it is much more easier to take. A credit doesn't give as many administrative tasks than a mortgage. Also in term of cost, a credit can be more favorable depending of the situation.
Mortgage or Credit: which is the best?
Taking a mortgage can be long and will cost in the end a lot of money. With a credit you can have deduction on your taxe interests and some other advantages. Here are some interesting points regarding credits and mortgage loans:
- A credit is limited to 250,000 Chf, when the mortgage loan will generally allow you to benefit from any amount needed
- A mortgage loan contract is usually done for many years. A credit can be much more shorter: from 12 to 72 months
- A credit is much more easier to obtain, with less administrative tasks
- In term of cost, it really depends of every situation, amount needed and repayement duration
Credit / Mortgage: compare offers!
Do not hesitate to ask an offer: it's free with no obligation. This way you will be able to compare our credit offers with any mortgage loan offer. Our offer will be available for one full month and does not commit you to anything:Ask for free