A mortgage is, and will always be less expensive than a personal loan. Indeed, the real estate is used as collateral and there is less risk for the bank. However, it is quite a long process to get a mortgage, and there are situations in which a loan can be an appropriate solution.
A personal loan to finance real estate will cost more than a mortgage and looks less advantageous. Firstly, the maximum loanable amount is 250,000 CHF. Secondly, the interest rate is quite much higher. However, for small amounts, a loan provides certain benefits:
Generally, you should go for a mortgage. A loan is an option to consider for small amounts, and only if you have the possibility to reimburse your debt quickly. Indeed, the total cost of a loan varies depending on the loan duration.
Are you looking for a small amount real estate financing solution? Would you like to know more about your options? With Multicredit, you can get some expert advising from a real estate agency. Do not hesitate to call on an advisor if you need to figure out which solution to choose!