As of January 1st, 2020, the FINMA-approved rules regarding mortgage financing of investment properties have been in force. These define the minimum equity contribution to be made by the borrower in the case of mortgage financing of investment properties at one quarter (25%) of the loan-to-value ratio, which is determined by the banks taking into account the lower of cost or market principle and is then separated out as the market value. As the owner of an investment property, you can therefore usually borrow up to 75% of the property value (according to the lower of cost or market principle) by taking out a first and second mortgage with your bank.
CG24 Group enables you to increase the proportion of borrowed capital to 80% of the mortgage lending value of a property, giving you more scope for action in a short space of time. This means that equity can be made available to expand and optimise your portfolio by means of maintenance measures, renovations or additional purchases.
Your path to mezzanine capital
Once you have submitted all the necessary documents relating to the property as well as the owner and borrower, we can start the assessment process, which is free of charge and without obligation for you. Individual documents can also be submitted later (e.g. official documents due to processing time and any costs incurred). At your request, we will also create a login for you for an overview on our platform.
Examination & indication
On the basis of the documents provided, we check the borrower's creditworthiness and internally evaluate the property to be mortgaged. Within 48 hours you will receive a non-binding, transparent initial indication of our financing options, including terms and conditions, if desired with several variants regarding loan amount, term and interest rate.
Approval process & contract execution
The internal approval process usually takes no longer than 48 hours. If your loan application is approved, we will immediately send you the contracts to sign.
Financing & establishment of collateral(s)
After the publication of your loan project on the CG24 platform, the time until full funding by the investors is used to register the mortgage. We are happy to assist you in this process if support is required.
Disbursement / ongoing process
After the basic pledge has been established and your loan project has been fully financed by the investors, the loan amount is disbursed.
The interest is automatically invoiced periodically on a quarterly basis. The interest invoices as well as an overview of the loan incl. repayment schedule can be accessed at any time via our platform. Shortly before the end of the term, you will be automatically informed about repayment and assisted in returning the collateral. Of course, we will then also be happy to show you the options for a further loan term.
Requirements for the object to be secured
Replace existing property with real estate
Rented with periodic rental income
Vacancy rate <10%
Commercial share max 30% e.g. office or retail space
Real estate investor with at least 3 years of market experience or comparable qualification
Your property does not meet the requirements?
No problem. We will be happy to develop a tailor-made solution with you and show you what alternatives might look like. Simply get in touch with us.