More and more people are taking out a loan in Swiss Francs. This is because the Swiss Franc is a very stable currency. A loan or mortgage in Swiss Francs can be very advantageous if the exchange rate of the Franc rises against the euro. Conversely, there are of course risks involved, because the price can also fall. Many Hungarians and Poles experienced this during the credit crisis.
Take out a mortgage in Swiss Francs
It is possible to take out a mortgage or loan in Swiss Francs. This can be done by taking out a loan from a Swiss bank, but sometimes it is also possible to do this with a Dutch bank. In the Netherlands, the consultancy firm De Jager De Looff & Partners, among others, is actively involved in offering loans and mortgages in Swiss banks. There are certain risks associated with these loans, but you can also earn a lot from them. If the exchange rate of the currency rises compared to the euro, your loan will also become cheaper and you will ultimately spend less in euros. It also works the other way around.
Borrow money in Swiss Francs
The Swiss Franc, abbreviated CHF, is used in Switzerland and Liechtenstein. The Central Bank of Switzerland is responsible for issuing the currency. The Swiss Franc is considered a stable currency. Borrowing in the currency of another country and making money from it is in principle possible with any currency, but the Swiss Franc is one of the few currencies that is really suitable for this. Many other currencies, such as the British pound and the US dollar, are too unstable and fluctuate too much. Many Icelanders have experienced this because the rate of the Icelandic krone plummeted against the British pound or Japanese yen. Many Icelanders had taken out their mortgages in this currency. Some saw their loans double as a result. However, the exchange rate between the euro and the Swiss Franc is stable. Switzerland’s policy is also aimed at this.
The Swiss Franc CHF is the currency of Switzerland. The Franc is one of the strongest independent currencies in Europe. The Swiss Franc is used as a means of payment in Liechtenstein and Switzerland. It is also used as a means of payment in the Italian enclave of Campione d’Italia. The Central Bank of Switzerland and the Swiss National Bank are responsible for issuing the Franc.
Convert to euros
When taking out a loan or mortgage in Swiss Francs, it is important that you keep the option open to transfer the account back into euros as quickly as possible, also known as converting. This is important in the event that the exchange rate of the Franc starts to plummet quickly. In that case, your loan could double. That happened to many Poles and Hungarians. These had taken out loans in Swiss Francs, but when the Polish Zloty and the Hungarian Forint rapidly lost value during the credit crisis, the loans of these Hungarians and Poles doubled.