A subordinated real estate loan, also known as a loan with subordinated security, is a loan that you secure with your property. Investors fund it through the platform. It is a separate loan, in addition to an existing mortgage from your bank.
- Security: a mortgage note on your property (mortgage lien).
- Ranking: As a rule, the loan is subordinated, that is, it ranks behind your bank's mortgage. First rank is possible but rare, for example for special properties or building land.
- Amount: for private individuals, CHF 50,000 to CHF 1,000,000. For companies, the amounts of the SME loan apply, up to CHF 1,000,000.
- Loan-to-value: up to 80% of the estimated value, including the new loan.
- Use: for example for a renovation, an investment, debt consolidation or bridge financing.
Because the loan is secured by a mortgage lien, the Consumer Credit Act (CCA) does not apply. Instead of the revocation period under the CCA, a withdrawal period of 14 days from receipt of the signed contract applies. How it works is explained in How does a subordinated real estate loan work?