Why do I benefit from consistently low-cost mortgages at VZ?

The mortgage business can be divided into three parts: refinancing, risk insurance and administration. Swiss banks usually perform all three of these functions: they are a lender, risk carrier and administrator all in one. Their dense network of branches in particular means that administration costs are more expensive than in other countries.

HypothekenZentrum, a subsidiary of VZ, broke this mould a number of years ago. It focuses on the administration side of the business and refinances mortgages via a secondary mortgage market with institutional investors such as pension funds, life insurance companies or banks. By specialising on this aspect and not having a dense network of branches, HypothekenZentrum is able to keep its costs far lower than traditional lenders. This is reflected in the lower mortgage prices that we are able to offer our customers.