Taking out a loan as a couple is worthwhile
Anyone who can take out a loan with two people is well served: the second borrower increases the chance of obtaining the desired loan amount. The loan conditions, such as interest rates, also improve when a second person is involved in taking out the loan.
Are you a couple planning a major investment in the near future, such as a mortgage or a property purchase abroad? Or a major purchase such as a car? Then it's worth applying for a loan for the planned investment together. However, you should only apply for a loan as a couple if you both have a regular income.
If both borrowers or partners are employed on a permanent basis, the couple will have a better credit rating overall. This is because the second borrower increases the budget of the main borrower. This reduces the risk of default for the bank, as two partners are responsible for repaying the loan.
Taking out a loan as a couple: a few tips for applying for a loan together
Before you apply for a loan or take out a loan, certain requirements must be met. Here are a few tips from us:
Creditworthiness
With every loan application, banks check whether the borrower is solvent - i.e. has a good credit rating. To ensure that your loan application is not rejected, we recommend that you check your credit rating and, if necessary, have it corrected before you apply for a loan. You can find out more about credit checks here.
Fulfil general requirements
If you are applying for a loan in Switzerland as a couple or alone, you must be between 18 and 70 years old and either be resident in Switzerland or the Principality of Liechtenstein or be a cross-border commuter in Switzerland with a regular income. You must also have Swiss citizenship or a C residence permit, B residence permit, G residence permit or L residence permit.
Complete the credit application in full
In addition to your personal details and those of the second borrower, information on these points must be provided:
- Marital status
- Children
- Housing costs
- Monthly health insurance premiums
- any alimony
- Current liabilities (= loans, leases, mortgages)
Calculate the appropriate credit line before taking out a loan
This information is important in order to determine your budget for the loan for two. This is because the effective credit budget calculated by a bank often does not correspond to the "perceived budget" of the two borrowers.
The bank calculates all the monthly costs of both people in order to determine the maximum monthly instalments for your loan. The loan amount is then often lower than you imagine.
So that you as a borrower can assume a realistic loan amount, we recommend our budget calculator for loans: Calculate the amount for your loan there and then.
Are both partners liable as borrowers for the joint loan?
No. The applicant or the partner who has concluded the contract for the loan is always liable. Although the bank takes the second borrower into account in the application for the credit check, only the first person concludes the contract. You may therefore give your partner your consent to the loan application.
The bank can only issue the loan agreement to both partners if the amount for a loan for two is higher, for example in the case of a loan for married couples. With a so-called cross agreement, the loan is split between both borrowers.
Mortgages are a good example of a loan for two: here the two borrowers are jointly liable or take on the repayment of the instalments together.
Taking out a loan together: Where are the best interest rates?
There is no one-size-fits-all answer to this question. The banks and their interest rates are as different as the borrowers themselves. This is because each applicant has an individual income and individual expenses. And all banks offer different services and interest rates for loans for two, as each bank has a different risk policy.
In any case, two borrowers who share their financial expenses increase their chances of getting lower interest rates when taking out a loan. A good credit rating also increases the chance of more favourable conditions.
What we recommend before applying for a loan is to compare the interest rates at the various banks. This makes sense as it will help you get your loan at a more favourable rate.
Use one of our free services and compare the interest rates at the various banks right here. Your account will be very happy about it.
What happens after the loan application and when?
Whether you apply for your loan alone or with a second borrower - the bank checks the details of all persons, calculates the credit limit and then authorises the loan. Provided, of course, that the applicants fulfil all the criteria.
After that, it's pretty quick: you are usually approved on the same day. As independent loan brokers, we ensure that your application is processed quickly - regardless of whether you are applying alone or with a second borrower.
After approval, it takes 14 days until you receive your loan. This is regulated by law so that you or the second borrower still have a period of reflection and the option of cancelling the loan. We will of course take care of all administrative matters.
Interested in taking out a loan? Then we look forward to receiving your loan application. If you have any questions or would like advice, please do not hesitate to contact us: +41 44 244 34 00.