Swiss Franc mortgages

[The Viking]

Anyone got a view - from the currency rate exposure perspective only - on whether it is a good idea to use a Swiss franc mortgage to buy a property in the euro zone? I would hold the property for 5 years, so that is the timeframe. Its tempting, as the Swiss franc has depreciated against the euro by about 5%- 6% in the last year and its a lower interest rate. The decision depends on the direction of Euro vs. Swiss franc.

 

[MrKeane]

If we knew the answer to your question we would be millionaires. All I can say is that swiss interest rates are rising, in 2 years they could be level with the Euro and exterior forces (such as the US / Japan / China governments) might decide the dollar is too weak and drive the Euro down, this will cause it to slide against the Swissy and you could be the loser.

Its a gamble basicly.