Before you start viewing properties, it is worth knowing whether the project can be financed. Each institution applies its own policy, but a few criteria come up almost everywhere in Switzerland.
Equity
As a rule, you need to contribute at least 20% of the purchase price. At least part of it (often 10% of the price) must come from “hard” equity in the strict sense, i.e. not from 2nd-pillar assets. The balance can come from the 3rd pillar or, under certain conditions, the 2nd pillar.
Affordability
The bank calculates theoretical costs using a long-term notional interest rate (often 5%), amortisation and maintenance costs (around 1% of the property value per year). These costs should generally not exceed one third of the household’s gross income.
Amortisation
The part of the mortgage exceeding two thirds of the property value must in principle be amortised, most often within 15 years.
Do not look only at the rate
Term, structure, early-repayment options, use of pension assets and taxation matter as much as the advertised rate.
Test your project with our mortgage calculator, then let’s review it together.
General information only, not personalised advice. Rules and deadlines can change: please check them against your own situation.