General conditions
- Swiss resident (B/C) or Swiss citizen
- 20% equity of which 10% non-pension
- Repayment capacity: income covering max 1/3 of property costs
- Primary residence (otherwise secondary/investment)
Equity (20% minimum)
- 10% non-pension: savings, gift, other property
- 10% from LPP: early withdrawal or pledge
Example: CHF 1M purchase → equity CHF 200k (100k non-pension minimum + 100k LPP possible).
Mortgage (80%)
- 1st mortgage: 65% of price, fixed or variable, amortisation optional
- 2nd mortgage: 15%, amortise within 15 yrs or by age 65
Rate types
- Fixed (1–15 yrs): security
- SARON (variable): tracks SARON
- Mix: e.g. 50% fixed 10 yrs + 30% SARON
Indicative 2026: 5-yr fixed ~1.5–2.2%; 10-yr fixed ~1.8–2.5%; SARON ~1.3–2.0%.
Repayment capacity
Banks stress-test at 5% theoretical:
- Interest at 5% × debt
- 2nd mortgage amortisation (~1% of debt)
- Maintenance 1% of property
- Total < 33% of gross annual income
Example: CHF 1M property, debt 800k, income 200k → theoretical costs ~CHF 51,500, limit CHF 66,000 ✓
Steps
- Estimate budget (bank or broker)
- Search (Homegate, ImmoScout, agencies)
- Viewings and choice
- Written offer with suspensive conditions
- Bank pre-approval
- Notarised deed
- Land registry entry
Side fees (3–5% of price)
- Notary: 0.1–1%
- Transfer tax: 1–3.3% by canton
- Land registry: 0.1–0.5%
- Mortgage deed: CHF 1,500–3,000
- Expertise: CHF 500–2,500
Taxation
- Imputed rental value: added to taxable income
- Mortgage interest: fully deductible
- Maintenance: deductible (20% lump sum or actual)
- Wealth tax: tax value − mortgage debt
Foreigners (Lex Koller)
- C / B (EU/EFTA): free purchase for primary
- B (third country): free for primary, restrictions on secondary
- G (cross-border): cantonal authorisation required
- Non-residents: strictly restricted (tourist zones)
Tips
- Compare 3 banks + 1 broker (0.3–0.5% gaps)
- Consider 3rd pillar B: can be pledged
- Plan renovations (1–2% of value/yr)
- Unmarried couples: succession pact for protection
- Complex deals (PPE): independent notary
