Loans and mortgages

Financing your Swiss property

Mortgages in Switzerland are mainly provided by the banking sector, although pension funds and state entities can also give them out. Mortgages can easily be obtained by foreigners provided you meet the basic criteria.

The amount you will receive will be based on your financial condition as well as the value of the property you are buying. In Switzerland, foreigners can expect to receive mortgages of between 60 and 80 percent of the property value. Non-status loans are not available, which means the lender will take into account any liabilities you may have in your home country (mortgage/rent, loans, maintenance payments) and will require proof of income (earned income, pensions, investment incomes, although not all may be recognised).

Swiss mortgages are always given in Swiss Francs. Duration can be 5 to 30 years for loans of up to 80% and 35 years for those up to 60%. However, the mortgage must be paid back before you are 70.

Interest rates are approximately 2.5% (2010), although this is variable based on your mortgage. It may be easier to arrange your mortgage in your home country, although you will then have to pay currency exchange fees. In addition, Swiss interest rates are some of the lowest in the world, so it might be preferable to obtain your mortgage in Switzerland, especially if your income is going to be in Swiss Francs.

Try to obtain a number of different offers (approximately three) before choosing a bank or insurance company, as there is strong competition between the different providers.

Further reading

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