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Financing homeownership

Work out your budget

In Switzerland, the amount of your own capital that you have to contribute towards the cost of your own home is around 20% of the price. On top of that, you will have to pay additional costs such as taxes and fees for conveyancing and registering your ownership of the property with the authorities. You can work out your budget using the checklist on the website.

Raising your own capital contribution

Once you have worked out your house purchase budget, you will have to raise 20% of the purchase price from your own capital before the bank will grant you a loan. Your capital contribution may consist of:

  • Savings
  • Securities
  • An advance against an inheritance, gifts
  • Loans from relatives or friends
  • Pension fund savings: if you need a mortgage to fund the purchase, at least 10% of your own capital contribution must come from sources other than your pension fund
  • Pillar 3a savings,
  • Etc.

Arranging a mortgage

Few people are able to buy a property using their own savings, so most ask a bank for a mortgage, i.e. a long-term loan on which you pay interest and which is secured by pledging the property as collateral:

  • In Switzerland, a basic mortgage normally covers around 65% of the price.
  • Usually this is not enough, so a second mortgage is required to cover up to 80% of the price, i.e. a further 15%. Due to the increased risk, most banks charge a higher rate of interest on the second mortgage.

You will find more information on the website