Property buying guide for Switzerland
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Mortgages in Switzerland

Although foreign nationals are able to obtain mortgage loans in Switzerland, foreign purchasers are subject to various restrictions.

Maximum LTV ratio 80%
Minimum loan amount CHF 500,000*
Maximum loan amount Not defined
Fixed rates 1-1.75% per annum
Loan term From 10 years
Minimum age of borrower Not defined
Maximum age of borrowerby the end of the loan term Not defined, but for borrowers over 67, additional guaranteesare required
Maximum percentage of monthlyincome for mortgage 33%

*1 CHF=0.93 EUR (as of late December 2016)

Documents

Mortgage applications in Switzerland require the following documents:

  • confidential declaration specifying the applicant’s residence, marital status, employment and spouse´s and children´s names, if applicable
  • proof of income for previous year for individuals, financial statements for legal entities
  • additional financial guarantee in the amount of 20% of the property value (e.g., cash assets, property, securities)
  • information on the mortgaged real estate.

Foreign-language documents should be translated into English, German, French or Italian.

The loan application approval process usually takes 4-8 weeks.

Extra costs

Non-recurring property appraisal and Due Diligence costs in Switzerland amount to about CHF 2,500. The exact amount to be paid depends on the property value. Switzerland has a severe early repayment charge: 100% of the remaining debt.

Property appraisaland Due Diligence About CHF 2,500
Property insurance Property insurance 0.2%per year (only in case buyerpurchases a whole building)
Mortgage broker´s fee 0.75-3.5% of the loanamount
Early repayment charge 100% of the remainingdebt amount

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    Property buying guide for Switzerland
    Article 3 of 6
    Tranio’s managers offer advice on buying real estate in Switzerland
    Anna Boyarchukova
    Anna Boyarchukova
    Head of Residential Department
    +44 17 4822 0039
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