Mortgages in Switzerland

208 views · Updated on 31 August 2017

Author: Tranio Editorial

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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