All the answers to your questions (FAQ)

Frequently asked questions about Swiss mortgages

Frequently asked questions at a glance

In Switzerland, banks mainly assess financial affordability (theoretical charges): a “stressed” interest rate (often around 5%), amortisation, and maintenance costs (often around 1% of the property value). As a rule of thumb, these charges should generally not exceed about 33% of your gross income.

The required income therefore depends on the purchase price, the borrowed amount and your other liabilities (leasing, loans, maintenance payments). With comparable profiles, the lower your fixed expenses, the higher your borrowing capacity. Use our mortgage calculator to get a more accurate estimate.

As a general rule, at least 20% of equity (down payment) is required on the purchase price. In many cases, at least 10% must come from “own” funds (savings, gifts, third pillar depending on the situation), and not solely from the second pillar.

Beyond the minimum, a higher down payment improves the interest rate, the strength of the application and the safety margin (and reduces amortisation). Stricter requirements may apply to certain properties (investment properties, atypical objects).

Yes. Through the home ownership promotion scheme, you can use your second pillar (LPP) for your primary residence, typically either via early withdrawal or pledging. Early withdrawal increases equity, while pledging keeps the assets in the pension fund but may improve financing capacity.

Please note: early withdrawal can reduce pension benefits (retirement/disability/death) and is subject to a separate tax. Pledging avoids immediate taxation but may increase debt and ongoing charges.

Below is a simplified example of a mortgage calculation. Feel free to use our free mortgage calculator with your own data.

  • Property price = 1'000'000.-
  • Equity (20%) = 200'000.-
  • 1st rank mortgage = 650'000.-
  • 2nd rank mortgage = 150'000.-
  • Mandatory amortisation = 10'000.- (150'000 / 15)
  • Fictitious interest rate 5% = 40'000.- (800'000 × 5%)
  • Maintenance costs 1% = 10'000.-
  • Fictitious annual costs = 60'000.-
  • Required annual income = 180'000.-
  • Monthly cost = 3'080.-

A mortgage broker is an intermediary who analyses your situation, structures your application and approaches several lenders (banks/insurance companies) to obtain comparable offers (rates, conditions, flexibility, amortisation), usually free of charge for you.

They also help you avoid costly mistakes (poor timing, unsuitable products, penalising clauses) and optimise your strategy (fixed vs SARON, terms, tranches, risks).

We have one of the largest networks of professional mortgage brokers in Switzerland to save you time and secure the best conditions for your mortgage. We analyse your profile, compare lenders and support you in choosing your mortgage (term, type of mortgage, tranche structure).

You also benefit from end-to-end support (application, conditions, coordination) and an external review of key risk points (charges, equity, amortisation, safety margin).

Check four key points: transparency (remuneration/commissions), real access to multiple lenders, quality of advice (explanations, scenarios, risks), and experience with cases similar to yours (employees, self-employed, variable income, condominiums, etc.).

Request written comparisons (rates, terms, penalties, options) and clear explanations of trade-offs: the “best rate” is not always the best solution if the conditions are too rigid.

The most common types of mortgages are: fixed-rate mortgages (stability over 2–10+ years), variable-rate mortgages (SARON), and combined mortgages (fixed + variable to balance stability and flexibility).

The right choice mainly depends on your investment horizon, risk tolerance, monthly budget and ability to absorb interest rate increases.

Start by clarifying your priorities: maximum budget, need for stability, flexibility (early repayment, relocation, sale), and term strategy. Then compare rates and conditions (penalties, fees, options, amortisation).

The “best” mortgage is the one that optimises total cost, risk and flexibility for your situation—not just the rate displayed on a given day. The financing of your home should be tailored to your needs.

Acquisition costs include:
• on the financing side: possible application fees, valuation/appraisal costs, and costs related to setting up guarantees depending on the structure. Banks apply these fees differently depending on the institution.
• on the property purchase side (often the most significant): notary fees, land registry fees, possible transfer taxes (depending on the canton), and costs related to deeds and registrations. Also plan a budget for maintenance and insurance after the purchase.

Rates fluctuate daily and are available in our comparison table of current mortgage rates.

A condominium (PPE) is a form of co-ownership: you own your unit (apartment) and share common areas (roof, lift, façades). You pay condominium fees and contribute to the renovation fund according to your ownership share.

Before buying, review the minutes, regulations, fund status, planned renovations and charges. A thorough review helps avoid unpleasant surprises (major works, conflicts, restrictive rules).

In Switzerland, possible tax deductions related to a mortgage-financed property purchase mainly include: deductibility of mortgage interest (depending on your tax situation) and certain maintenance costs (lump-sum or actual, depending on the canton).

In return, the imputed rental value (depending on the applicable system) may increase the taxable income of owner-occupiers. The net impact depends on the canton, income and level of debt.

Yes, but for a fixed-rate mortgage, early termination usually results in a potentially significant break fee (penalty). The expected interest savings must be weighed against the total exit cost.

For the renewal of your mortgage, it is best to plan ahead (often several months in advance) to compare offers and choose the right timing (terms, tranches, rate type).

Standard method to calculate your financial affordability: theoretical charges = (mortgage × stressed rate) + amortisation + maintenance, then compare with gross income. Many lenders require these charges to remain ≲ one third of the household’s gross income.

Practical steps: 1) property price, 2) equity (min. 20%), 3) mortgage, 4) stressed charges, 5) add/subtract other obligations (loans, alimony, children). A broker can refine this according to lender-specific rules.

Frequently asked questions in detail

Other Questions and Answers

Mortgage simulation
Try our mortgage loan calculator and find out how much you can afford
Mortgage calculator
FREE