What budget do you need to buy a house in Switzerland?

• The real scope of the purchase budget
• Your means: down payment, income and documents
• Structuring the mortgage to buy a house
• The budget for living at home, numbers first
• How to buy with a method that inspires confidence
• Concrete examples to find your bearings
• Common mistakes & best practices
• FAQ — Frequently asked questions

Whether you’re a first-time buyer, investor or business owner, buying a house starts with a simple, decisive question: how much should you really plan for? Beyond the asking price, your envelope includes purchase fees, the mortgage structure, amortization, maintenance and insurance. Here we provide details on a reliable budget to buy a house, explain step by step how to buy a house in Switzerland, share concrete examples, and offer calls to action to get personalised support.

The real scope of the purchase budget

Acquisition cost vs. total cost

The publicly listed price of a property is not the total outlay. The budget to buy a house has three components: acquisition (price + fees), financing (equity + mortgage) and holding (recurring charges). Until these three pillars are clarified, it’s hard to submit an offer with peace of mind.

Purchase fees to plan for

Depending on the canton and the specifics of your file, typical costs include: notary fees, transfer tax, land register entry and costs related to the mortgage certificate. These items often represent a non-negligible percentage of the purchase price. Factoring them in early prevents last-minute erosion of your down payment.

Financing benchmarks used by lenders (banks and insurers)

Many lenders use simple benchmarks to assess affordability: a sufficient share of own funds, total theoretical charges compared with your income, and a cautious view of future expenses. Even if market rates fluctuate, the stress test remains conservative to avoid excessive burden down the line.

Your means: down payment, income and documents

Building the down payment

To buy a house, you need some equity (own funds): a down payment of around 20 % of the price is often required by lenders, with a minimum share in “hard” liquid assets (savings, 3rd pillar, gifts). Depending on your overall strategy, the 2nd pillar can be used (withdrawal or pledge). The goal: secure the structure without weakening your safety nets.

Borrowing capacity and the “comfort zone”

Borrowing capacity is more than a monthly payment; it includes amortization and a recurring maintenance budget. A healthy approach is to keep the sum of these items at a comfortable ratio to your gross income. That gives you a realistic purchase ceiling to buy a house without undue strain.

Dossier: documents to gather

To speed up the process: income proofs (payslips, certificates, or accounts for the self-employed), list of assets (savings, 3rd pillar, possibly 2nd pillar), regular expenses, recent bank statements, IDs, and information on the target property. A complete file facilitates the financing letter and strengthens your offer’s credibility.

Structuring the mortgage to buy a house

1st and 2nd lien: what are they for?

A mortgage can be in the 1st or 2nd lien. The 1st lien is the base of your loan; the 2nd covers the upper portion and generally must be amortized over a defined horizon. By adjusting both parts properly, you balance monthly outlay, safety and wealth building.

Amortization: direct or indirect

Banks and insurers will inevitably mention two types of amortization :

• Direct amortization: you repay principal, the debt falls.
• Indirect amortization: you fund a pledgeable 3rd pillar; attractive for tax and flexibility, it keeps the nominal debt higher, which may suit your strategy.

Choosing the rate type

• Fixed rate: visibility over cash flows.
• Variable rate (SARON): more responsive to conditions, with regular adjustments.
• Mix (blended rate or combined): you spread risk and stagger renewals. The right mix depends on your tolerance for fluctuations, your time horizon and target liquidity.

There is also a construction mortgage which, as the name suggests, is specific to the building phase and helps you progress in line with project milestones.

Insurance and household protection

Protecting the home (building, liability) and protecting income (disability, death) are two often underestimated pillars. The cost of protection should be included from the outset in your budget to buy a house to avoid unpleasant surprises.

The budget for living at home, numbers first

Routine maintenance and renovation fund

In practice, set aside an annual maintenance envelope (servicing, repairs) and multi-year reserves for major items (roof, facade, heating). In co-ownership (PPE), monitor the renovation fund’s health and AGM records.

Energy, comfort and improvement works

Insulation, windows, heating system: these directly impact your bills and comfort. Simulating a before/after helps prioritise upgrades that cut costs while adding value. If you care about the environment, building or buying an “eco-friendly” building may appeal!

Taxation and asset value

Property taxation (possible deductions, imputed rent depending on canton) and the asset’s intrinsic quality (location, orientation, layout) influence the net cost and future resale. Thinking in terms of “long-term value” supports a calmer purchase.

How to buy a house in Switzerland: a method that inspires confidence

Here are the important steps not to underestimate:

Confidential budget pre-assessment

Clarify your envelope, sketch the rate structure (fixed/SARON/mix), and set an order of magnitude for monthly outlay including amortization and maintenance. You’ll get a realistic ceiling price to buy a house without overreaching.

Targeted search and price validation

Compare listings with your benchmarks (price/m², condition, future costs). If needed, request a financing letter: it strengthens your position in negotiations and speeds up completion.

Offer and conditions

Set a price consistent with your simulations, include relevant conditions (financing approval, technical checks), and specify the timeline. A well-organised file builds trust.

Final mortgage setup and signings

Lock in the structure, sign the loan agreement, then see the notary. Preparing funds, mortgage certificate and land register entry in advance prevents last-minute delays. Don’t hesitate to run a mortgage simulation for a clearer overview of your options.

After purchase: setup and follow-up

Update insurance policies, budget for maintenance, plan priority works (safety, comfort, energy performance) and track due dates. A first review at 6–12 months allows calm adjustments.

Concrete examples to find your bearings

First-time buyers: balance and visibility

Salaried couple with mixed down payment (savings, 3rd pillar). Goal: buy a family home without tapping the emergency fund. Ideas: a fixed-rate tranche for stability, a small SARON tranche for flexibility, progressive amortization of the 2nd lien, a clearly defined annual maintenance budget.

Self-employed: liquidity and resilience

Variable income. Goal: protect the household while preserving margins. Ideas: mix rate tranches, prioritise a liquidity reserve, choose between direct/indirect amortization according to tax profile and business plans.

Investor: net yield and resilience

Buy-to-let (divisible house or with annexe). Goal: positive net cash flow under realistic scenarios. Ideas: prudent rent assumptions, planned expenses, renovation fund, sensitivity to rate and vacancy changes.

Growing family: leverage what you have

Sell the current home to move upmarket. Goal: buy a larger house without upsetting your balance. Ideas: assess net sale proceeds, stagger rate maturities to avoid bottlenecks, budget for moving and furnishing.

Common mistakes & best practices

Mistakes to avoid

• Focusing on the “monthly payment today” and forgetting amortization and maintenance.
• Overlooking purchase fees (notary, taxes, land register, mortgage certificate) and having to cut the down payment.
• Delaying discussions with a mortgage expert when the window of opportunity opens.
• Choosing a uniform rate structure that exposes everything to a single renewal.
• Neglecting household protection and post-purchase budgeting.

Practical tips to optimise your budget

• Set a realistic range before any viewing.
• Distribute 1st/2nd lien smartly to smooth the effort.
• Compare fixed, SARON and blended; stagger maturities.
• Keep a cash buffer for the unexpected.
• Plan recurring annual maintenance and a multi-year plan.
• Stress-test scenarios with a prudent rate and higher charges.
• Factor in transfer tax, land register and certificate costs from the outset.
• Document a complete file to speed decisions.
• Choose between direct and indirect amortization according to your tax profile.
• Think future value: location, orientation, layout.

When should you contact an expert?

As soon as your project takes shape. A quick pre-assessment clarifies your envelope, refines your rate strategy and gives you the right moves to buy a house at the right price with a controlled timeline.

FAQ — Frequently asked questions