Living in a New or Existing Property – A Guide to Choosing

Buying a newly built home or choosing an existing property may, at first glance, seem mainly a matter of personal taste. In reality, the decision affects the price you pay, the amount of equity required, the financing timetable, technical risks, expenses over the next twenty years and sometimes even whether the mortgage application is accepted.

To live in a new-build property, it is not enough simply to prefer an unused kitchen or an energy-efficient building. Conversely, buying an existing home does not necessarily mean inheriting a boiler at the end of its life and windows from another era.

The right question is not simply “is it better to buy new or existing property?”, but rather: which property best matches your financial situation, your investment horizon and your ability to absorb unexpected costs?

Mortgage financing is precisely what can reveal differences that remain invisible during a simple property viewing.

New or existing property: what exactly do we mean?

A new home is not simply a recently built home

In this guide, a new property means a newly constructed home that has never been occupied, bought either completed or off-plan. It may be an apartment in a condominium, a villa built by a developer or a house constructed for its owner.

Anyone who wants to live in a new-build property can therefore face two very different situations: buying a completed, immediately habitable home, or committing to a project where the keys will not be handed over for several months or even years.

This distinction matters for the mortgage. In the first case, financing is similar to that of an existing property. In the second, payments may follow construction progress and require the financing to be organised in stages.

“Old” here means existing, not necessarily very old

The term “old” can be misleading. An apartment built in 2022 and occupied for four years is already an existing property, without being an old building in architectural or technical terms.

It is therefore better to distinguish between:

• a new property, never occupied or still under construction;
• an existing property, already built and generally already occupied;
• a genuinely old building, some of whose components may be several decades old.

This distinction matters when deciding whether to buy new or existing property. A five-year-old existing home may offer almost the same technical qualities as a new build while having already absorbed part of the commercial premium linked to first occupancy.

Buying new or existing property: financing changes more than you might think

The asking price is not necessarily the value accepted by the lender

This is probably one of the most important yet least understood points when buying property in Switzerland.

The lender does not automatically finance a percentage of the price you agreed to pay. It determines its own lending value, meaning the value on which it is prepared to take the property as collateral.

The guidelines recognised by FINMA notably require at least 10% of this value to come from equity that does not originate from the second pillar. More importantly: if the purchase price exceeds the lending value, the entire difference must be financed with equity that does not come from the second pillar.

Take a home sold for CHF 900’000.–.

If the lender also values it at CHF 900’000.–, an 80% mortgage represents CHF 720’000.– and the buyer contributes CHF 180’000.– in equity.

But suppose the bank values the property at only CHF 850’000.–:

• 80% of CHF 850’000.– = CHF 680’000.–;
• the buyer must therefore contribute CHF 220’000.– in total;
• the CHF 50’000.– difference between the price and the lending value must additionally be covered by eligible equity outside the second pillar.

This situation can arise both when you want to live in a new-build property and when bidding pushes up the price of an existing home.

With new property, the risk may come from a high launch price, fit-out surcharges or options that the lender does not value franc for franc. A kitchen costing an additional CHF 35’000.– does not necessarily increase the bank’s valuation of the home by CHF 35’000.–.

With an existing property, the same issue can occur when several buyers compete for a rare property and push the price above the bank’s valuation.

Visit our mortgage calculator to test different monthly payments.

That is why having the financing reviewed before signing a reservation agreement can be far more useful than obtaining a simple estimate of the mortgage rate.

Buying off-plan: you are also buying a timetable

Buying a new apartment or a new house before completion adds a dimension that is absent from most sales of existing property: time.

The price may be paid progressively according to construction progress. Financing must therefore be coordinated with payment calls, equity and the point at which the different mortgage tranches actually begin.

To live in a new-build property, you also need to plan where you will live during construction. A six-month delay can mean six extra months of rent, storage costs or bridging finance.

By contrast, buying an existing property usually comes with a more predictable transfer date. You also know what you are buying: the real orientation, natural light, noise, neighbourhood, traffic and the view from the sofa. On an architect’s plan, the supermarket delivery truck across the road remains remarkably discreet.

A new home that costs less to maintain is not automatically easier to finance

The costs you actually incur and the costs used by the lender to calculate affordability are not always the same.

Suppose a new build requires only CHF 4’000.– in average annual maintenance costs. The lender may nevertheless apply its own flat-rate assumption in the calculation.

Take a purely illustrative example for a property worth CHF 900’000.–:

• debt: CHF 720’000.–;
• theoretical interest rate used by the lender: 5%, or CHF 36’000.–;
• amortisation: around CHF 8’000.– per year to reduce CHF 720’000.– to two thirds of CHF 900’000.– over fifteen years;
• theoretical costs at 1%: CHF 9’000.–.

Theoretical cost: CHF 53’000.– per year.

With the affordability limit set at one third of gross income, this would correspond to annual income of around CHF 159’000.–.

If another lender accepts, for example, costs of 0.5% for a new building, the same calculation would fall to CHF 48’500.–, corresponding to income of around CHF 145’500.–.

The house has not changed. The lender’s calculation has.

This is precisely one of the benefits of comparing several institutions with a mortgage broker: the best offer is not necessarily the one that simply displays the lowest rate.

Living in a new-build property: immediate comfort versus future costs

The building’s technical age matters more than its construction year

To compare new and existing property properly, you need to view the home as a collection of components, each with its own service life.

A thirty-year-old house may recently have received:

• a new roof;
• a heat pump;
• new windows;
• new external insulation;
• a complete renovation of the sanitary installations.

It may therefore involve lower future costs than a fifteen-year-old building in which no equipment has yet been replaced.

The price of an existing property should therefore be assessed together with a kind of technical property debt.

A boiler that needs replacing in three years is not yet an invoice, but economically the cost already exists. The same applies to a façade, lift, roof or the pipework of a condominium.

Anyone who wants to live in a new-build property is generally buying a few years of peace of mind on these items. Anyone who prefers existing property should try to convert them into francs before comparing prices.

A property at CHF 850’000.– requiring CHF 100’000.– of renovation is not necessarily cheaper than a new property listed at CHF 930’000.–.

Energy: look at kilowatt-hours, not just the label

Recent buildings generally benefit from better thermal envelopes, modern heating systems and more demanding energy standards.

That naturally favours anyone who wants to live in a new-build property, but the comparison should go further.

For an existing building, ask for the actual consumption figures from recent years. Two buildings with the same floor area can have very different costs because of insulation, heating systems, indoor temperature or window quality.

Also examine what will be required when the heating system is next replaced. Some works trigger additional costs: hydraulic adjustments, radiators, insulation, hot-water production or available electrical capacity.

In a condominium, an efficient energy installation is not purely a personal matter. Decisions concerning common parts are collective.

Risks people rarely think about before buying

New build: construction defects remain possible, but the rules changed in 2026

A new home does not mean a defect-free home. Common problems include waterproofing, cracks, acoustics, terrace gradients, windows, ventilation and poorly executed finishes.

Since 1 January 2026, Swiss law has strengthened buyer protection. The notice period for construction defects is now at least 60 days after handover or after discovery of a hidden defect. A shorter contractual period is not valid, and the right to rectification can no longer be excluded in situations covered by the new rules. The rules also apply to certain sales of recently constructed buildings completed within the two years preceding the sale.

To live in a new-build property, a careful handover inspection nevertheless remains essential. Having a legal right is useful; discovering the defect before paying the final tranche is often even better.

Existing property: walls can have an expensive memory

A serious technical assessment should not be limited to looking for damp and checking the heating system.

Depending on the age and location, it may be worth checking:

• the potential presence of asbestos or other problematic materials before renovation;
• radon in certain situations;
• previous alterations and whether the necessary permits exist;
• the easements entered in the land register;
• the position of the plot on natural-hazard maps;
• whether the land is listed in the register of contaminated sites;
• private pipes and the associated maintenance responsibilities;
• whether the building can genuinely be extended;
• legal access to the plot, not merely physical access.

One example deserves attention: an extension built twenty years ago but never authorised does not necessarily become legal simply because it is old.

The mortgage value can also be affected when an important element of the property has an uncertain legal or technical status.

With a condominium, you are not buying only the apartment

When looking to buy a new or existing apartment, the interior naturally attracts most of the attention. Yet a significant part of the risk may lie outside the apartment itself.

For an existing property, ask in particular for:

• the latest meeting minutes;
• the condominium regulations;
• the amount held in the renovation fund;
• the annual contributions;
• works already approved;
• projects discussed but postponed;
• any payment arrears owed by co-owners.

A renovation fund of CHF 300’000.– may look comfortable. But if the building requires CHF 1.2 million of work, the figure takes on a very different meaning.

For anyone who wants to live in a new-build property in a condominium, the issue is almost the reverse: the fund is often still small because the condominium has only just been created. That is normal, but it is worth checking that future contributions are planned realistically.

Value in twenty years depends more on what does not wear out

It is misleading to assume that a new property will necessarily retain a value advantage.

The “new” status disappears quickly. In twenty years, the home bought new today will itself be an existing property.

Over that horizon, other factors become far more important: location, land quality, transport links, noise exposure, layout flexibility, aspect, architectural quality and standard of maintenance.

It is also useful to distinguish the value of the land from the value of the building. Land does not wear out like a boiler, façade or kitchen.

Take a purely mathematical assumption: with nominal growth of 1% per year, CHF 900’000.– would become approximately CHF 1’098’000.– after twenty years. This is obviously not a forecast. Two properties bought today for CHF 900’000.– could then have very different values depending on their location and the investments made in the meantime.

In other words, living in a new-build property does not guarantee a higher resale value. And whether you buy new or existing property, you should always examine what will still make the property desirable once it is no longer new.

Two homes at CHF 900’000.–: what the choice really changes

Let us compare two owner-occupied main residences, each financed with CHF 180’000.– in equity and a CHF 720’000.– mortgage.

To make the figures comparable, the calculation assumes a hypothetical contractual mortgage rate of 2% and purchase costs of CHF 27’000.–. The actual amount of transfer taxes, notary fees, land-register charges and mortgage-certificate costs depends on the canton and the transaction.

Item	New house	Existing house
Purchase price	CHF 900’000.–	CHF 900’000.–
Equity	CHF 180’000.–	CHF 180’000.–
Mortgage at 80%	CHF 720’000.–	CHF 720’000.–
Purchase costs used in the example	CHF 27’000.–	CHF 27’000.–
Annual interest at 2%	CHF 14’400.–	CHF 14’400.–
Annual maintenance budget used	CHF 3’600.–	CHF 10’800.–
Immediate repairs	CHF 0.–	CHF 60’000.–
Availability	12 months in our scenario	2 months in our scenario
Value after 20 years at +1% per year	≈ CHF 1’098’000.– before the effect of the property’s condition	≈ CHF 1’098’000.– before the effect of the property’s condition

The asking price is identical. However, the buyer of the existing property must have an additional CHF 60’000.– immediately available if the work is to be carried out.

This is where an often-overlooked mortgage consequence appears: a bank does not necessarily finance renovation work at 80% simply because it financed the purchase at 80%. An increase in the mortgage will depend in particular on the value after the works and on affordability.

Buying a new or existing house at exactly CHF 900’000.– therefore does not necessarily require the same amount of liquidity.

What can currently be deducted for tax purposes?

Until 2029, Switzerland still applies the imputed rental value system. Debt interest and certain maintenance costs can therefore be deducted under federal and cantonal rules.

With our 2% assumption, annual interest amounts to CHF 14’400.–.

For the existing house, assume that CHF 35’000.– of the CHF 60’000.– of works genuinely preserve value, while CHF 25’000.– are improvements that increase the property’s value.

Subject to the classification adopted by the tax authority, the owner could then declare:

Potential deduction – year of purchase	New house	Existing house
Mortgage interest in the example	CHF 14’400.–	CHF 14’400.–
Maintenance work deductible in our scenario	CHF 0.–	CHF 35’000.–
Total before other tax adjustments	CHF 14’400.–	CHF 49’400.–

The CHF 25’000.– of value-enhancing work would normally not be an immediate income-tax deduction. It should nevertheless be documented, because certain investments may later be taken into account in the tax calculation when the property is sold.

From 1 January 2029, imputed rental value will disappear for owner-occupied homes, but maintenance costs will no longer be deductible for these properties and the deduction of debt interest will be heavily restricted. A temporary exception is planned for the purchase of a first owner-occupied main residence in Switzerland.

For someone buying in 2026, 2027 or 2028, this creates a rather unusual consequence: the tax treatment of a renovation can depend heavily on the year in which it is carried out.

For a buyer deciding between living in a new-build property and purchasing a property requiring CHF 100’000.– of work, this tax transition therefore deserves to be included in the calculation.

How do you choose between a new and an existing property?

Compare property costs over ten years, not just the purchase price

To determine whether buying new or existing property is preferable, create three columns before visiting your bank:

1. Money required on the day of purchase.
Equity, transaction costs, immediate works, developer options and a liquidity reserve.

2. Money likely to be spent over the next ten years.
Interest, amortisation, energy, maintenance, condominium costs, renovations and expenses that are already foreseeable.

3. Financial risk that is difficult to quantify.
Delivery delays, undiscovered works, a low bank valuation, condominium meetings, family changes or the need to resell quickly.

You then obtain a far more meaningful comparison than “CHF 8’700.– per square metre in a new build versus CHF 7’900.– in an existing property”.

If your priority is to live in a new-build property, request a mortgage assessment before choosing options and finishes. If you are considering an existing building, have the work costed before deciding that the price is definitely attractive.

In both cases, a mortgage broker can submit the application to several lenders, compare their valuation methods and identify the consequences of the purchase before you are contractually committed.

Make a request now to receive mortgage proposals that can help you buy the property you want.

This is particularly useful when your financial margin is small. A CHF 40’000.– difference in the bank valuation or a different affordability calculation can matter more than a few tenths of a percentage point on the interest rate.

FAQ: buying new or existing property in Switzerland

Whether your goal is to live in a new-build property, buy an existing house to renovate or choose between two comparable apartments, financing should be part of the property selection process rather than considered only afterwards.

A property can be excellent and its financing poor. The reverse is also true.

Having your affordability and equity structure assessed with a mortgage broker in your region before you commit allows you to compare new and existing property using figures that reflect your own situation.

Disclaimer: this guide provides general information about buying and financing property in Switzerland. Taxation, transaction costs, cantonal rules, lending value and lending criteria may vary depending on the property, canton, lender and personal circumstances. Individual analysis is recommended before any financial or contractual decision.

Main sources: Swiss Bankers Association guidelines recognised by FINMA as a minimum prudential standard for equity and mortgage amortisation; Federal Tax Administration regarding the reform of owner-occupied housing taxation; Federal Council regarding rules on construction defects.