Wie finanziere ich mein Eigentum

The challenge of high real estate prices

Owning a home in Switzerland is a dream for many, but the high property prices often deter many. „Who can afford that?“ one might ask, given the rising prices on the market.

Equity capital: An unavoidable part of real estate financing

Fortunately, the entire purchase price doesn’t have to be paid out of pocket. The usual practice in Switzerland is that at least 20 percent of the property’s value must be financed with equity. This includes savings, securities, inheritances, and pension assets.

The 35 percent rule and the amortization obligation

If the equity stake is less than 35 percent, amortization of the mortgage is required: within 15 years or by reaching retirement age, a mortgage must be reduced to two-thirds of the property value.

Interest rate comparison: A must for favorable conditions

If your income is sufficient for a mortgage, it’s advisable to obtain offers from several lenders. Often, the excellent interest rates are negotiable, especially if you have a good credit rating.

Saron mortgage or fixed-rate mortgage?

The decision between a Saron mortgage, with variable interest rates, and a fixed-rate mortgage, which offers greater security through a fixed interest rate, can be crucial. Saron mortgages can be cheaper, while fixed-rate mortgages offer greater planning certainty.

Portability: The deciding factor

To obtain a mortgage, it must be demonstrated that the costs of homeownership are sustainable in the long term. Banks often use a hypothetical interest rate of 5 percent for this purpose and take maintenance and ancillary costs into account to prepare for a potential interest rate increase.

A practical example

Let’s take the Swiss family who want to buy a home worth one million Swiss francs. With 200,000 francs of equity, they need a mortgage of 800,000 francs. Assuming a 5% interest rate and other costs, the family must demonstrate a gross annual income of at least 176,000 francs to qualify for the mortgage.

conclusion

Financing a home in Switzerland may seem complex, but with the right understanding and support from an experienced real estate agent, the path to homeownership can be significantly easier. If you need assistance navigating the world of financing or have any questions, I am happy to help. Let’s make your dream a reality together.

Would you like to learn more or do you need support with your real estate project in Switzerland? As an experienced real estate agent, I’m here to help. Contact me for a personal consultation.