Real estate financing in Switzerland: things to bear in mind

Even with prices going up, owning a home can still be affordable as long as you plan and finance it carefully. We can get you up to speed with the following:

• Equity requirements:

You need at least 20% equity capital, of which at least 10% must come from uncommitted funds (not pension fund money, for example).

• Affordability:

The affordability calculation is based on an imputed interest rate (indicative rate) of around 4.5–5%, regardless of the actual current mortgage interest rate.

The monthly payment (including interest, amortization and ancillary costs) usually can’t be more than a third of your gross monthly income.

• We recommend using pillar 3a funds, inheritances, or interest-free loans to maximize your chances. It’s also worth checking if there are any support programs at the local or cantonal level you could make use of in addition to your own funds.

Get informed to invest in the future with Cosmos Values. Get in touch.