Requirements for Obtaining a Mortgage

To secure a mortgage, the following conditions typically need to be met:

1. Financial Affordability:

Monthly mortgage costs (interest, amortization, and additional expenses) should generally not exceed 33% of gross income.

2. Equity:

At least 20% of the property purchase price must be covered by personal funds. Of this:

• 10% must come from real equity (e.g., savings or retirement funds from the 3rd pillar).
• The remaining 10% can come from pension funds (2nd pillar).

3. Loan-to-Value Ratio:

The mortgage must not exceed the loan-to-value ratio of the property (usually 80% of the purchase price or the appraised value).

4. Creditworthiness:

The borrower must demonstrate good creditworthiness, evidenced by:

• A clean debt enforcement record.
• Stable and sufficient income.

5. Property Valuation:

The property will be assessed by the bank or mortgage provider to ensure that the purchase price matches its actual value.

6. Stable Income:

A secure, long-term income is essential. This is especially important for self-employed individuals, who may need to provide additional proof of income stability.

7. Swiss Residency or Residence Permit:

Mortgages are typically granted to individuals with residency in Switzerland or a valid residence permit.

8. Insurance Proof (Optional):

Some banks may require the conclusion of a life insurance policy or building insurance.

Next Steps

If these requirements are met, you can proceed to submit your mortgage application here.