Swiss Mortgage Services For Expats

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( — December 27, 2021) —

In Switzerland, buying a house or apartment almost always necessitates securing a bank loan. It is a critical step in the practical completion of a real estate deal. If you’re considering purchasing a property in Switzerland, understanding the mortgage system is a good idea.

Switzerland’s draw for property investors extends far more profound than its magnificent mountain vistas, some of the most incredible chocolate in the world, and its watchmaking sector.

The stability, privacy, and safety record of Switzerland, as well as the year-round recreational opportunities, are all appealing. When you consider the flourishing banking, finance, and pharmaceutical industries, as well as access to world-class schools, superb healthcare, and a plethora of high-end stores, restaurants, and hotels, you can see why Switzerland is so appealing. In addition to various mortgage options, it offers you various health insurance premiums tools to help you anticipate your expenses correctly. 

What is a mortgage?

A mortgage is a long-term loan employed to finance the purchase of an apartment or a house. A bank provides the loan to the future property owner. 

It is a legal contract by which a building society, a bank, etc., loans money at interest in negotiation for obtaining the title of the debtor’s property, with the stipulation that the transfer of title becomes void after the payment of the debt.

The property acquired is recorded as security to ensure repayment of the loan. We use the loan’s interest and amortization as a percentage of the loan to calculate the mortgage.

The preponderance of people who buy a house does so with the help of a mortgage. If you can’t afford to pay for a property outright, you’ll need a mortgage.

There are several instances where having a mortgage on your house makes sense, even if you have the funds to pay it off.

Mortgage in Switzerland

Switzerland has a substantial mortgage industry, with domestic mortgage loans totaling slightly over CHF 1 billion!/cube/babilhypfibvuaon in 2019.

However, due to the country’s rigorous lending standards, obtaining a Swiss mortgage with a bit of deposit might be difficult. Banks often need a deposit of at least 20%, with 10% receiving payment in actual money rather than assets.

Monthly repayments are generally affordable once you have a mortgage; Swiss mortgage periods are often longer than in other nations, often exceeding 50 years. You must consider the mortgage with your other mandatory expenses like health insurance premiums, to ensure that you are always within your budget.

Getting a mortgage in Switzerland as an ex-pat

Property rights in Switzerland govern mortgages for ex-pats. You can appeal for a mortgage if you have the legal right to buy and possess property in Switzerland.

Non-EU people with a C residence permit and European Union (EU) and European Free Trade Association (EFTA) nationals can buy the property and apply for a Swiss mortgage on the same terms as Swiss citizens. Those with a B permit from outside the EU/EFTA can only buy one Swiss property to live in, but they can get a mortgage on it.

Non-residents with the right to purchase real estate in Switzerland can apply for a mortgage, but they must generally fulfil specific requirements. Banks and other mortgage lenders have different policies. Meeting financial standards, having solid personal links to Switzerland, and having compelling reasons for purchasing Swiss real estate are all possible prerequisites.

Mortgage policies for ex-pats

Non-resident foreigners do not have simple access to the property in Switzerland since they can only become property owners under specified circumstances. Several laws prevent them from making purchases. It is important to remember that the alternatives vary depending on whether the non-resident foreign individual is from a European or non-European nation.

Furthermore, the total number of second residences that non-resident foreigners can buy in the nation is capped at 1500 every year. They are a combination of counties and municipalities having a solid tourism draw.

If a foreigner has the legal right to acquire real estate in Switzerland, they can apply for a mortgage. However, they will only be allowed this if they meet specific criteria. If a foreign national officially resident in Switzerland wishes to apply for a mortgage, they will be subject to the exact requirements as nationals.

Foreigners who are not Swiss residents, on the other hand, can only apply for a mortgage, provided they meet specific criteria set by the financial institution. As a result, each bank has its own set of rules.


If you want to get a house, you must first understand mortgages. You could strike it rich and engage with a trustworthy lender. However, several examples of consumers obtaining a horrible deal from their lenders are because they did not do their homework before approaching them.

So, before you commence shopping for a house, you’ll need to learn about mortgages. You’ll be able to speak with a banker once you’ve learned enough. It would be best first to hold all of the cards in your hands.