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Buying a house or an apartment in Switzerland is the dream of many households! But between a tight market, strict banking requirements, and marked disparities between cantons and municipalities, you need to be well prepared. We offer you our informed advice for purchasing a property and we help you to:


  • Put together your financing file;

  • Carry out a coherent search to find the ideal property;

  • Conduct the transaction with discernment until the conclusion of the sales contract.

Step 1: Prepare your file in advance

Before any property search, you must first put together a solid financial file. Indeed, banks apply strict selection criteria to grant a mortgage.

Determine your financial purchasing capacity

First of all, be aware that two ratios dominate Swiss real estate financing:


  • The 20/80 rule: this requires a minimum down payment of 20% of the purchase price in the form of own funds. This threshold constitutes the basis of any mortgage application.

  • The one-third rule: the total cost of housing (interest, amortisation and charges) must not exceed 33% of the household’s gross income.

In general, banks apply a theoretical rate of 5% to simulate the interest burden, to which are added the mandatory amortisation (to bring the debt down to 66% in 15 years) and maintenance costs estimated between 0.7% and 1% of the property’s value.

Optimise and mobilise your own funds

If your own funds come mainly from your personal savings, be aware that it is possible to use your pension pillars to strengthen your contribution.


Indeed, your 2nd pillar (LPP) can be withdrawn or pledged to complete the contribution. The withdrawal increases purchasing capacity but reduces retirement benefits and triggers a one-time tax. Pledging, on the other hand, preserves your pension while serving as a guarantee to the bank.


The 3rd pillar A, for its part, can be used for the purchase or amortisation of the property while offering an annual tax advantage.

Mortgage pre-approval

To demonstrate the seriousness of your file, it is strongly recommended to obtain a confirmation of purchasing capacity from a bank or broker in order to attach it to your purchase offer. This document specifies your maximum budget and positions you as a credible buyer during negotiation.


Define your needs and analyse the properties

Once your budget is defined, the challenge is to find a property that is consistent with your means and your needs.

Define your criteria and the ideal location

Of course, the balance between location, quality and price remains the key criteria when choosing a property. For example, a sought-after municipality offers stability and long-term appreciation, but usually at a high cost. It may be more interesting to study other, more affordable regions, which often hold hidden potential.


Moreover, the type of property also influences the mode of ownership. Thus, a single-family house, a condominium (PPE) apartment or a rental building do not meet the same expectations nor the same obligations in terms of maintenance and management.

Evaluate the market value of the property

Before any financing request to the bank, check whether the asking price for a property you are interested in truly reflects its market value. To do so, you may call on an expert or evaluate the property yourself with a hedonic estimate.


If it is an atypical property, it is better to proceed with an intrinsic value estimate, because very often this type of housing is over- or under-valued.

Study the key documents

Every property for sale is subject to national, cantonal and/or municipal obligations. Thus, we recommend having a look at the Land Register extract to identify easements, rights of way or existing mortgages.


For a PPE (condominium), the co-ownership regulations, assembly minutes and renovation fund reveal the health of the co-ownership and potential future charges.


Step 3: Financing and mortgages in Switzerland

The Swiss mortgage system offers several formulas that make it possible to adapt the loan to the buyer’s profile and to interest rate trends.

Know the different types of mortgages

Three main types of mortgages are distinguished:


  • Fixed-rate, offering payment stability over time.

  • Variable-rate, more flexible but exposed to market fluctuations.

  • SARON (Swiss Average Rate Overnight), linked to the money market, often more advantageous but requiring close monitoring.

Of course, the choice of the best mortgage depends on your risk tolerance, the economic context and long-term strategy.

Choose the right amortisation

Amortisation refers to the progressive repayment of your mortgage loan:

  • Direct amortisation gradually reduces the debt, which decreases the interest paid but limits tax deductions.

  • Indirect amortisation, more common, consists of paying the repayments into a pledged 3rd pillar A account. The debt remains stable until withdrawal, allowing the interest deductions to be maintained while saving.

Negotiate the best conditions

Naturally, we recommend comparing the available financing offers, as banks, pension funds and insurance companies apply different margins and criteria. To help you, you may consult an expert broker or use an online brokerage platform.


Step 4: Become the official owner!

Once the financing is validated, comes the most decisive phase: the conclusion of the sales contract.

The purchase offer and the price negotiation

Presenting a structured offer, accompanied by mortgage pre-approval, strengthens the credibility of your file. The negotiation margin depends on the tension of the local market and the time the property has been on sale.

The role of the notary and Swiss law

In Switzerland, it is the notary who authenticates the transaction, drafts the sales deed and ensures registration in the Land Register. Ownership of the property is transferred only upon the signature of this official deed, after validation of all payments.

Additional costs to anticipate

Transfer duties, notary fees and Land Register fees vary from canton to canton and often represent between 2% and 5% of the purchase price. These costs must be fully covered by own funds, as they cannot be financed by a mortgage.


Step 5: After the purchase: honour your obligations as a homeowner!

Congratulations, you have just bought an apartment or a house in Switzerland! From now on, you must take on new responsibilities, both on the insurance side and on the tax side.


To begin with, you must take out building insurance (mandatory in most cantons) to cover your property in case of fire, lightning or storm.


Household insurance (furniture, theft, water damage) and civil liability insurance must be added, strongly recommended to cover damages caused to others.


Finally, be aware that you must pay taxes as a homeowner, in particular the one on the rental value of your property. In return, mortgage interest and maintenance costs are deductible from your taxable income.


By structuring each step of your property purchase (from calculating own funds to the notarial signature), you guarantee the solidity of your investment and the peace of your future patrimonial planning.


Do you have a property purchase project in Switzerland? dreamo.ch supports you in this process with precise estimation tools, a network of local experts and independent advice to secure each step of your property project. Discover properties for sale across Switzerland.