How much equity do I need to buy a home in Switzerland?

At least 20% of the purchase price. At least 10% must be hard equity, such as savings, 3a assets or gifts, not 2nd pillar money.

How do Swiss banks calculate affordability?

They use an imputed interest rate of around 5%, add about 1% of the property value for maintenance and include amortisation. These costs should not exceed one third of gross household income.

Can I use my pension fund to buy a home?

Yes, for a home you live in, through an early withdrawal or a pledge. The withdrawal is taxed separately and cannot cover the minimum 10% of hard equity.

Documents for a mortgage application

Banks decide faster when the file is complete from the start. This checklist covers what Swiss banks, insurers and mortgage brokers usually ask about the borrower, the financing and the property. Brokers and advisers can send it to their client and receive every document in one place.

Send this list as a request

1
Copy of ID or passport, and residence permit if applicable
Required
For every borrower.
2
Latest salary certificate and last three payslips
Required
Retired borrowers: pension statements instead.
3
Latest tax return with all appendices
Required
Ideally with the latest tax assessment.
4
Debt collection register extract (less than 6 months old)
Required
One per borrower, from the debt collection office of the place of residence.
5
Proof of equity
Required
Bank and custody statements, gift or loan agreements from family.
6
Pension fund certificate
If it applies
Needed if you withdraw or pledge 2nd pillar assets.
7
Pillar 3a statements
If it applies
If 3a assets are used or pledged.
8
Financial statements for the last three years (self-employed)
If it applies
Balance sheet and profit and loss account, plus commercial register extract.
9
Existing loans and leasing contracts
If it applies
Monthly commitments are included in the affordability calculation.
10
Purchase contract or draft
Required
Or the reservation agreement for a new build.
11
Land register extract
Required
Recent extract, usually less than 3 to 6 months old.
12
Property sales brochure, floor plans and photos
Required
With living area, building volume and year of construction.
13
Building insurance certificate
If it applies
Shows the insured value of the building.
14
Condominium documents
If it applies
Deed of division, regulations and renovation fund balance.
15
New build or renovation: permit, plans and cost estimate
If it applies
Needed for construction loans.
16
Current mortgage contract and last interest statement
If it applies
Only when refinancing an existing mortgage.

Your contact gets one email with this list, uploads each document from a link without an account, and is reminded until everything is in.

Send this list as a request

Tips

Swiss banks require at least 20% equity, of which at least 10% must not come from the 2nd pillar.
Affordability is calculated with an imputed interest rate of about 5% plus maintenance costs: total costs should not exceed one third of gross income.
Order the debt collection and land register extracts last, so they are still recent when the bank reviews the file.
Ask several banks with the same complete file to compare offers quickly.

Questions

Sources: postfinance.ch · bankbsu.ch · swisslife.ch · swissbanking.ch · ch.ch · economie.gouv.fr · bportugal.pt · swissbanking.ch