How to choose the lender that will finance your property purchase

Buying a property is often the result of a long search, whether for a house or an apartment, to live in or as an investment. When the time comes to close, choosing the lender that will finance you is as important as choosing the property itself: you are often committing for many years.

In Switzerland, the choice is wide. Cantonal banks, big banks, regional banks, insurers and pension funds all offer mortgages, with very different lending criteria and pricing policies. Here are the criteria to analyse, whether you are buying or renewing your financing. Article updated in November 2026.

This is often the first criterion people look at, because it directly affects the household budget. Rates shown online are only indicative: the rate actually offered depends on your profile, the loan-to-value ratio, the property and each lender’s commercial policy at the time. With the SNB policy rate at 0%, differences between lenders mainly come from the margin applied, and they can be significant. Always compare firm offers, not just indicative rates. See our current mortgage rates.

In Switzerland, the minimum down payment is 20% of the value used by the lender, excluding purchase costs. That value may be lower than the purchase price, in which case the difference must be covered with additional equity. Each lender has its own valuation methods, so a valuation gap between two lenders can decide whether your project is feasible.

A high loan-to-value ratio reduces the equity required but increases the debt, amortisation and interest. The challenge is to strike the right balance between buying the property and keeping cash for emergencies or other investments.

The part of the loan above two thirds of the property value (the second-rank mortgage) must be repaid within 15 years at most, and no later than retirement. With 80% financing, it represents about 13% of the property value. Amortisation can be direct (the debt decreases) or indirect, via a pledged pillar 3a, with a tax advantage. Lenders do not all offer the same flexibility on the term and method of amortisation, so compare them.

Most lenders offer SARON mortgages and fixed rates from 2 to 15 years, sometimes longer. Check that the range offered matches your plans (possible sale, retirement, renovations) and that the loan can be split into several tranches. Our comparison of SARON, fixed and variable rates helps you choose.

Exit terms are often overlooked, yet they can be very costly if your situation changes (sale, divorce, relocation). Check in particular how the early-repayment penalty on a fixed rate is calculated, whether the mortgage can be transferred to a new property, the exit terms of a SARON contract and the options for extraordinary repayments.

In a market where a property can sell within days, a lender’s speed of response is decisive. In our experience, turnaround times vary widely from one lender to another. Working with an intermediary who approaches several lenders in parallel saves valuable time.

The lender’s financial strength is an often underestimated criterion. UBS’s takeover of Credit Suisse in 2023 was a reminder that even a large institution can run into difficulties. Ratings, cantonal guarantees and reputation are useful indicators for choosing a lasting partner.

Loyalty to your long-standing bank is a virtue, but it should not stop you from comparing. The best partner is one who understands your project, supports you over time and remains attentive when it is time to renew.

The ability to adjust the loan-to-value ratio, accept an atypical profile (self-employed, variable income, non-resident) or tailor the loan: a lender’s flexibility should be tested before you sign, not when you need it.

Choosing your lender is both a strategic and a personal decision. The rate matters, but the property valuation, exit terms, responsiveness and the partner’s financial strength are just as decisive. Comparing several offers remains the best way to get the best terms. That is precisely the role of a mortgage brokerage firm.

Buying or renewing your mortgage? Discover our mortgage renewal service or contact our advisors.