The advantages of owning your own home in Switzerland
Owning a home is a major goal for many households in Switzerland, one of the European countries with the lowest home-ownership rate. Beyond the dream, ownership brings concrete financial, family and personal benefits, but also constraints you need to anticipate. This article, updated in November 2026, takes stock.
1. Building wealth
In Switzerland, financing rules mean that you rarely own 100% of your property: the first-rank mortgage (up to about 65% of the value) does not have to be repaid. However, the part above two thirds of the value, known as the second-rank mortgage, must be amortised within 15 years at most, and no later than retirement. With 80% financing, that represents about 13% of the property value.
Unlike rent, every franc you repay increases your share of ownership, and the property may gain value over time. In a country where real estate is seen as a safe haven, it is a way to build capital gradually.
2. Controlled housing costs
With the SNB policy rate at 0% since June 2025, a homeowner’s interest costs are often lower today than the equivalent rent. Above all, owners choose the term and type of their mortgages (SARON, fixed rate or a combination) and can lock in their costs for 10 years or more, protected from rent increases and lease terminations.
3. Freedom to customise
Owners can transform, renovate and personalise their home as they wish, without a landlord’s approval (subject to condominium rules and building permits). Well-chosen work, especially energy-related, improves comfort and can increase the property’s value.
4. Changing tax rules
Until the end of 2028, owners declare an imputed rental value but can deduct mortgage interest and maintenance costs. From 1 January 2029, the imputed rental value will be abolished; in return, these deductions will disappear for owner-occupied homes, except for a temporary deduction for first-time buyers. Pillar 3a remains an effective tax tool, notably for indirect amortisation. Its limit also rises in 2027: see Pillar 3a in 2027 and indirect amortisation. Full details in our article on homeowner taxation and the end of the imputed rental value.
5. Security for retirement
A largely paid-off home reduces costs in retirement, when income falls. If sold, it can also provide a cash reserve. Note, however, that at retirement the bank reassesses affordability based on your pension income. Anticipating this transition, by amortising or adjusting the mortgage, is essential.
Constraints not to overlook
- A substantial down payment: about 25% of the price, purchase costs included (see equity requirements).
- Maintenance: allow about 1% of the property value per year, plus a contribution to the renovation fund for a condominium.
- Less mobility: selling takes time and incurs costs, including property gains tax.
- Interest-rate risk: rates may be higher when your mortgage comes up for renewal.
For many households, the advantages clearly outweigh the drawbacks. The first step is to know your real budget: calculate your purchasing capacity or talk to a Censeo advisor.
