Practical guide: the essential steps to obtain a mortgage in Switzerland

In Switzerland, the feasibility of a property project rests on three parameters:

• equity (your own contribution);
• affordability (the cost-to-income ratio);
• the bank’s valuation of the property.

These three parameters must stay aligned from the start of the project until signing. This guide, updated in November 2026, explains each of them, then sets out the practical steps of your mortgage application.

For a main residence, lenders require at least 20% of the property’s lending value, of which at least 10% outside the 2nd pillar (savings, pillar 3a, gifts…). On top of that come the purchase costs (transfer tax, notary, mortgage note), generally 4% to 5% of the price in French-speaking cantons, payable in cash.

• Buy-to-let property: at least 25% equity, without using the 2nd pillar, and faster amortisation of the debt above two thirds of the value (within 10 years at most).
• Second home: requirements are higher, often between 30% and 50% depending on the lender and the region.

Full details in our article on equity requirements.

The lender then checks that you can sustainably carry the loan, even if rates rise. The calculation uses theoretical costs, independent of current market rates:

• a theoretical interest rate of around 5% on the whole loan;
• amortisation of the part of the loan above two thirds of the property value, over 15 years at most (or until retirement if sooner);
• maintenance costs of about 1% of the property value per year.

The total should not exceed about one third of your gross income. For a second home, the costs of your main residence are added to the calculation. For a buy-to-let property, the lender checks that rental income covers the theoretical costs, or failing that, that your income can make up the difference.

Example: for a CHF 1,000,000 property financed with an CHF 800,000 mortgage, theoretical costs amount to about CHF 40,000 in interest, CHF 9,000 in amortisation and CHF 10,000 in maintenance, i.e. CHF 59,000 a year. That requires a gross income of about CHF 177,000.

This is the least understood aspect. The equity and affordability rules apply to the value used by the lender, which is not always equal to the purchase price. If the bank values the property below the price, the difference must be covered with additional equity, outside the 2nd pillar. Each lender has its own valuation methods, so approaching several lenders can make all the difference.

1. Determine your purchasing capacity before viewing properties, so you target homes you can actually finance. Our purchasing capacity calculator gives you a first estimate.
2. Get a financing certificate: it strengthens your offer against other buyers.
3. Prepare your file: ID, income, equity, property documents. See our documents checklist.
4. Make an offer to the seller, subject to financing if possible.
5. Compare financing offers: rate, valuation, exit terms, flexibility. The choice between SARON and fixed rate is made at this stage.
6. Sign the loan agreement and arrange, where applicable, the withdrawal or pledge of your pension assets.
7. Go to the notary: signing of the deed of sale, creation of the mortgage note and payment of the funds to the seller.

Obtaining a mortgage in Switzerland means mastering the balance between equity, affordability and the bank’s valuation. Good preparation and putting several lenders in competition help you get better terms and avoid unpleasant surprises. That is why we recommend consulting an advisor at the start of your search.

Have a project in mind? Contact our advisors for an analysis of your situation.