Why consult a mortgage advisor at the start of your property search

In Switzerland, buying an apartment or a house is often a journey full of obstacles and surprises. It all starts with signing up to property portals and browsing listings. After going through (and going back over) a thousand listings, a dozen viewings and several offers, many buyers who have finally found their dream home run into a complex and discouraging reality: financing the purchase. Not everyone has the equity needed to buy the property they want.

In this article, we briefly explain why, after years of helping families, young couples, entrepreneurs and retirees buy their property, we are convinced that working with a financing advisor, whether ours or another, can save anyone involved in this process a great deal of time and money.

When defining our search criteria, we tend to think more about the property itself (location, type, number of rooms, price) than about our purchasing capacity. There are two types of buyers: those who intend to buy exclusively with their own funds, and those who need a lender to finance up to 80% of the property’s value.

Someone who searches based on the asking price behaves like the first category, filtering by available funds, often without counting notary fees and transfer taxes.

Yet in Switzerland most buyers belong to the second category: they need a mortgage. In that case, two factors determine purchasing capacity: available equity and income. All too often, buyers start their search with property criteria only, and few determine their purchasing capacity at the outset. They end up disappointed when they find a property they love that slips away because its cost does not match what they can afford.

This is where a financing advisor plays a key role from the very first steps: in less than 30 minutes, they can carry out a thorough analysis of your purchasing capacity, so you understand and anticipate any bad surprises and include this criterion in your search from the start.

In a competitive market where several buyers often compete for the same property, being one step ahead is crucial. Sellers and their agents favour buyers whose financing is solid and already established. A purchasing capacity certificate issued by a recognised financing advisor can therefore be a major asset, putting you ahead of less prepared buyers. Real estate agencies also frequently work with financing advisors, which sometimes gives advisors access to off-market properties they gladly share with their clients. That is why involving an advisor from the start of your search puts every advantage on your side.

The valuation of a property by banks and other lenders plays a decisive role in financing. If a bank values the property below the sale price, the buyer must either increase their down payment or try to negotiate the price down, two adjustments that are often difficult and can quickly end the project. In other cases, the property may be undervalued, a sign of a good long-term investment opportunity. Fortunately, not all lenders have the same market knowledge or valuation criteria. Working with a mortgage brokerage firm helps you not only find the best rate and put several lenders in competition through a single contact, but also see the property through the lenders’ eyes to obtain the best possible financing, and avoid having to find extra equity if the valuation comes in below the sale price.

Consulting a financing advisor before starting your property search in Switzerland is an essential and worthwhile step for any buyer. It offers many benefits:

• a targeted, efficient search suited to a competitive market;
• valuable time saved;
• less stress around the purchase;
• a clear understanding of your real purchasing capacity;
• avoiding the pitfalls and disappointments of a complex buying process.

The financing advisor plays a crucial role in assessing properties, clarifying financing procedures and managing expectations, so buyers can focus on the most exciting part of their project: finding and buying their dream home.

• Practical guide: the essential steps to obtain a mortgage in Switzerland
• The documents checklist for your property financing
• How does a mortgage brokerage firm work?

Get started now: calculate your purchasing capacity and get your financing certificate, or contact our advisors.