Frequently asked questions about mortgages in Switzerland

The maximum amount of your mortgage depends on your gross income and your equity. As a general rule, mortgage charges (calculated with a theoretical rate of 5%) must not exceed 33% of your gross income. For a CHF 1,000,000 property with 20% equity, the minimum income required is approximately CHF 192,000 per year.

In Switzerland, you must contribute a minimum of 20% of the property price as equity. Of which at least 10% must come from 'hard' equity (savings, pillar 3a, gifts, inheritance). The remaining 10% can come from pillar 2 (LPP). Learn more about equity.

Yes, under certain conditions: the property must serve as your primary residence, the minimum withdrawal amount is CHF 20,000, and after age 50 the amount is limited. The withdrawal is subject to a cantonal tax (5% to 15%). Complete pillar 2 guide.

Yes, in two ways: early withdrawal (the funds become equity) or pledging (the 3a account is pledged without withdrawal). Pledging is often preferable as it maintains the tax advantages. Complete pillar 3a guide.

Banks use a theoretical rate of 5% (stress rate) to ensure you could withstand an interest rate increase. This prudent calculation protects both the borrower and the bank. The actual rate of your mortgage will generally be well below 5%.

The minimum income depends on the property price and your equity. For an apartment at CHF 600,000 with 20% equity, the minimum income is approximately CHF 115,000/year. For CHF 1,000,000, count approximately CHF 192,000/year. Use our simulator for a personalised calculation.

Rates vary depending on the mortgage type and lender. As an indication: SARON (margin) 0.64% to 1.20%, 5-year fixed 1.09% to 1.65%, 10-year fixed 1.50% to 2.05%. These rates change regularly. See current rates.

SARON is a variable rate that follows the money market. It can be lower than a fixed rate but carries the risk of increases. A fixed rate is guaranteed for the entire contract duration (2 to 15 years), offering budget security. Detailed SARON vs fixed comparison.

No. LIBOR was replaced by SARON (Swiss Average Rate Overnight) on 1 January 2022. If you had a LIBOR mortgage, it has been converted to a SARON mortgage. The mechanism is similar: reference rate + bank margin.

It depends on your risk profile and expectations. Short durations (2-3 years) offer lower rates but require frequent renewal. Long durations (10-15 years) offer maximum security but at a higher rate. We help you choose the optimal strategy.

SARON closely follows the Swiss National Bank (SNB) policy rate. The policy rate is currently at 0.0% and is expected to remain stable according to forecasts. SARON is therefore currently at a very low level.

Ideally 12 to 18 months before maturity. This gives you time to compare offers and negotiate. Some banks offer forward rates up to 24 months in advance. Renewal timeline guide.

Yes, and it is often advantageous. Transferring the mortgage note is simple and inexpensive. The new bank generally handles the administrative procedures.

If you wish to break your fixed-rate mortgage before maturity, the bank may require an early termination indemnity. This generally corresponds to the difference between your rate and the current rate, multiplied by the remaining capital and residual term. Penalty calculation.

It is not mandatory, but strongly recommended. At renewal, you have the opportunity to put numerous lenders in competition. A broker does this work for free and can save you significantly.

Direct amortisation: you regularly repay capital to the bank, the debt decreases. Indirect amortisation: you pay into a pledged pillar 3a, the debt remains the same but you accumulate capital that will be used for future repayment. Indirect is often more advantageous from a tax perspective. Detailed comparison.

Mandatory amortisation concerns the 2nd mortgage rank (the portion between 67% and 80% of the property value). This 2nd rank must be repaid within a maximum of 15 years or before retirement age. The 1st rank (up to 67%) generally does not need to be amortised.

Yes, for two tax reasons: (1) mortgage interest remains fully deductible since the debt does not decrease, and (2) pillar 3a contributions are also deductible from taxable income (max CHF 7,258 in 2026 for employees with pillar 2).

Yes, at Vision Hypotheques the service is entirely free for you. We are compensated by banks and insurance companies through commissions when a contract is concluded. This compensation does not affect the conditions you receive.

We compare offers from over 40 banks and insurers in Switzerland: major banks, cantonal banks, private banks and insurance companies. This allows us to find the best-suited offer for each profile.

A bank only offers its own mortgage products. A broker compares offers from multiple banks and insurance companies to find the best conditions. The broker also negotiates on your behalf and supports you through all the procedures.

Several options exist: one spouse buys out the other's share and takes over the mortgage alone, the property is sold and the mortgage repaid, or the ex-spouses retain the property in co-ownership. Affordability is recalculated based on individual income. Divorce and mortgage guide.

Yes, but the bank recalculates your affordability based on your AVS (state pension) and LPP (occupational pension) benefits. If affordability is sufficient, the mortgage can be maintained. The 2nd rank must be amortised before retirement (age 65). Retirement and mortgage guide.

Yes, under certain conditions. Holders of B and C permits can generally obtain a mortgage for a primary residence. Equity requirements are sometimes higher (25-30%). Expat guide.

Yes, it is possible to increase your mortgage to finance renovation or conversion works, provided the property value increases accordingly and affordability permits. Renovation and mortgage guide.