Are you dreaming of becoming a homeowner and looking for the ideal financing solution? Resolve lets you compare a large number of lenders to offer you the most competitive rates. But that's not all. Resolve can also advise you on the optimum amount of downpayment and help you understand the tax implications of buying a property.
You can contact us at any stage in your project, whether you are in the process of considering a real estate purchase or even if you have already signed at the notary's office.
To purchase a property, you not only need your own capital but also, in most cases, external financing. This is called a mortgage loan - or simply a mortgage. For the lender - usually a bank - a lien on your home serves as collateral. In Switzerland, typically up to 80% of the property's value can be financed through a mortgage. However, before retirement, the mortgage must be reduced to 65% of the property's value. The ongoing calculated costs should not exceed around 33% of the household income. To optimise interest expenses, it's advisable to compare different offers and negotiate carefully.
Mortgage interest (or mortgage rates) is the interest charged on mortgage loans. In other words, it's the amount the lender charges in exchange for the funds lent. This amount is paid regularly, generally on a quarterly basis. You also have the option of fixing this rate over a period ranging from 1 to 25 years, giving you greater visibility over your payments and securing your financial charges.
There are different mortgage models for financing residential property. Generally speaking, there are fixed-rate mortgages, variable-rate mortgages and money-market mortgages (SARON). While the interest rate on a fixed-rate mortgage remains unchanged for the entire term of the loan, it varies in the case of a variable-rate mortgage and a money market mortgage (SARON). The latter offer greater flexibility, but carry a higher risk, as property financing costs are harder to predict and require regular monitoring of the mortgage market.
To finance a property, you generally need a first and second mortgage. The first mortgage covers the first 65% of the property's value, while the second mortgage takes care of the remaining financing requirements up to a maximum of 15% of the property's value. The second mortgage must be repaid, or amortised, within 15 years or before retirement at the latest.
You can contact us at any stage of your project, whether you're thinking about your property purchase, have already signed at the notary's or want to extend your current mortgage.
Buying an apartment or a house is one of your dearest wishes? Before diving into this project, accurately evaluate your financial capacity with a professional to see if your income and savings are sufficient to finance the purchase, or to explore possible solutions to achieve it. Take the time to examine your financing options carefully. This preliminary evaluation will help you make informed decisions and successfully conduct your real estate project in Switzerland thoughtfully and securely.
