{"id":62118,"date":"2017-04-06T17:50:10","date_gmt":"2017-04-06T15:50:10","guid":{"rendered":"https:\/\/wwwtest.ginesta.ch\/immobilienwissen\/illusion-no-15-real-estate-brokers-know-nothing-about-financing\/"},"modified":"2026-06-22T14:57:19","modified_gmt":"2026-06-22T12:57:19","slug":"illusion-no-15-real-estate-brokers-know-nothing-about-financing","status":"publish","type":"post","link":"https:\/\/www.ginesta.ch\/en\/immobilienwissen\/illusion-no-15-real-estate-brokers-know-nothing-about-financing\/","title":{"rendered":"Illusion No. 15: A real estate agent has no idea about financing!"},"content":{"rendered":"

Financing in general<\/strong>
When assessing home financing, Swiss credit institutions check the customer’s creditworthiness and the quality of the property. The financing structure and affordability analysis play an important role. <\/p>\n

The loan against residential property is normally 80% (risk) capital. Therefore, a homeowner must normally contribute at least 20% of the purchase price in the form of equity or deposit it as security. This can be available to the homeowner in the form of savings capital, securities, entitlements or pension fund assets, among other things. In the case of very high incomes, the equity can be mortgaged instead of being offset against the purchase price. In such a constellation, the mortgages can easily reach 90-100% of the purchase price. <\/p>\n

However, a classic financing structure is usually used, whereby the financing institution hypothecates 80% of the purchase price, usually divided into a first mortgage (65%) and a second mortgage (15%). The homeowner contributes the remaining 20% of the purchase price with their own equity. Unlike in other European countries, mortgages in Switzerland do not have to be repaid in full. Normally, the second mortgage is repaid by means of direct or indirect amortization until retirement age, but in 20 to 25 years at the latest. In contrast, the 1st mortgage often remains in place beyond retirement age. <\/p>\n

Affordability also plays an important role, both at the start of financing and at retirement age. The affordability calculation measures the level of housing costs (mortgage interest, amortization and ancillary maintenance costs) in relation to income. Depending on the financing provider, a maximum limit of around one third of gross or net income is set. Some institutions set the limit at 28% of net income, while others finance home ownership at housing costs of up to 33% of gross income. This different assessment of affordability can be equivalent to an income difference of around 10%. <\/p>\n

Luxury and collector’s properties (from CHF 2.0 million)<\/strong>
Financing luxury properties differs considerably from traditional financing. It is worth taking a closer look at the special guidelines and lending principles of credit institutions (banks and insurance companies): <\/p>\n

What is exclusive real estate? <\/strong><\/h3>\n

The assessment criteria vary depending on the credit institution. In general, the following property characteristics speak in favor of the assessment as a luxury property: <\/p>\n