Based on recommendations by FINMA (Swiss Financial Market Supervisory Authority), a real estate transaction can be financed by a mortgage loan of up to 80% of the property’s estimated value.
Therefore, a buyer has to cover at least 20% of the purchase price using net funds. These are made up as follows:
Your eligibility for a loan also depends on one additional condition: the annual mortgage cost cannot exceed 33% of your annual income. The annual mortgage cost is determined using a theoretical interest rate of 5%, as recommended by FINMA. Your actual interest rate my differ.