Switzerland offers low interest rates for mortgages on property, and while the process is similar to arranging a mortgage in other countries, there are some things to be aware of. Lenders usually require that your monthly income is 3x the amount of your loan repayment.
Mortgage Calculator: Credit Suisse
Mortgages are usually arranged directly through your lender such as a major bank rather than a broker or agent. Typically you can find fixed rate mortgages, variable rate mortgages, offset mortgages, capped rate mortgages and bridging loans. Mortgage rates are generally 4-5%. You will need at least a 20% deposit.
If you’re planning to use your pension as a deposit there are certain terms to be aware of:
- The property must be a primary residence
- It must be owned by you alone or you and your spouse or registered partner
- If you default on your mortgage you will also lose your pension
- You must already have paid into the pension fund and accrued a sum to pledge
- This option is unlikely to be available if you aim to pledge a non-Swiss pension, for example a company pension accrued in your previous country of residence