Mortgages in Switzerland: housing loans and interest rates in 2025

Thinking of buying a lakeside chalet or a modern apartment in Zurich? Unless you’re purchasing it outright, you’ll likely need a mortgage – and in Switzerland, your residency status, income, and savings all play a role in whether you qualify. While the process is fairly straightforward, the Swiss mortgage system has some unique rules that might surprise you.

Read on for more advice, including:

Mortgages in Switzerland

Switzerland has a sizable mortgage market, with nearly CHF 1.2 billion tied up in domestic mortgage loans in 2023.

However, the country’s strict lending rules mean that it can be hard to get a Swiss mortgage with a small deposit. Banks usually require a deposit of at least 20% which includes 10% paid in real money rather than assets.

Once you have a mortgage, monthly repayments are usually manageable. Swiss mortgage terms are often longer than in other countries, sometimes extending beyond 35 years.

Can you get a mortgage in Switzerland as a foreigner?

Mortgages in Switzerland are determined by property rights. EU and EFTA nationals as well as non-EU residents with a C residence permit can apply for a Swiss mortgage on the same basis as Swiss citizens. Those from outside the EU/EFTA with a B permit can only buy one Swiss home to live in but they can take out a mortgage on it.

If you don’t have residency, it’s slightly more complicated. Under the Lex Koller law – which limits purchases of Swiss property by foreigners – non-residents must apply for a license to buy from their cantonal authority. There are also restrictions on secondary home purchases in some areas.

Non-residents applying for a Swiss mortgage will usually have to meet certain conditions. These vary across banks and other mortgage lenders. Conditions can include meeting financial requirements, having close personal ties to Switzerland and having suitable reasons for buying Swiss property.

You can buy property and obtain a mortgage in Switzerland as a non-resident through an investor visa (also known as the Swiss Golden Visa) if you want to start a business venture and can pay an annual lump sum tax of between CHF 200,000 and 1 million (depending on canton).

Financial requirements for a mortgage in Switzerland

In addition to the deposit, you will usually need to show that your mortgage repayments along with other home maintenance costs won’t be more than 33% of your monthly income. Most Swiss mortgage lenders will carry out an affordability check that looks at your regular income, savings, current debts, and credit history.

Requirements can sometimes be higher if you’re self-employed or a freelancer rather than in fixed permanent employment. In addition to showing proof of self-employment, you will usually need to demonstrate stability of income, which can often mean providing a few years of earnings history.

You do not necessarily need a Swiss bank account to get a Swiss mortgage.

Mortgage rates in Switzerland in 2025

Mortgage interest rates in Switzerland have historically been between 4 and 5%. In recent years, they dropped to as little as 1% following the lowering of the Euribor rate.

Swiss mortgage rates vary dramatically from bank to bank. Rates depend on mortgage type and are heavily influenced by your personal circumstances and financial history, so it pays to shop around. Many lenders offer reduced rates for first time buyers and for green purchases and renovations.

UBS publishes guideline Swiss mortgage interest rates which can be useful for comparison with your country of origin. Current mortgage rates as of May 2025 are:

• Fixed-rate mortgage between 1% (5 years) and 2% (25 years)
• Variable-rate around 2.4 – 2.8%
• SARON mortgage from around 0.9% (1 month period)
• Construction loan ranging from between 1% and 2.4%

How much can you borrow for a Swiss mortgage?

Swiss mortgage lenders will typically loan up to 80% of the value of the property. You will need to provide the remaining 20% and at least 10% of this needs to be in real money, for example, savings.

For instance, if you are buying a Swiss home for CHF 750,000 you would need to provide CHF 150,000 and CHF 75,000 would have to be in cash.

The amount you can borrow is also linked to your earnings. Your monthly payments typically cannot exceed 33% of your monthly salary. This can be a combined salary if more than one person’s name is on the mortgage.

What makes this slightly complicated is that Swiss banks often include maintenance and insurance charges when calculating how much they can lend. They also use a theoretical interest rate of around 5%, even though the real interest rate is currently much lower. This is in case there is a future hike in interest rates.

Example loan calculation

Property value:	CHF 750,000
20% deposit:	CHF 150,000
Mortgage:	CHF 600,000
Interest at 5% (sample rate):	CHF 30,000 per year / CHF 2,500 per month
Principal repayment at 1% of loan amount per year (amount typically repaid for first 15 years of mortgage)	CHF 6,000 per year / CHF 500 per month
Additional costs at 1% of purchase price:	CHF 7,500 per year / CHF 625 per month
Total costs:	CHF 43,500 per year / CHF 3,625 per month

If you multiply this by three, that means you’d need a minimum annual salary of CHF 130,500 or CHF 10,875 per month.

Using your pension fund to secure a Swiss mortgage

One of the main quirks of the Swiss mortgage system is that you can use funds from a pension to finance your home. While this is possible for expats, it might be difficult to accrue enough pension if you recently arrived.

To use pension funds to finance your home, you’ll have to adhere to the following rules:

• The property must be your primary residence
• It must be owned by you alone, or with a 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 use a non-Swiss pension

If you’re eligible, the two methods of using a pension to fund a deposit on a property are to withdraw the funds from the pension or to pledge the fund.

Withdrawing the funds and applying them to your mortgage reduces your pension fund and your mortgage, thus reducing interest paid. Pledging the fund allows you to retain the benefits and size of your pension fund but doesn’t reduce the interest required.

Swiss mortgage calculators

Work out the cost of a Swiss mortgage using one of these online mortgage calculators:

• HYPOHAUS
• UBS

Types of mortgages in Switzerland

Specific product details vary between lenders. Interest-only mortgages (where you pay the interest only during the life of the mortgage loan and the capital at the end) and 100% mortgages (where no deposit is required) are rare or non-existent in Switzerland.

You can expect to find the following types of mortgage in Switzerland.

Fixed-rate mortgages

Fixed-rate mortgages are where the interest rate remains the same for the duration of the mortgage. You pay back a fixed regular amount over a fixed term. The advantage of this mortgage is that you are not affected by interest rate changes, which makes financial planning easier.

One of the main disadvantages is that you don’t benefit if interest rates suddenly drop. Another disadvantage is that they can end up costing more. They are typically more costly to set up and you can only fix the interest rate for a set period, after which time you may be offered less favorable terms. Fixed-rate mortgages in Switzerland can be set for certain durations, usually up to a maximum of around 15–20 years.

Most homeowners in Switzerland who take out a fixed-rate mortgage don’t fully pay off their mortgage debt with it. Rather, they will switch to a variable-rate mortgage or negotiate a new fixed-rate deal at the end of the initial fixed term.

Some Swiss lenders offer forward or future fixed-rate mortgages, where you can agree to the payment terms on a Swiss mortgage with a future start date.

Variable-rate mortgages

Variable-rate mortgages have continually adjusted interest rates. This means that your monthly payments can rise or fall depending on the interest rate.

The benefit of this mortgage is that you will usually benefit from a lower interest rate initially than you would on a fixed-rate mortgage. You also normally have the flexibility to switch to another type of mortgage later on.

However, payments can fluctuate and you could find yourself with rising monthly outgoings is the interest rate is suddenly hiked. Additionally, as these mortgages are often offered with no minimum monthly repayment amount, it can take a long time to repay your mortgage. It is not unusual for Swiss mortgages to last 30–50 years, sometimes longer.

SARON mortgages

Swiss Average Rate Overnight (SARON) mortgages are replacing London Interbank Offered Rate (LIBOR) mortgages in Switzerland. These are similar to variable-rate mortgages, the main difference being that the interest changes at the end of agreed rollover terms (usually three months) rather than fluctuating with each payment.

SARON mortgages are often unlimited in duration, however you may need to give a certain period of notice before you can cancel or switch to another mortgage type.

Bridging loans

Some Swiss lenders offer bridging loans, which are short-term loans that can cover a financial gap if you want to buy a new Swiss home before you have sold your current one. These can be useful if you are struggling to sell your Swiss property or if you have exchanged contracts and are waiting for the sale to complete.

You can typically borrow up to 75% of the value of the property you are buying and will usually have to show evidence of how you will repay the loan if the sale of your old home doesn’t go through.

Offset mortgages

Some Swiss lenders also offer offset mortgages. These allow you to combine a standard mortgage with funds from another account with the same bank, for example a savings account or Swiss pension account. These funds can be used to offset interest owed on the mortgage, enabling you to pay off the mortgage more quickly.

Swiss mortgages for other purposes

Some other types of Swiss mortgage you may find include:

• Construction loan – this is a loan you can take out if you want to cover the costs of building a home. This can then be converted into a mortgage once the initial construction costs are met.
• Commercial mortgage – many lenders offer a variety of fixed and variable rate mortgages to those looking to buy property to run their own business.
• Renovation loan – some Swiss banks offer special low interest loans that can be added to your mortgage, usually between around CHF 100,000 and CHF 250,000, if you want to finance home renovations or refurbishments.

Green mortgages in Switzerland

More banks and mortgage providers in Switzerland are nowadays providing lower interest green mortgages for the purchase of energy-efficient homes or to make green home renovations. Typically these interest rates will be up to around 0.8% cheaper than on a standard mortgage.

To qualify for a green mortgage, your new home or renovations must meet the energy efficiency criteria set by either Minergie or GEAK/CECB (in French, German, Italian). Your mortgage provider will be able to provide you with details of green Swiss mortgage options.

How to apply for a mortgage in Switzerland in 2025

In Switzerland, home loans are typically arranged directly with the lender – which is usually a major bank – rather than through a mortgage broker or agent. You can find more information in our guides to opening a Swiss bank account and Swiss banking.

Other Swiss mortgage providers include insurance companies and independent mortgage brokers. You’ll usually have to contact the banks yourself to request information or fill out a short registration form online. You will then typically be given an appointment to discuss your mortgage before completing the paperwork.

To take out a Swiss mortgage, you will typically need to provide:

• Valid ID such as a passport
• Proof of salary
• Your most recent completed tax return
• Bank statements, usually going back 2–3 years
• Information on your Swiss pension if you are using this to fund your deposit
• Details on the property you are buying, e.g. land registration, sales documents, and insurance certificate
• Proof of credit check if requested by the lender

If you are buying a house with a spouse or partner, both parties will need to sign documents, often at the same time and usually in person.

Through a bank

Most of the major Swiss banks offer mortgages to expats who can buy Swiss property. These include:

• Raiffeisen (in German)
• UBS

Most Swiss cantons have their own cantonal bank. These only operate within the canton, will often not accept clients who are not resident in the canton, and will expect to transfer clients to another cantonal bank if they move away.

If you’re moving between cantons, it’s worth checking whether this will affect your mortgage. You can compare Swiss mortgage deals on the Moneyland website.

Through a broker

When it comes to buying in Switzerland, there are huge advantages to using a mortgage broker or advisor instead of going it alone. Contact one of these trusted brokers today to see how they can help:

• HYPOHAUS
• Swiss Prime International

Help getting a mortgage in Switzerland

There are no help-to-buy or mortgage assistance schemes in Switzerland to help those who otherwise might not be able to afford to buy their own home. If you are unable to come up with the minimum 20% deposit towards property costs, you are unlikely to be offered a Swiss mortgage.

The only available support is in the form of lower interest rates and favorable repayment terms offered to help first-time buyers. However, these are not offered by all Swiss banks so it pays to shop around.

Mortgage fees and costs in Switzerland

There are a few additional costs associated with Swiss mortgages. This will usually have to be paid straightaway or soon after taking out your mortgage. Some banks may allow you to incorporate these costs into the mortgage repayments although this is not common.

Fees to be paid include:

• Mortgage registration fee: these vary across cantons but are typically between 0.5% and 1% of the mortgage amount.
• Mortgage note: this is a legal document needed by the bank or financial institution providing the mortgage, usually between 0.1% and 0.3% of the mortgage amount.
• Admin fees: you lender may also apply a service fee which could be a fixed amount or a percentage of money lent.

There may also be additional fees, depending on your lender. Read more information on the moneyland.ch website.

Taxes and tax relief on mortgages in Switzerland

Property in Switzerland is treated as an asset, meaning it is subject to both wealth and income tax. The representative rental value is added to your taxable income. Mortgage interest, maintenance costs, and indirect amortization in connection with your pension, however, are all income-tax deductible. For more information, read our guide to Swiss taxes.

Do you need property insurance to get a mortgage in Switzerland?

Building premises insurance is a legal requirement in Switzerland. You will need to show evidence of this insurance before you take out a mortgage with many Swiss lenders. In fact, many national banks sell property insurance so you may be able to sort this out at the same time as your Swiss mortgage.

Building insurance covers the immovable fixtures and fittings such as walls and floors against damage caused by fire, flooding and many natural disasters. It is separate from home contents insurance, which protects movable belongings such as furniture. Contents insurance is optional in Switzerland.

How do mortgage repayments work in Switzerland?

Swiss mortgages are unusual in that they are usually divided into two mortgages.

The first mortgage will typically:

• Cover around 67% of the purchase price
• Have an indefinite repayment period

The second mortgage will typically:

• Cover around 13% of the purchase price
• Have a fixed repayment period, usually around 15 years so you will pay off about 1% of the mortgage each year for the first 15 years

So, peculiarly, the focus is on paying off the second Swiss mortgage rather than the first. Many Swiss homeowners never fully pay off their first mortgage.

There are two methods of repayment, known as direct and indirect amortization. Direct amortization involves simply making regular monthly payments to the lender to reduce the mortgage. This not only decreases the debt but also reduces the interest owed on the mortgage.

Indirect amortization, on the other hand, involves investing in a third pillar account offered by your mortgage lender. For example, a pension fund or life insurance fund. These funds are then used to settle the mortgage debt at a later date when they can be withdrawn.

Indirect amortization means that you pay more interest as you are not reducing your mortgage debt in the early years. However, the benefit is that you lower your annual tax bill. Money paid into third pillar accounts is not included in taxable income in Switzerland. Additionally, as you can deduct mortgage interest charges from your Swiss tax bill, the higher interest charges will mean larger tax deductions.

Refinancing a mortgage in Switzerland

You may want to refinance your Swiss mortgage if you:

• Have a fixed-rate or LIBOR/SARON mortgage that is up for renewal
• Want to increase your mortgage with a loan to carry out home improvements or renovations
• Want to move to another mortgage model, for any reason

Most lenders will allow you to refinance your mortgage for the above reasons. If your mortgage is up for renewal, you can switch to another provider and transfer your existing mortgage debt across. This often makes sense if you find a better deal elsewhere. However, bear in mind any additional administrative or transfer fees.

Useful resources

• Swiss government website – information on homeownership
• Hausinfo – information on mortgages (in German)
• Moneyland – section on mortgages on the website