How much equity do I need for a home in Switzerland?

At least 20% of the purchase price, of which 10% must come from hard equity (savings, Pillar 3a, advance inheritance). The remaining 10% can come from the pension fund.

What does affordability mean for a mortgage?

Affordability is met if the imputed housing costs (mortgage interest 5%, amortisation, incidental costs 1%) amount to no more than one third of gross income.

What mortgage models are available in Switzerland?

The three main models are: fixed-rate mortgage (fixed interest for 2–15 years), SARON mortgage (variable interest based on the reference rate) and variable mortgage (rare, higher interest).

Can I use pension fund money to buy a house?

Yes, either as an early withdrawal (payout, taxed at a reduced rate) or as a pledge (remains in the pension fund, serves as security). Early withdrawal reduces your retirement pension.

Home Financing: Equity & Affordability

Everything about financing homeownership: Equity requirements, mortgage types, affordability, and amortization.