Financing is the lifeblood of any real-estate project. Understanding it well means knowing what you can buy, avoiding nasty surprises and negotiating better terms. Here are the Swiss 2026 rules, jargon-free, and the right habits for a solid file.
The 3 golden rules
Everything rests on three principles. Equity: at least 20% of the price, of which 10% must not come from the 2nd pillar. The affordability ratio: your theoretical costs must not exceed 33% of your income. Amortization: the debt must be brought down to two thirds of the property's value within 15 years maximum.
Estimate your capacity in a few seconds with our mortgage calculator.
You don't calculate with today's rate, but with a theoretical rate of about 5%: it's the banks' stress test.
Equity: where does it come from?
Several sources are admitted: your savings, the 3rd pillar (3a), an advance or donation, and the 2nd pillar (LPP). Careful: at least 10% of the price must come from “hard” funds, that is, outside the 2nd pillar.
Using your LPP reduces your future pension and your retirement coverage: to weigh carefully.
The 3rd pillar (3a) is often the smartest lever: it serves as a down payment while easing your taxes. A donation or an advance on inheritance is also admitted as equity: a frequent family boost for a first purchase.
Fixed rate or SARON: which to choose?
The fixed rate locks your rate for a term (5 to 10 years): visibility and peace of mind. The SARON follows the market: potentially cheaper, but variable. Many borrowers combine several tranches to smooth out the risk.
There's no universally winning choice: it all depends on your horizon, your risk tolerance and current rates. The real question isn't “fixed or SARON”, but “which structure for your profile”.
Build a solid file
A complete and clear file speeds up the approval and improves the terms. Prepare:
- Identity documents and residence permit if applicable
- Last three pay slips and latest tax return
- Proof of equity (savings, 3a, LPP statement)
- Details of current costs and credits
- Property documents: listing, floor plans, description, surface
Direct or indirect amortization?
With direct amortization, you repay the bank: the debt goes down, and so does the interest. With indirect amortization, you pay into a 3rd pillar that repays later: you keep the tax advantage of the debt and build up savings. The choice depends on your tax situation and your goals.
Optimize and negotiate
Terms are negotiable: put the institutions in competition, take care of your profile (stable income, few credits) and anticipate the renewal of your mortgage several months in advance.
Think long-term too: a well-maintained and well-valued property refinances better. If your income or the property's value changes, renegotiating at the right time can noticeably reduce your costs over time.
The smart move: before buying, simulate your financing and have the target property valued. See our calculator and the valuation guide.
Frequently asked questions
How much equity do I need?
At least 20% of the price, of which 10% must not come from the 2nd pillar (savings, 3a, donation).
How is my borrowing capacity calculated?
With a theoretical interest rate of about 5%, plus amortization and maintenance: the total must not exceed 33% of your income.
Fixed rate or SARON?
The fixed rate secures, the SARON follows the market. The right choice depends on your risk tolerance; many combine both.
Can I use my 2nd pillar?
Yes, but not for the 10% of hard equity, and it reduces your future retirement provision. To weigh up.
What is the affordability ratio?
The relationship between your theoretical housing costs (interest at ~5%, amortization, maintenance) and your income. Ceiling: 33%.
Direct or indirect amortization?
Direct reduces the debt; indirect via a 3a keeps the tax advantage and builds up savings. Depending on your tax situation.
Over how many years to amortize?
The second-rank debt (above two thirds of the value) must be amortized within 15 years maximum, or until retirement age.
Can you negotiate your mortgage rate?
Yes. Put the banks in competition and take care of your file: a good profile gets better terms.
When should you renew your mortgage?
Anticipate several months before the maturity to compare offers without pressure and avoid an unfavorable automatic renewal.
How do I simulate my financing?
Use our online mortgage calculator: it immediately gives you an estimate of your buying capacity.