Purchasing costs Switzerland

Swiss Mortgages

Mortgages, particularly to foreign investors, are still relatively new and some of the currently available options may not be as flexible as in the UK.

Purchasing Costs

Get a Free Quote Additional Costs of Buying in Switzerland
Switzerland is a highly developed country with clearly defined regulations and procedures that have to be followed when purchasing property. In particular, there are tax and fees that have to be met by the purchaser and these should be taken into account when budgeting the viability of an investment purchase.

Purchase Costs
Although the process of purchasing a property in Switzerland is well regulated, there is not necessarily a correspondingly high transactional cost, which can make buying in Switzerland appear more appealing, overall.

Many lenders insist that a full survey is conducted on the property, before they agree to finance the purchase; other Swiss lenders (unlike UK mortgage providers) do not require a survey. Purchasers, however, should not necessarily eliminate this cost as it is still seen as a worthwhile investment, given the amount of money that you will be parting with to purchase the property!

Every purchaser is required to use a notary in order to effect the transaction. These costs vary substantially and some notaries will insist on dealing with the entire transaction including registering the mortgage and creating the mortgage certificate.

In reality, this is a reasonably cost-effective way to go about things and the notary can then take responsibility for the whole process. Expect to pay in the region of 5 percent of the purchase price to a notary, but remember to agree these fees in advance.

Insurance is, of course, another advisable cost when purchasing a property in Switzerland. Unlike in the UK, life insurance is not always required. Some lenders insist that basic cover is taken, although this is in no way seen as essential.

Similarly, despite the fact that many lenders do not require that contents or building insurance is taken, there is likely to be a clause in the mortgage that states that the purchaser would be responsible if anything should happen to the property. In practice, therefore, it seems prudent for every owner to have adequate cover. Fire insurance is considered essential and all lenders will insist on this type of coverage.

Summary
Bullet Point Additional purchasing costs in Switzerland are surprisingly low in comparison with the UK;
Bullet Point many essential expenditures such as surveys are not enforced on property purchases in Switzerland, although they are still considered wise for the savvy investor;
Bullet Point notary and registration fees amount to approximately 5 percent of the purchase price and are payable on completion.

Online Mortgage Enquiry and Quote

Online Enquiry...

If you would like to receive a quote for a mortgage from a broker please
Click here...

Mortgage Calculator

Calculate

Typical Interest Payments

First Time Buyers

2.89%

Purchased Fixed

2.89%

Discounted Rate

2.99%

Buy To Let

2.99%

Commercial

3%

 

 

Affordability Calculator

Calculate
Get a Mortgage Quote

Mortgage News Feed Mortgage News Feed

Questions & Answers

Read about general questions asked by brokers and lenders and the best ways to answer...

Mortgage Glossary

Search for terms beginning with the letter:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z