About the Geneva & Zurich Mortgage Market
Much like elsewhere in Europe, interest rates for Swiss mortgages currently stand at historic lows – descending as lower than 2% – so there has never been a better time to purchase a property in Switzerland.
Mortgages in Switzerland are usually procured from one of the large Swiss banks, or from one of the regional or ‘cantonal’ lenders, and the process is similar to arranging a mortgage elsewhere in Western Europe, such as France or Spain.
What we can achieve for you is wholly dependent on your asset position and income, how alluring you are as a potential client – and how good we are at negotiating on your behalf!
Key Product Highlights
- Very competitive pricing, especially with assets under management (AUM)
- Mortgages available up to 85% loan to value (LTV) with AUM
- Interest only is occasionally possible(5-7 years) but capital and interest (up to 25 years) being the norm
- No minimum or maximum amounts
- Full suite of mortgage products – including fixed, variable, and LIBOR-linked loans, all in any currency
- Specialist mortgages such as bridging loans and offset mortgages are also available in Switzerland
Enness International can help you secure the most competitive product available through our panel of Swiss lenders, and arrange all ancillary services connected to the mortgage such as life insurance, buildings and contents insurance, and foreign exchange.
About the Geneva & Zurich Property Market
With its extremely high living-standards, low tax-rates, and unrivaled natural beauty, Switzerland has long been a popular destination for foreign buyers, and it’s economic centres Zurich and Geneva have been ranked among the top cities in the world in terms of quality of life.
There are additional restrictions in place which need to be considered when arranging a Swiss mortgage. For foreign buyers, the appropriate Swiss residency permit will be required; permit B (for citizens of EU/EFTA countries), or permit C (for citizens of non-EU/EFTA citizens). In addition, special permission is required for the purchase of holiday homes, which is determined by the location of the property and pre-existing quotas, and can only be rented out on a periodical, not on an annual basis.
You will also incur mandatory notary fees, as in France, which can amount to up to an extra 5% of the price of the property. Again, like in France, a wealth tax also applies for property ownership in Switzerland. However, this tax is less than its French equivalent – standing at a maximum of around 1% as of 2016 across all cantons, and usually lower.