Switzerland financing guideA mortgage in Switzerland for foreigners is available, but it is shaped by two filters at once: whether you are legally allowed to buy the property, and whether a Swiss bank is willing to lend against it. Non-residents should plan on a large equity contribution, and the property question comes first. This guide walks through both filters, the paperwork, the real cost of borrowing and the alternatives.
Permission to buy comes before permission to borrow
Swiss banks will not look at your income until the purchase itself is lawful. Under the Lex Koller (the federal act restricting acquisitions by persons abroad), people without Swiss residence generally need cantonal approval to buy a home, and approval is mostly limited to designated holiday resorts and to modest living space, commonly capped at around 200 m². Major hubs such as Zurich, Geneva, Basel, Bern, Lausanne, Lucerne and Zug are in practice closed to non-resident buyers.
EU and EFTA nationals who live in Switzerland on a B or C permit are generally exempt, and C-permit holders from other countries are treated like Swiss citizens. A third-country national on a B permit can usually buy a home they will live in themselves. If you fall outside these groups, read our buying guide for Switzerland first, because the mortgage application will be built around the approval.
The rules are under review. A tightening of the Lex Koller was put out for consultation in 2026, so confirm the current text with a Swiss lawyer before you commit a deposit.
In Switzerland the approval decides the loan, not the other way round: get the cantonal permit position clear before you spend money on bank fees.
What lenders ask of non-residents
There is no single published loan-to-value figure for foreigners in the sources we checked, and lenders set their own policy. As a working assumption, third-party advisers put the equity needed by non-residents at roughly 35-50% of the price, against about 20% for residents. Swiss banks also stress-test affordability at a notional rate well above the current contract rate, and they expect that no more than about a third of gross income goes on housing costs.
Two features of Swiss lending surprise newcomers. First, at least part of your equity must be "hard" cash rather than pension money, which residents can sometimes draw on and non-residents cannot. Second, many mortgages are interest-only on a first-ranking tranche and amortise the second tranche to two-thirds of value within 15 years.
If your income is in euros, dollars or sterling, some banks will lend in francs only, so you carry currency risk on your salary. Use the mortgage calculator to test a stressed payment before approaching a bank.
Mortgage types and the rate picture
Swiss products are simpler than elsewhere in Europe. Most buyers choose between a fixed-rate mortgage, typically for 5 to 10 years, and a SARON-linked mortgage that floats with the overnight franc rate. Fixed terms are the more common choice for non-resident holiday buyers who do not want surprises.
Because the franc is a low-rate currency, headline Swiss mortgage rates have historically been among the lowest in Europe, even after the recent rise. Quotes for a non-resident, however, usually carry a premium over the advertised rate for residents. We do not quote a figure here because rates move monthly and differ by bank, canton and your equity level; ask for a written offer rather than relying on a comparison site.
| Product | Typical term | Best for |
|---|---|---|
| Fixed-rate mortgage | 2-15 years | Buyers who want a stable payment |
| SARON mortgage | 3 years, floating | Buyers comfortable with rate movement |
| Interest-only first tranche | No amortisation | Holiday homes with a clear equity cushion |
| Second tranche amortisation | Up to 15 years | Required by most lenders above two-thirds of value |
Documents a Swiss bank will want
Expect a thorough file. Banks run their own checks on source of funds, so keep statements consistent with your tax returns.
| Document | Why it is requested |
|---|---|
| Passport and proof of residence abroad | Identity and Lex Koller status |
| Cantonal approval or exemption evidence | Confirms the purchase is lawful |
| Last two or three years of tax returns | Income verification |
| Recent payslips or accounts for the self-employed | Affordability test |
| Statements showing the equity | Source-of-funds checks |
| Sales contract draft and floor plans | Valuation |
| Land register extract | Encumbrances and servitudes |
From enquiry to keys: the steps
- Confirm with a lawyer that your profile and the target municipality allow a purchase.
- Ask two or three banks for an indicative offer, including whether they lend to non-residents at all.
- Sign a reservation, then apply for cantonal approval if required.
- Provide the full document file and get the property valued.
- Receive the binding mortgage commitment.
- A notary prepares and certifies the deed; the mortgage note (Schuldbrief) is created at the same time.
- Pay the balance, register the deed in the land register and collect the keys.
Allow two to four months. Cantonal approval is a large part of that time.
Alternatives if a Swiss lender says no
- Cash purchase. Many foreign holiday-home buyers pay in full, which sidesteps the permit-linked financing questions but not the approval itself.
- Home-country borrowing. A loan secured on property you already own elsewhere can fund the equity. Note that Lex Koller can treat foreign-lender financing above certain loan-to-value thresholds as an acquisition in its own right, so this needs legal review.
- Private bank lending. Wealth managers sometimes lend against a securities portfolio (a Lombard loan) with no mortgage on the Swiss property.
- Developer terms. Some resort developers offer staged payments, though far less commonly than in southern Europe.
Browse the market in our Switzerland listings, including apartments and houses, to set a realistic budget.
What a Swiss purchase costs on top of the loan
Budget for costs that differ by canton. Figures below are approximate; verify locally.
| Cost | Approx. range |
|---|---|
| Notary and land-register fees | 0.3-1.5% of price |
| Cantonal transfer tax | 0-3.3% depending on canton (some have none) |
| Mortgage note creation | Roughly 0.1-0.4% of the loan |
| Valuation fee | CHF 500-1,500 |
| Annual imputed rental value tax and wealth tax | Varies by canton |
Last updated 8 October 2026
Frequently asked questions
Can a non-resident get a Swiss mortgage at all?
Yes, but only after the purchase itself is permitted under the Lex Koller, and only from banks that choose to lend to non-residents. Expect a higher equity requirement and a longer file review than a resident would face.
How much deposit do foreigners need in Switzerland?
Advisers commonly quote 35-50% for non-residents, compared with about 20% for residents. There is no official published cap, so the number depends on the bank, your income and the property.
Can I use my pension to fund the deposit?
Swiss pension capital can be used by residents under specific schemes, but a non-resident generally cannot. Plan for the equity to come from savings, sale proceeds or other liquid assets.
Are Swiss mortgage rates really low?
They have historically been among the lowest in Europe, helped by the franc's low-rate environment, though they rose from earlier lows. Non-residents may be quoted a premium, so get a written offer from each lender.
Do I need to borrow in Swiss francs?
Usually yes. Banks lend against a franc property in francs, which means your salary in another currency creates exchange-rate risk. Consider how a stronger franc would change your payment.
Is Lex Koller about to change?
A tightening was proposed and put to consultation in 2026. The final shape was not settled when we checked, so confirm the position with a Swiss lawyer. For a wider overview read our Switzerland market analysis.