Checklist for buying a property in Switzerland

1. Define your needs

Before taking further steps, start by addressing two fundamental questions: Is purchasing a home the right decision for your current life situation? And what requirements should your dream house meet?

Buying a house comes with significant costs and considerable effort, as you’ll discover in this guide. Unlike renting, homeownership protects you from unexpected lease terminations, but it also entails greater responsibilities for repairs and maintenance.

You should also think about what’s most important to you in a house. How large should it be? Do you want a garden, a school within walking distance, or good public transport connections? The tax rate in your future community and the condition of the property might also influence your decision. Consider all these factors and create a priority list.

2. Clarify financing

The first step is to determine whether buying a house is financially feasible for you. Fortunately, you don’t have to cover the entire purchase price on your own. In Switzerland, it’s common to take out a mortgage to purchase a property with the help of borrowed capital.

Typically, you’ll need to finance at least 20% of your new home yourself. This equity can come from your savings, investments, or pension fund assets (though funds from your pension account may only make up half of your equity at most).

Up to 67% of a property can be financed with a first mortgage, and an additional 13% can be covered with a second mortgage. In this setup, the bank lends you money, using your new house as collateral. You then pay interest on this debt annually and amortize the second mortgage within 15 years.

Whether the bank grants you a mortgage depends on the affordability calculation. This process evaluates whether you are financially stable enough to manage such a significant investment. There are notable differences between providers – not only in terms of interest rates but also in the mortgage models they offer.

Keep in mind that buying a house comes with various additional costs. These should also be included in your budget. But that’s not all: as a homeowner, you won’t have to pay rent, but other regular expenses will arise, such as utilities, maintenance costs, and reserves for major renovations.

3. Property search

Once you’ve clarified your needs and financing, you can start looking for the right house. With our ImmoScout24 app, you can conveniently search for suitable properties anytime, even while on the go.

4. House viewing

If you’re interested in a house, schedule a viewing. This step is crucial because a house often looks different in person than it does in photos. During the visit, make sure to check the condition of the house, whether it offers enough space, and if the surrounding area meets your expectations.

Also, ask the current owners about their reason for selling. Feel free to be critical and request the building plans and land register extract if necessary. A quick meeting with the neighbours can also be worthwhile to see if you’d get along. Ideally, visit the house several times to view it under different lighting conditions.

5. Have the purchase price evaluated

Before making such a significant investment, it’s essential to verify whether the purchase price is justified. You can have the market value assessed by professionals. Key factors include the condition of the property, its location, and the current market situation.

6. Review the purchase contract and have it notarised

You're almost there: it won't be long before you can pack your moving boxes and move into your new home! However, before that, the draft contract prepared by the notary must be thoroughly reviewed. Are both the buyer and the seller in agreement with the details? And is everything covered to avoid any oversights?

Pay special attention to ensure that the condition of the property is clearly outlined, and that the responsibility for costs is explicitly stated. The more details mentioned in the contract, the fewer misunderstandings will arise later. Once both parties are in agreement, the purchase contract can be signed at the notary's office.

7. Consider fees and taxes

There are several one-time costs associated with buying a house. These include, for example, the property transfer tax, land register fees, and notary fees. Depending on the situation, payments to the real estate agency may also be due. You should factor in these expenses during your budget planning and when reviewing the purchase contract, but they will only be payable upon the conclusion of the contract.

8. Land register entry

The land register records the exact boundaries of the property, buildings, and roads, as well as all details regarding the mortgage and easement. Once the transfer of ownership is registered in the land register, your house purchase is official.

Congratulations, the property is now yours! In most cases, your bank will now automatically trigger the payment to the seller. With that, the house purchase is complete, and you can begin planning your move.