Buying property in Switzerland: View homes with a head start.

Because sellers usually choose the buyer whose financing is already framed. Knowing your real budget avoids pointless viewings, and approval in principle makes your offer credible. Without it, a bank answer often takes several weeks, during which the property can go.

For a main home, typically 20% of the price, including at least 10% hard equity outside the occupational pension (savings, securities, pillar 3a, gifts). Purchase costs, often 1.5% to 5% depending on the canton, are paid on top, outside the mortgage.

With 20% equity, banks calculate costs of about CHF 58,900 a year (notional 5% interest, amortisation and 1% maintenance). These must not exceed about a third of income, so you need gross income of around CHF 173,000 a year. More equity lowers that figure.

A lender’s written indication that it is prepared to finance your project up to a given amount, based on your file. It remains subject to the property valuation and final checks, and how long it stays valid depends on the lender. It is not a binding offer, but it shows the seller that your financing is serious.

For approval in principle: ID or residence permit, a recent debt enforcement register extract, your last three payslips and salary certificate (self-employed: last three financial statements), latest tax return, bank and securities statements, occupational pension certificate and pillar 3a statements. Once the property is found: sales brochure, plans, land registry extract and, for an apartment, the condominium rules.

Your bank only offers its own products. An independent adviser presents the same file to several lenders (banks, insurers, pension funds), finds those that accept your profile and compares real offers. If your bank makes the best offer, you can stay with it.

The first meeting is at no cost and with no obligation. If you decide to give a mandate, the adviser gives you a quote before any commitment.

Not necessarily. Selling first secures your equity, but you may be left without a home. A sale-conditional offer, or bridging finance, can sometimes chain the two. Also count net sale proceeds: property gains tax, brokerage and early repayment penalties reduce the equity available. An adviser helps you choose by canton, timing and lender.

A main residence can use pension assets, typically with 20% equity. A second home needs more equity and cannot use pension assets. An investment property is also judged on retained rents. The calculator applies these rules according to use.