Switzerland: Mortgages

How much can I borrow and what proof of income is required?

All loans need to be supported by a minimum requirement of proof of income (income arising from renting your property will be included in your income) i.e. if employed - copies of your last three month's payslips/Employer’s Reference together with copies of your last 3 month’s Personal Bank Statements will be required or alternatively if you are self-employed - copies of your last two years Audited Accounts and copies of both your last 12 month's Business and last 3 month’s Personal Bank Statements will be required on application.

Your loan is based on your joint net “take home” pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans, credit cards (if the balance is not cleared on a monthly basis) and any maintenance – ie. Divorce - payments together with your proposed Swiss mortgage payments should not exceed 30% of your net income.

Maximum mortgage loan shall not exceed 80% of the market value of the property. The market value is determined by the bank (either internally through its own experts or externally through independent experts).

Example:

Net joint monthly income £4,000 times 30% of that figure is £1,200, minus existing monthly mortgage payment £300 – No other liabilities. This leaves a balance of £700 for a proposed French mortgage payment.

© Conti Financial Services Limited 2006

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For information and advice on overseas mortgages and residential finance in over 30 countries, contact Conti Financial Services Ltd on www.mortgagesoverseas.com