When purchasing a property, the purchase price is typically financed through personal funds and a mortgage. How much equity is required and what financing options are available depend on your personal financial situation, the property, and the requirements of the respective financial institution.

Typically, the financing process proceeds in the following steps:

1. Assess
financial capabilities. First, you determine how much equity you have available and what monthly payment you can afford.

2. Determine
the financing framework A bank or other financial institution reviews, among other things, your income, assets, existing obligations, and the value of the property.

3. Apply
for a mortgage: Based on this assessment, a suitable mortgage financing plan is put together. Depending on your situation, different mortgage options may be available.

4. Financing approval
: It’s important to determine as early as possible before the purchase whether the desired property can be financed. A financing confirmation can be helpful during the closing process.

5. Purchase and Disbursement
Once the necessary contracts have been signed and all requirements have been met, the financing is made available for the payment of the purchase price.

Since every financing arrangement is unique, it is advisable to discuss the specific options early on with a bank or an independent financing specialist.

We are happy to assist you with coordination and, upon request, put you in touch with suitable financing partners.

Yes, in principle, you can sell a property even if there is still a mortgage on it. The existing financing must be taken into account during the sale process.

Depending on the situation, there are various options: For example, the mortgage can be paid off at the time of sale, transferred to a new property, or, under certain conditions, assumed by the buyer. Which option makes sense depends, among other things, on the type and term of the mortgage as well as your bank’s terms and conditions.

It’s important to clarify any early repayment penalties or costs associated with early termination well in advance. We’ll assist you in coordinating with the lending bank and take the existing financing into account when planning the sale.

Would you like to sell despite having an existing mortgage? We’ll work with you to clarify the most important points and guide you through the entire sales process.

What Happens to My Mortgage When I Sell My Home?

An existing mortgage generally does not prevent you from selling a property. When selling, there are various options for handling the financing. The best solution depends primarily on the term and terms of your mortgage, as well as your future plans.

1. The mortgage is paid
off The existing mortgage is repaid upon the sale. If you pay off a fixed-rate mortgage early, an early repayment penalty may apply. The amount depends, among other things, on the remaining term and the interest rates.

2. The mortgage is transferred
to a new property. If you purchase another property after the sale, it may be possible, under certain conditions, to transfer the existing mortgage to the new property. This requires the bank’s approval.

3. The buyer assumes the mortgage
. Under certain conditions, the existing mortgage can be transferred to the buyer. Requirements include the consent of the financing bank and the new owner’s ability to afford the payments.

Important: Discuss the options with your bank early on. This way, any potential costs associated with early termination can be factored into your sales planning.

Ponimmobilien is happy to assist you in coordinating the sale and will coordinate the process with you and the involved financing partners.

When purchasing a home to live in yourself in Switzerland, you generally need at least 20% of the property’s mortgage value as equity. The remaining 80% (maximum) can generally be financed through a mortgage.

Important: At least 10% of the down payment must come from funds that have not been withdrawn from or pledged as collateral against your occupational pension plan (2nd pillar). These include, for example, savings, securities, gifts, advance inheritances, or Pillar 3a account balances. Under certain conditions, funds from a pension fund may also be used.

Example: For a purchase price of CHF 1,000,000, you generally need at least CHF 200,000 in equity. Of this amount, at least CHF 100,000 must come from sources other than the 2nd pillar.

In addition to equity, the bank also assesses the affordability of the financing. Factors taken into account include income, mortgage interest, principal payments, as well as maintenance and ancillary costs. The specific requirements may vary depending on the bank and the property.

For vacation homes, investment properties, or specialized real estate, higher equity may be required, and different financing rules may apply.

Our tip: Have your financing reviewed before you start looking for a property, if possible, or at the latest before submitting a purchase offer. A financing confirmation provides clarity on your financial flexibility and facilitates the rest of the purchase process.

Can I buy a property even though my financing hasn't been definitively approved yet?

In principle, you can start looking for a property and even express your intention to buy before your financing has been definitively confirmed. However, you should clarify your financing as early as possible before making a binding offer to purchase.

During the financing review, the bank considers, among other things, your equity, your income, your financial obligations, and the value and characteristics of the desired property. A financing confirmation provides you and the seller with additional security.

When signing a reservation agreement or a purchase contract, you should pay particular attention to the terms that are agreed upon. A real estate purchase in Switzerland is notarized; for the final closing, binding proof of financing is required, such as an irrevocable promise of payment from the bank.

Our tip: If possible, have your financing reviewed before submitting a binding purchase offer. This way, you’ll know your financial flexibility and can present yourself to the seller as a well-prepared prospective buyer.

Ponimmobilien is happy to assist you in coordinating the necessary documents and the rest of the process.

A financing confirmation is a written confirmation from a bank or financial institution stating that financing for the planned real estate purchase has, in principle, been secured or reviewed. It provides the seller with important assurance that the prospective buyer has the necessary financial resources.

Typically, the confirmation is based on information regarding the desired property, the purchase price, the buyer’s equity, and the buyer’s financial situation. Depending on the bank and the specific circumstances, the format and scope of such a confirmation may vary.

A financing confirmation is particularly important when making an offer to purchase. It may, for example, cover the following points:

• the purchase price or financing amount

• the available equity

• the general affordability of the financing

• the planned mortgage financing

• the specific property, if applicable

For Ponimmobilien properties, a financing confirmation can be requested prior to a binding purchase commitment. This allows for a better assessment of a prospective buyer’s financial situation, and the rest of the sales process can be coordinated accordingly.

However, a financing confirmation does not necessarily replace the bank’s definitive loan and mortgage commitment. The respective terms and conditions of the financing institution are decisive.