Personal equity
In general, the mortgage covers 80% of the purchase price or value of your real estate property. The remaining 20% is your responsibility: this is personal equity. Transfer duties must also be added (communal and cantonal tax, registration fees at the land register, TVA, notary fees).
Example :
Value or price of a property | CHF 1,000,000 |
Financing | - CHF 800,000 |
Transfer fees* 5% | + CHF 50,000 |
Total personal equity | CHF 250,000 |
* Percentage varies from canton to canton
Under certain conditions, financial institutions may offer financing of more than 80% of the property's value.
For construction, the majority of banks include land transfer fees, construction credit interest (interim interest), and organisation costs for the mortgage note in the total cost.
Since the 1st of July 2012, 10% of personal equity must not come from pension funds or refundable loans.
Articles relating to personal equity
- Savings and investments
- The 2nd pillar (occupational retirement planning) and the 3rd pillar (restricted pension plan A)
- Life insurances (unrestricted pension plan B)
- Donations
- Third-party loans
- Increase in a friend or relative's debt
- Building lot
- Do-it-yourself work
- Lack of personal equity
- Should you invest all of your personal equity ?
- Withdrawing or using the LPP as collateral