Personal equity

Author : Kristen

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.

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