The magic formula for the best price

How to determine your equity?

Equity capital represents your personal financial resources. It includes your savings, your occupational and private pension assets, namely your 2^nd and 3^rd pillar funds, as well as any advance inheritance or donations.

To obtain financing, you must contribute at least 20% of the property's value from your own funds. By law, a minimum of 10% must come from your savings, while the remaining 10% may be drawn from your occupational pension assets.

How is the rest of your property financed?

Banks generally cover up to 80% of the property’s value through two mortgages: a first‑rank mortgage and a second‑rank mortgage.

The two portions are amortised differently. The first‑rank mortgage, which can cover up to 65% of the property value, does not have to be repaid in full. The second‑rank mortgage, representing roughly 13.4%, must be fully amortised within 15 years or before your retirement, whichever comes first.‌

Securing your financial future

The fundamental principle for assessing the financial viability of your property purchase is that your housing costs should generally not exceed 33% of your gross income. These costs include the theoretical interest rate of around 5%, amortisation, and property maintenance expenses.

This is known as the effort ratio, a key indicator used to determine the level of financing you can assume. It reflects the proportion between your annual housing costs (theoretical interest, amortisation, and property maintenance) and your total gross income.

For example, if your gross annual income is CHF 250,000, your total annual charges should not exceed CHF 82,500. Keep in mind, however, that acceptable limits may vary depending on your situation and the financial institution.

Ready to make the move?

Our experts guide you through every stage of your financing journey with a fully personalised approach, designed to bring clarity, confidence and peace of mind to your entire project.‌

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Episode #1

Buying a home: a winning decision

Let this series accompany you, step by step, on your journey to owning your primary residence.

Go to Episode 1

Episode #2

Knowing what you want

Building your own home is a major investment that deserves careful consideration of your needs and aspirations.

Go to Episode 2

Episode #3

Setting the right budget

Determine the maximum amount you can reasonably commit to acquiring your primary residence, taking into account your overall financial position.

Episode #4

The right financing for your project

From traditional mortgages to Lombard loans, explore the key features of fixed, variable and SARON-based interest rates.

Go to Episode 4

Episode #5

Understanding property taxes

Becoming a homeowner is a major milestone that comes with specific tax considerations. Purchasing a property involves a range of tax implications that should be carefully assessed.

Go to Episode 5

What our clients say about us.

Piguet Galland offered us a number of different scenarios to help us through this major change in life, retirement.
Happiness is knowing that I have someone who will bring their expertise to advise me and ensure my life is carefree.
At Piguet Galland, the human factor takes center stage. We genuinely listen to understand and provide solutions, not merely to sell."
I wanted to purchase and renovate a house through an auction, which required immediate payment. Fortunately, your company performed exceptionally well."
Piguet Galland is the financial partner that's close to my heart. I have complete trust in them. In this bank, you get to know them on a personal level, and that's of utmost importance."
The aspect of the Bank that resonated with me in the past and to this day is trust, which is conveyed through a sense of closeness and, most importantly, a dedicated point of contact."
What I value most about Piguet Galland is the service and the trust-based relationship I have built with the various advisors I have worked with over the past thirteen years, all of whom have consistently been excellent."
Throughout the years of building a trusting relationship with Piguet Galland, I have realized that a bank can be a lifelong partner for significant milestones."