Legal Basis
How do I take out a mortgage? A step-by-step guide
Buying a property is a complex undertaking that gains in security and predictability through a structured approach. From the first budget check to long-term term management, a clearly defined process ensures that financing remains stable not only at the time of purchase, but throughout the entire duration.
hypothek.ch
16.12.2025
2 min
Preparation: Budget Planning and Collecting Documents
Taking out a mortgage is most reliable when approached in a structured manner. First, clarify your budget, own funds, and affordability. Here, you check how much equity is available, what the loan-to-value ratio will be, and whether the annual burden of imputed interest, amortization, and maintenance will remain sustainable in the long term. At the same time, gather documents on income, taxes, assets, as well as property documents such as sales brochure, land register excerpt, floor plans, and building description.
Offer Phase: Appraisal and Strategy Selection
In the next step, you request offers. The bank or broker appraises the property, determines the lending value, and creates proposals for the interest model, term, and amortization plan. You decide whether a fixed-rate mortgage, a SARON tranche, or a combination is a better fit, and whether repayment will be direct or indirect. During this phase, you negotiate interest rates, margins, period lengths, and contract clauses.
Legal Safeguarding and Disbursement
Next, the legal securities are prepared. The mortgage note is created or, if already in existence, transferred to the buyer's side and pledged in favor of the bank. The purchase agreement is notarized, and the disbursement prerequisites are checked, such as proof of own funds, insurances, and the absence of outstanding encumbrances. Only once all conditions are met will the mortgage be paid out and the transfer of ownership in the land register be completed.
Term Management and Follow-up Financing
After disbursement, the term of the mortgage begins. Interest is due as per contract, and is periodically adjusted for SARON products. The mandatory amortizing portion is gradually reduced until the loan-to-value is back to around two thirds. Before the end of a fixed term, review your follow-up financing, compare offers again, and, if necessary, adjust your interest strategy to the market, life plans, and investment needs.
You may also be interested in
Legal Basis
What is the difference between a purchase commitment and a purchase contract?
A purchase commitment is a less binding preliminary stage or a reservation agreement that documents the intent to buy and is often associated with a small, time-limited deposit. It secures the property for the interested party for a defined period under agreed conditions, but it does not replace the notarially executed purchase contract. It is legally binding only to the extent of the agreed clauses; ownership is not transferred by it, and the entry in the land register remains unchanged.
16.12.2025
1 min
Legal Basis
What is a Schuldbrief and what is the land register?
A Schuldbrief (mortgage certificate) is a security instrument or registry entry that documents a monetary claim and at the same time is secured by a real security right on a property. In Switzerland there are paper Schuldbriefe and register Schuldbriefe. The register Schuldbrief is standard today; it exists only as an entry in the land register and can be transferred or pledged more easily. Banks have Schuldbriefe pledged or assigned in favor of their claims to secure mortgage loans.
16.12.2025
2 min
Legal Basis
How is a mortgage agreement structured?
A mortgage agreement in Switzerland governs the loan that is secured by a real-estate lien on a property. Core elements are the parties, the loan amount, the purpose of the financing and the securities. Security is usually provided by a Schuldbrief (mortgage deed) that is pledged or assigned in favor of the bank; disbursement normally only takes place after the corresponding entry in the land register. The agreement additionally contains conditions for disbursement, such as proof of own funds, insurance cover and the complete notarization of the purchase transaction.
16.12.2025
2 min