Federal Council rejects additional home ownership support

The report and its mandate

The basis for the decision is postulate 23.4323, in which Parliament asked the Federal Council for a comprehensive overview of the existing and possible instruments to promote home ownership. The Federal Council approved the report "Promotion of Home Ownership: A Survey" on 18 September 2026. The analysis lists today’s support measures and examines whether an expansion would make sense. The conclusion is cautious: new subsidies or targeted support programs would not sustainably improve access to home purchases.

The arguments against an expansion

The report provides two main reasons why broader support is rated as “not very effective”.

Price-driving effect without increased supply: Additional purchasing power through government subsidies would lead to higher prices when the supply is tight. The report states: “If households have more money available to buy property thanks to government support, without more housing being created, this may further increase demand and thus prices.” In high-growth regions such as the greater Zurich, Geneva or Zug areas, such an effect would be strongest.

High fiscal effort: According to the report’s model calculations, supporting around 1,000 additional purchases per year would cost around one billion francs in the long term. The cost-benefit ratio is thus poor, as the measure would only cover a small part of the mortgages granted each year.

Initial situation: Home ownership rate slightly declining

According to the report, the home ownership rate in Switzerland is 35.7 percent (as of 2024) and thus tends to be slightly lower than a few years ago. Young families without inheritance or without early withdrawal from the second pillar have particular difficulty acquiring home ownership. The main barriers cited are the rise in property prices, the requirements for hard equity capital, and the affordability calculation.

Existing instruments remain in effect

Despite not introducing new programs, there are numerous instruments that buyers can continue to use.

• Advance withdrawal or pledge of the pension fund: Assets from the second pillar can be used for the purchase of owner-occupied residential property or pledged as collateral.
• Advance withdrawal of pillar 3a: Similarly, the assets of the tied pension provision can be used for acquiring home ownership.
• Increased maximum contribution pillar 3a: Employees with a pension fund can pay in up to 7,258 francs in 2026. For self-employed persons without a second pillar, the 20 percent rule and a higher maximum apply.
• Programs of the Swiss Foundation for Housing and Home Ownership Promotion (SFWE): Low-interest loans for cooperatives and individual property developers.
• Agricultural structural assistance loans: Interest-free investment loans for farm-based residential construction projects.
• Cantonal programs: Some cantons support first-time purchases with guarantees or loans, especially in rural areas.

Imputed rental value reform as a parallel construction site

At the same time as the survey, the reform of the taxation of owner-occupied homes is underway. From 2029, the imputed rental value for owner-occupied properties at the main residence is to be abolished. In return, the deductions for maintenance and interest on debt will largely also be dropped. A temporary mortgage interest deduction for first-time buyers is foreseen. In the current report, the Federal Council refers to this reform as an indirect relief, but does not classify it as a primary support instrument.

What the Federal Council is planning next

The report includes a minor adjustment: The Federal Council wants to streamline support in rural areas and reduce overlap between the SFWE and agricultural structural assistance. No new federal funds are linked to this adjustment. Further measures such as tax incentives for first-time buyers or an expansion of guarantees at the national level will not be pursued.

Classification

The decision confirms the line taken in recent years. The Committee for Economic Affairs and Taxation and Finma had already expressed caution regarding an expansion, as they fear false incentives in the mortgage market. For prospective buyers, the report means: the framework conditions remain as they are. Anyone wanting to purchase property must still prove 20 percent equity capital, at least 10 percent of which must come from outside the second pillar. And affordability will still be checked using a notional interest rate of around five percent. Sources: Federal Council press release, Baublatt.