Financing · Swiss banking criteria

How much can you buy in Geneva?

Three figures are enough. The calculator applies Swiss banking criteria — and Geneva purchase costs — to answer you immediately, before you even view a property.

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You can aim for up to

Equity First-rank mortgage Second rank — to be repaid within 15 years
Mortgage
Purchase costs (≈ 4%)
Affordability ratio (max 33%)
Your monthly payment at /mois
See the bank's calculation in detail

Theoretical rate, loan-to-value, second pillar, mortgage certificate: every property financing term, explained

An indicative calculation based on usual Swiss banking criteria — with no obligation. The charge used by the bank: theoretical interest at 5% + repayment of the second rank (15 years) + maintenance at 1% of the price + existing commitments. The loan-to-value ratio decreases with price (80% up to around 3 million, lower above — high-end practice). A second-pillar withdrawal is possible only for a main residence.

A broker checks your financing, free of charge.

Rates actually negotiated, the best structure for your equity (second and third pillar, pledging), the exact costs for your situation — including Casatax relief if you qualify. An answer within 24 hours.

20%

Minimum deposit

of equity, of which at least 10% must be \"hard\" — outside the second pillar. Above roughly 3 million, banks reduce the loan-to-value ratio: expect a deposit of 25 to 45% depending on the price.

5%

Theoretical rate

applied by banks to test your file, whatever the actual market rate. This is the Swiss stress test.

33%

Affordability ratio

of gross income: the ceiling for theoretical annual charges (5% interest + repayment + 1% maintenance).

≈ 4%

Costs in Geneva

registration duties (3%), land registry and notary — paid on top of your equity. The Casatax scheme reduces duties for a main residence under roughly CHF 1.4 million.

Frequently asked questions about financing in Geneva

What conditions must you meet to obtain a Swiss mortgage?

Two tests decide everything: equity and affordability. You must provide at least 20% of the price as equity, of which 10% must be \"hard\" (outside the second pillar). And the theoretical annual charge used by the bank — 5% interest, repayment of the second rank, 1% of the price for maintenance — must not exceed 33% of your gross income.

Why does the bank calculate at 5% when actual rates are lower?

It is the long-term theoretical rate, a stress test: the bank checks that you could still meet your charges if rates rose durably. Your actual monthly payment is calculated at the market rate — SARON or fixed — and is generally well below the theoretical charge.

What are the property purchase costs in Geneva?

Allow roughly 4% of the price: 3% registration duties, land registry fees and the notary's charges, plus the creation of mortgage certificates where needed. These costs are paid on top of your equity — the mortgage never covers them. For a main residence under roughly CHF 1.4 million, Geneva's Casatax scheme reduces the duties considerably.

Can I use my second-pillar pension to buy?

Yes, for a main residence only — either as an early withdrawal or as a pledge. But at least 10% of the price must come from equity outside the second pillar: savings, third pillar, securities, a gift or an advance on inheritance. Pledging (using the assets as security without withdrawing them) preserves your pension cover and can be more efficient for tax.

What is second-rank repayment?

The portion of the mortgage exceeding two thirds of the property's value (the \"second rank\") must be repaid within fifteen years at most, or before retirement age. Repayment may be direct (you pay the bank) or indirect (you fund a pledged third-pillar account) — indirect is often more tax-efficient in Geneva.

How is a luxury property financed in Geneva?

Differently from ordinary residential property. Above roughly 3 million, banks reduce the loan-to-value ratio — 70 to 75%, then 60 to 65% above 6 million, and often 50 to 60% for exceptional properties: the pool of buyers is narrower and the bank's valuation more prudent than the asking price. That calls for equity well above 20%, and the financing is frequently structured through a private bank (portfolio pledge, Lombard loan). This is exactly where a broker makes the difference.

Rousseau 5 — Estate agency, Geneva Left Bank

Rousseau 5 has been the high-end estate agency specialising in residential property on Geneva's Left Bank since 2012. Villas, apartments, penthouses and off-market opportunities — every mandate is handled by a dedicated broker with precise knowledge of Cologny, Champel, Chêne-Bougeries, Collonge-Bellerive, Vandœuvres and the whole lakeside area.

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