Notes for property purchase in Switzerland
Lenders in Switzerland will only issue loans if thery are supported by a minimum requirement of proof of income and this can include income from renting your property out.
Your Swiss home loan lender will be base your circumstances on their lending criteria which takes into your monthly outgoings and whether you can afford your new mortgage. All of your financial responsibilities will be considered, including credit card debts, maintanance payments and bank loans. The lender will want to feel confident that you will still have 70% of your net monthly income to spare.
If you are employed you will need to offer three months worth of bank statements and or paystatements. You will also need to show an employers reference and at least three month's of personal bank statements.
If you are self employed you will need to show copies of the last years business statements and at least another 3 months personal bank statements. You may also need to show at last two years audited accounts. The maximum mortgage loan should not exceed 80% of the market value of the property. The bank will decide the value of the property.
You should ensure that your will have full title to the property on completion. Not all Swiss lenders carry out vauluations/surveys and if you want one you may have to arrange this independently. It is advisable to secure the financing of the property before signing up and the bank will require some proof of this.
You will be able to sign a clause in the contrat with a "subject to mortgage finance" in the contract but once it is signed you will expected to hand over about 10% of the purchase price and you will lose this if you pull out.
A life assurance policy will normally be requested depending on the lender's credit policy however, you will be expected to take out a fire insurance policy. You will be expected to have a Swiss bank account and will need to be in Switzerland for the signing of the fund release.
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