EQUITY
Where can your 20% come from?
Bank savings, securities, a pillar 3a, a surrenderable life policy, a gift or an advance on inheritance all count as « hard » equity. You need at least 10% of the purchase price from these, with no exception since 2012.
The remaining 10% may come from your second pillar. Watch the ancillary costs: property transfer tax, notary fees and mortgage certificates come to between 1 and 5% of the price depending on the canton, and are never financed by the bank.
RATE STRATEGY
One tranche or several?
Splitting the mortgage into two or three tranches of different lengths avoids having to renegotiate everything at once. The price of that security: you stay tied to one lender for as long as a tranche is running.
Our rule of thumb: no more than two tranches below CHF 800'000, and never maturities less than two years apart.
TAX
Imputed rental value and deductions
As an owner you declare an imputed rental value as income and deduct your mortgage interest and upkeep costs. The balance between the two decides whether amortising quickly or slowly is in your interest.
Indirect amortisation through a pledged pillar 3a combines the deduction of your interest with the deduction of your pension contributions. Cantonal tax rules change the conclusion: the sums are done on your own tax return, not in theory.
RENOVATION
Financing energy-efficiency works
Heat pump, insulation, solar panels: increasing the mortgage is possible if the value of the property allows it. Several lenders offer a rate reduction on the « green » tranche.
Such works often qualify for cantonal subsidies and are tax-deductible as energy-related upkeep. The order of steps matters: the subsidy application must be filed before work begins.