The best mortgage for an expat in Switzerland is not the one with the lowest advertised rate. It is the cheapest lender that will actually accept your residence permit, your income and your plans to stay. On 5 November 2026, the lowest 10-year fixed rate we track was 1.56%, offered by a pension fund, not a bank. Pension funds and insurers are often the cheapest lenders, and often the most selective about who they lend to.
This guide explains, permit by permit, what you can buy, how much you need, which lenders fit which profile, and how to avoid the mistakes that cost expats the most.
Can expats get a mortgage in Switzerland?
Yes. If you live in Switzerland with a B or C permit, you can buy your own home and get a Swiss mortgage. What changes from one expat to the next is what you are allowed to buy, under the Lex Koller law on property purchases by foreigners, and how picky lenders will be.
The law looks at three things: your nationality, where you actually live, and what you will use the property for.
| Your situation | What you can buy without authorisation | How lenders usually see you |
|---|---|---|
| EU/EFTA national, B, C or L permit, living in Switzerland | Any property, like a Swiss citizen, including a home to let | Widest choice of lenders, especially with a C or a B permit |
| Non-EU national with a C permit | Any property, like a Swiss citizen | Treated like a Swiss resident |
| Non-EU national with a B permit | Your principal residence only: one dwelling, in your own name, never let, not even the parking space | Accepted by many lenders, but the most selective ones may decline |
| Non-EU national with an L permit | Nothing without a cantonal authorisation | Very few lenders; wait for your B permit |
| EU/EFTA cross-border commuter (G permit) | A secondary residence near your Swiss workplace, used by you, never let | Possible, with a narrower set of lenders |
| Living abroad, no Swiss permit | A holiday home in a tourist area, with authorisation and within a cantonal quota | Specialist territory: more equity, few lenders |
Two details matter more than most expats realise:
- UK nationals count as EU nationals only if they settled in Switzerland before 1 January 2021. Arrived later? You are treated as a non-EU national.
- Leaving Switzerland later does not force you to sell under current law. According to the Federal Office of Justice, a principal residence bought without authorisation can be kept when you move away. But a reform is on the table (see below).
The reform to watch. In April 2026 the Federal Council opened a consultation on a tighter Lex Koller. It would require non-EU B-permit holders to get an authorisation to buy their principal residence, and to sell within two years if it stops being their main home. The consultation closed on 15 July 2026. None of it is in force yet, and EU/EFTA residents and C-permit holders would not be affected. If you are a non-EU national on a B permit and you want to buy, the current rules are on your side today.
The rules every Swiss lender applies
Your permit decides which lenders will talk to you. Three rules then decide how much they will lend, and they are the same for Swiss and foreign buyers. They come from the Swiss Bankers Association guidelines, recognised by FINMA, and are summarised by UBS.
- 20% equity. You fund at least 20% of the property's market value yourself. At least half of that (10% of the value) must be "hard" equity: savings, securities, a gift or pillar 3a money. The other 10% can come from your pension fund (2nd pillar).
- Affordability: one third of gross income. The lender adds a theoretical interest rate of 5% on the mortgage, 1% of the property value for maintenance, and the yearly amortisation. The total must not exceed one third of your gross income, whatever today's real rate is.
- Amortisation down to two thirds. The part of the loan above 66% of the value (the "second mortgage") must be repaid within 15 years, or by retirement if that comes first.
Worked example: a CHF 1,000,000 flat
| Item | Amount |
|---|---|
| Minimum equity (20%) | CHF 200,000 |
| of which hard equity, at least | CHF 100,000 |
| Mortgage (80%) | CHF 800,000 |
| Theoretical interest at 5% | CHF 40,000 / year |
| Maintenance at 1% | CHF 10,000 / year |
| Amortisation of the second mortgage over 15 years | CHF 8,889 / year |
| Gross household income needed | about CHF 176,700 / year |
What this means for expats: the 5% stress test, not the 1.5% rate you will actually pay, sets your budget. Two levers move it. More equity lowers the loan and the theoretical cost. A second income in the household raises the ceiling, provided the lender accepts that income (see foreign income below).
Best mortgage lenders for expats, by type
The cheapest 10-year rates in Switzerland right now come from pension funds and insurers, not from banks. That is good news, with a catch: these lenders are often the most selective, and some lend only to their own members or in their region. The best lender for you is the cheapest one in the first rows of this table that accepts your file.
| Lender type | Cheapest 10-year rate we track (5 Nov 2026) | Strengths for expats | Watch out for |
|---|---|---|---|
| Pension funds | 1.56%asga Pensionskasse | Lowest rates on the market | Many lend only to members or in their region; strict on profile |
| Insurers | 1.63%AXA | Competitive on long fixed terms (10 to 15 years) | Criteria vary; some lend less than 80% of the value |
| Regional and cantonal banks | 1.68%Banque du Léman | Local knowledge, room to negotiate | Often prefer clients living in their canton |
| Big banks | 1.73%UBS | Process in English, used to all permit types | List rates are rarely the cheapest; negotiate |
| Online lenders | 1.77%Swissquote Bank | Low rates, fast process | Automated criteria: recent arrivals and foreign income often fall outside them |
Source: neo-hypotheque.ch rate database, 63 lenders tracked. Indicative rates published by lenders, not offers. Your rate depends on your file.
What the gap costs you. The median 10-year rate across lenders is 1.94%, the cheapest 1.56%. On a CHF 800,000 mortgage, that 0.38-point gap is about CHF 3,000 a year, or CHF 30,000 over ten years. Choosing the right lender is worth more than guessing where rates will go.
Our rule of thumb by profile:
- C permit or EU/EFTA national on a B permit, stable Swiss salary: every lender type is open to you. Start with pension funds and insurers, and use a bank offer as your benchmark.
- Non-EU national on a B permit: go to lenders who state they accept B permits before you sign a purchase contract. A refusal after signing is the costliest outcome.
- Recently arrived, foreign income or self-employed: a big bank or a broker who knows which lenders take complex files. Online lenders rarely fit.
- Cross-border commuter (G permit): a narrow set of lenders; ask a broker before you look at properties.
Fixed rate or SARON: which suits expats?
Let your likely length of stay pick the mortgage type, not a rate forecast. Breaking a fixed-rate mortgage early usually costs a penalty, so a 10-year fix only pays off if you expect to keep the property that long.
Where rates stand. The SNB has held its policy rate at 0% since June 2025, confirmed it on 24 September 2026, and decides next on 10 December 2026 (SNB decision, Admirals summary). With SARON close to zero, a SARON mortgage costs roughly the lender's margin, typically 0.6% to 1.3%
Over the past year the median 10-year rate rose by 0.17 points. Meanwhile the gap between the cheapest and the dearest lender never fell below 0.46 points in any month. Choosing the lender is a stronger lever than timing the market.
Which one for which expat:
- Staying 10 years or more, C permit or settled family: a long fixed rate costs more than SARON today, but locks your budget for a decade.
- Might leave within 3 to 5 years: a SARON mortgage, or a fixed term that ends before your likely departure. Avoid a 10-year fix you may have to break.
- Not sure: split the loan into two or three tranches with different maturities, for example part SARON and part 5- or 10-year fixed. You keep some certainty and some flexibility.
Foreign income, foreign assets and pension money
This is where expat files most often stall. The rules above are the same for everyone, but the way lenders count your money is not.
- Income paid in a foreign currency. A Swiss mortgage is in Swiss francs. If part of your income is in euros or dollars, many lenders count it with a discount, and some leave it out. Get your lender's position in writing before you rely on it for affordability.
- Bonuses and variable pay. Lenders usually look at several years of history and count only part of it. Your fixed salary carries the file.
- Equity held abroad. It counts, but it must reach a Swiss account before the notary signing, with proof of where it came from. Plan the transfer early: the exchange rate on the day you convert moves your budget, and banks' currency margins add up on a six-figure sum.
- Pillar 3a. It counts as hard equity and can be withdrawn in full for your own home, according to UBS.
- Pension fund (2nd pillar). It can cover up to 10% of the value. The minimum withdrawal is CHF 20,000, you can withdraw at most every five years, a full withdrawal is possible only until age 50, and your spouse must agree in writing. The withdrawal is taxed, and the money goes back to the pension fund if you sell.
Expat warning on pension money. Using your 2nd pillar lowers your retirement savings and your insurance cover. If you might leave Switzerland, check first how a withdrawal interacts with the cash-out rules for your destination country. Use savings and pillar 3a first when you can.
Tax changes buyers should know
Switzerland will stop taxing the imputed rental value of owner-occupied homes on 1 January 2029. The Federal Council set that date on 1 April 2026, after voters approved the reform in September 2025 (law.ch).
- Until the end of 2028: nothing changes. You declare the imputed rent as income and deduct mortgage interest and maintenance costs.
- From 2029: no more imputed rent, but also no more deduction of maintenance costs on your own home. Mortgage interest becomes deductible only in proportion to property you rent out.
- First-time buyers keep a temporary, capped interest deduction that declines over the first years of ownership.
What it changes for your mortgage strategy. Keeping a large mortgage to maximise the interest deduction stops making sense for most owners from 2029. Indirect amortisation through pillar 3a keeps its 3a tax deduction, but loses part of its appeal. If you buy now, plan for repaying debt faster after 2028, and finish planned renovations by the end of 2028 if you want to deduct them.
How to get the best expat mortgage, step by step
Get financing confirmed before you sign anything. In Switzerland the purchase is signed before a notary, and a refused mortgage after a reservation can cost you the deposit.
- Check your status on the day you will sign. Permit, nationality and intended use decide what you may buy. A permit renewal or a C permit due soon can change the picture.
- Prepare your file once. Residence permit, employment contract (past probation if possible), last three payslips, salary certificate or tax return, proof of equity and its origin, pension fund statement, debt collection register extract, and the property documents.
- Compare lender types, not just banks. Ask at least one pension fund, one insurer and one bank. The cheapest lender that accepts your profile is your target.
- Match the term to your plans. If you might leave within five years, a 10-year fixed rate can cost you an early-repayment penalty when you sell. Split the mortgage into tranches if your horizon is uncertain.
- Negotiate, then sign. Published rates are a starting point; a strong file gets better terms.
- Set a reminder 12 to 18 months before maturity. Renewal is when most owners overpay, because they simply roll over with their current lender.
Why an independent broker helps expats most
A broker earns their keep on the files that do not fit the standard box: a B permit, foreign income, a recent arrival. They know which lenders accept which profiles, so you avoid collecting refusals.
neo-hypotheque.ch is an independent marketplace of more than 50 certified mortgage brokers across Switzerland. Compare their profiles and reviews, choose an English-speaking advisor, and get offers from banks, insurers and pension funds in one go.
FAQ
Can I get a mortgage in Switzerland with a B permit?
Yes. EU/EFTA nationals on a B permit can buy like Swiss residents. Non-EU nationals on a B permit can buy their principal residence without authorisation, as long as they live in it and do not let it. Lender acceptance varies, so compare before you sign.
How much deposit do expats need?
The same as Swiss buyers: at least 20% of the property value, of which at least 10% from savings, gifts, securities or pillar 3a. The other 10% can come from your pension fund.
Can non-residents get a Swiss mortgage?
Only in limited cases. Without a Swiss residence permit, you need a cantonal authorisation to buy a home, in practice a holiday home in a tourist area within a yearly quota. Few lenders finance these purchases, and they ask for more equity.
Fixed-rate or SARON: which is better for expats?
It depends on how long you will stay. A fixed rate gives budget certainty but can trigger a penalty if you sell early. A SARON mortgage follows the money market and is easier to exit. Many expats split the loan between the two.
Do I have to sell my home if I leave Switzerland?
Not under current law. A principal residence bought without authorisation can be kept after you move away. A reform under discussion would require non-EU B-permit holders to sell within two years, but it is not in force.
Can I rent out my Swiss home?
EU/EFTA nationals living in Switzerland and C-permit holders can. Non-EU B-permit holders cannot let the home they bought as a principal residence, not even part of it or the parking space.
Is a mortgage broker worth it for expats?
Usually yes, especially with a B permit, foreign income or a recent arrival. A broker knows which lenders accept your profile and compares banks, insurers and pension funds for you.
Sources
- Buying property in Switzerland as a foreigner: the Lex Koller explained, ibani, updated 26 October 2026 (citing the Federal Office of Justice)
- The amount of equity you require to buy a house, UBS, 25 February 2026
- Systemwechsel: Eigenmietwert fällt per 1. Januar 2029, law.ch, 2 April 2026
- Mortgage rates and 12-month history: neo-hypotheque.ch database of indicative rates from 63 lenders, read 5 November 2026