In addition to the above-mentioned documents, Swiss credit institutions usually require the party applying for a loan contract to produce exhaustive documentation relating to the property that the latter intends to purchase after the loan has been disbursed.
The documents required by the Swiss banks for the granting of a loan for the purchase of a property include the extract from the land register relating to the property, the condominium regulations if the property that the applicant intends to purchase is a flat, the building's insurance contract and the document certifying the status of the current mortgage loan; the bank will also require the plan of the property in good condition, together with the property's commercial documentation, i.e. photographs, descriptive documentation on paper or digital media and technical data.
Mortgage application procedure Switzerland
The preliminary investigation relating to the practice of applying for a loan for the purchase of a property in Switzerland usually begins with the meeting in which the applicant provides the Swiss credit institution with the required documentation.
At the meeting between the two parties, they will discuss the procedure for the loan application; following the meeting, in about 3 to 4 days, the bank will provide feedback to the interested party and decide on the loan application.
Following the positive resolution for the granting of the loan, the actual disbursement of the loan amount will take place in about 30 days on average, directly into the current account of a notary: the professional will then be able to proceed with the registration of the transfer of ownership, once all the expenses relating to the transfer have been paid.
Parties providing mortgage contracts in Switzerland
A particularly interesting aspect concerning the granting of credit in Switzerland, and in particular concerning the lenders in the country, is the fact that it is not only possible to conclude a loan agreement with banks; in Switzerland, loan agreements are also concluded with insurance companies.
If you are interested in purchasing a property in Switzerland, by relying on the professional advice of MDA International Realty, you can benefit from the contacts developed through consolidated collaboration with all the credit institutions operating in the Lugano and Mendrisio area.
By relying on our advice, we will help you to identify the best solution, based on your specific needs.
Mortgage application procedure in Switzerland
The purchase of a property is an operation that certainly requires a major financial commitment; this can be completed if you have the necessary liquidity to do so, or alternatively with the help of a mortgage contract application to be made with a Swiss bank or insurance institution.
Applying for a loan in Switzerland is undoubtedly an operation that brings numerous advantages: the procedure and the processing of the application are not at all complex, regardless of whether the applicant is a Swiss national or a cross-border commuter, who, being employed in Switzerland, will receive a salary in Swiss francs.
Many Swiss credit institutions offer those who wish to apply for a loan agreement the possibility of access to particularly popular and advantageous services. As mentioned in the preceding paragraphs, in order to apply for a mortgage with a bank or alternatively with an insurance institution, it will first be necessary to prepare and produce the specific documentation mentioned in the preceding paragraphs. Once the application has been submitted and the first meeting has been held for the preliminary examination of the relevant file, it will be necessary to wait for the necessary bureaucratic time before knowing the final outcome of the bank or insurance institution's resolution.
If the resolution is positive, the loan agreement will be disbursed in Swiss francs and the debt will have to be settled in the same currency. This will also save on fees.
The advantages of a mortgage in Switzerland
As mentioned above, applying for a loan in Switzerland has many advantages for holders of a Residence Permit or for those who decide to move to Switzerland; one of the main advantages is certainly the currency exchange, since the loan must be paid off in the same currency in which it will be disbursed, i.e. in Swiss francs.
The second advantage of applying for a mortgage in Switzerland is the interest rates applied to the contract. The interest rates charged by Swiss credit institutions for the granting of a loan contract are lower than the interest rates charged by credit institutions in European Community countries, with currency in euros.
A further advantage is that the applicant does not run any currency risks.
Mortgage in Switzerland for those taking up residence
Foreigners who take up residence in Switzerland are among those who have the easiest access to credit in order to obtain a mortgage contract from a Swiss credit institution for the purchase of a property, in addition to Swiss nationals; living and working in Swiss territory, they receive a salary in local currency and therefore the repayment of the debt will always be in the same currency without incurring exchange rate fluctuations or interbank costs that could increase the monthly instalment.
In order to obtain a loan from a Swiss credit institution, it will be mandatory to prove that you are working in Switzerland and not elsewhere. As mentioned above, the interest rates applied by Swiss banks and insurance institutions for mortgage contracts are on average lower, when compared to those applied for the same contracts by credit institutions in countries belonging to the European Community.
It will always be important, when applying for a mortgage in Switzerland, to take advice and guidance from experts in the field. Thanks to MDA International Realty's great experience and professionalism in the real estate sector and its collaboration with all the credit institutions in the Lugano and Mendrisio area, our company will be able to provide its clients with the appropriate support when applying for a loan to purchase a property. When applying for a mortgage in a country other than their country of origin, domiciled persons will be able to benefit from our advice and constant support.
