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The gate in the Parco Ciani, Lugano





A view of the Lago di Lugano from Melide.

Step 4 - Mortgage Shopping

To finance the acquisition you will probably need a mortgage. At the same time you will need a substantial amount of cash (between 30 and 50%) of the value of the property. The maximum amount of the mortgage is linked to the value stipulated in the bearer mortgage note ("Cartella Ipotecaria"). To get the best deal will require some shopping around.

To get some guidance the section "mortgages" on is very useful. As you can see from the graphic below (1-year "fixed") interest rates in Switzerland are very attractive. Keep in mind, however, that the Swiss Franc is a very strong currency which means that as the years go by, your expense in local currency (EUR, UKP, $, рубл) is likely to increase. Furthermore please be aware of the fact that the bank will typically request an amortization of 2% per year and mortgage interest rates for a holiday home will be slightly higher than those for a main residence.

Click HERE to view the current UBS mortgage rates.

It may also be desirable to be introduced to a local banker. In case you need assistance in this area please contact us (see footer).

In any case the bank will do a due diligence check and when you contact bankers you need to be prepared and have the following documents with you:

When the bank makes you an offer make sure you check the validity of the interest rate. I have seen it almost miraculously go up compared to what was quoted because of a very limited validity of the quoted rate.

Many documents will need to be signed as part of setting up your new Swiss bank account and the mortgage. Amongst others this will include a:

In addition you will need to submit: