Mortgage in Switzerland for U.S. Customers

Good morning,

We have dual citizenship (Swiss/U.S.) and would like to buy a condo in Glarnerland (our home town) to move into when we retire in 5 years.

In the meantime, we would rent the condo out, possibly to relatives.

Would you be able to help us to find a Swiss bank which would be willing to give us a 5-year mortgage?

Kind regards

Hi there,

There are a few Swiss banks which will accept mortgages on Swiss real estate from customers who reside outside of Switzerland. You can find a list of these banks here (in German).

Unfortunately, the vast majority of Swiss banks do not accept customers which are in any way associated with the United States of America. There are a few exceptions to this rule.

The Schaffhauser Kantonalbank (SHKB) for example, seems to accept customers who reside in the U.S. and has relatively low non-resident fees for customers who live in the U.S. According to SHKB representatives, the bank would consider accepting a mortgage on a property in the Canton of Glarus owned by a person with both Swiss and U.S. citizenship who resides in the U.S.

Naturally factors like the condition of the property, the borrowers ability to meet affordability criteria and the loan-to-value ratio (how much of the home's value you want to mortgage) all play a role. A good first step would be to contact the SHKB and other Swiss banks or consult with a reputable Swiss mortgage consultant and obtain as many non-binding quotes as possible in order to compare your options and get the lowest mortgage rate.

Best regards from Moneyguru

More on this topic:
Swiss mortgage comparison

Hello MoneyLanders,

I'm reviving this topic for the purpose of a follow-up question. Is anyone aware of which non-bank entities will issue mortgages to individuals afflicted by the blue (U.S.) passport? I am a dual US/German citizen and am wondering whether I should bother to shop around for mortgages issued by insurance companies and pension funds. 

Thank you very much.

Hi there,

Each pension fund has its own rules governing mortgage applications from US citizens. Some do not accept US citizens because they are not set up to deal with the administration involved. Others do accept applications from US citizens if the mortgaged property is in Switzerland and affordability criteria are met.

According to representatives from BVK, one of Switzerland's largest pension funds, BVK does not place special restrictions on US individuals.

Other pension funds, including Pensionskasse SBB and Pensionskasse Bühler, do not accept mortgage applications from US individuals.

Best regards from Moneyguru

I had the same question and asked quite a few pension funds about whether they had any restrictions on mortgages for US persons. These are personal replies to me so I don't stake everything on them, but they may point you in the right direction:

Aargauische Pensionskasse - no restrictions for US persons
BVK - no restrictions for US persons
Luzerner Pensionskasse - No restrictions for US persons
Pensionskasse Basel-Stadt - No special restrictions for US persons
Pensionskasse Bühler - Not possible
Pensionskasse Post - Not possible
Pensionskasse SBB - Not possible
Pensionskasse Thurgau - No restrictions for US persons
St.Galler Pensionskasse - Not possible

Hello, 

I'm interested in the same topic (getting a mortgage while residing in the US as a Swiss citizen) and I'm wondering if anyone has recent information to provide. I reached out to the Schaffhausen Kantonal bank and I'm waiting for an answer. I am from the French part of Switzerland and my German is rusty, though. Does anyone know of a bank or pension fund that will take "US Person" and has a French-speaking service? 

Thanks

I actually have same question as Seblegrand. One difference: I purchased my property in 2005 while living in Switzerland (wife Swiss/US citizen) and I am US citizen. In 2017 we moved to the USA at at this moment our bank/UBS said when current mortgage term ends, we cannot renew w/UBS due to living in the USA now. I renew in one year so looking for solutions for refinancing. Any advice/inputs welcome. 

This may have less to do with you falling under the notorious "US person" category and more to do with the difficulty in gauging the creditworthiness of non-residents as a whole. Swiss banks have to make sure that you meet affordability requirements on an ongoing basis, which means having a good picture of your income in relation to expenses and being able to access your credit history. That's hard for them to do when you do not live in Switzerland.

A possible option would be to try a regional bank in the are where your property is located, as they will likely be much more familiar with the local property market and may value a potential customer more than, say, a big multinational bank like UBS. It's worth a try.