Owner Financing

The term owner financing denotes a practice in which the owner of real estate or other property provides a loan to a buyer. The buyer then uses the loan provided by the seller to purchase the seller's property.

For example, a real estate seller may provide a home buyer with a private loan with which to put down a down payment for the purchase their property. They may do this because they are struggling to find a buyer which meets the strict affordability requirements for bank mortgages, or because they want to collect interest on the loan.

More on this topic:
Swiss mortgage comparison
Guide to private loans in Switzerland

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Daniel Dreier is editor and personal finance expert at moneyland.ch.

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