Mortgage for young family

We are a young family with a big dream of buying our own home. What type of Swiss mortgage would you recommend to young families? Are there any special rules that apply to young couples?

Hi there,

A lot of attention has been given to mortgages for young families in Swiss media of late.

The reason for this is that interest rates are at their lowest point in years, making new mortgages much more affordable than they have been in a long time.

But there is a catch: Property prices have climbed, in part because investors have turned to property as a way of earning returns in the low interest environment. At the same time, the imputed interest rates used in determining whether borrowers are eligible for home loans emain unchanged at 4.5% or 5% (depending on the lender). So affordability requirements as just as strict as they were when interest rates were high.

As a result, young families which do not have a high income now actually have a harder time getting a mortgage approved than in the past.

All Swiss mortgage lenders provide loans to eligible families, but a number of lenders offer special family mortgages or discounts for families. However, these discounted mortgages are not necessarily the most affordable mortgages available. Make sure to compare interest rates and request multiple quotes in order to find the cheapest mortgage you can get.

Affordability requirements vary slightly between lenders. Banks ae usually more flexible in their affordability calculations than other lenders, and are more likely to provide a home loan to a young family. Some offer special entry-level mortgages with lower affordability requirements. Just note that lower elligibility requirements do not necessarily mean a cheaper mortgage. On the contrary: The most affordable mortgages are often accompanied by strict elligibility requirements.

Best regards from Moneyguru

More on this topic:
Interactive mortgage comparison
Mortgage affordability requirements
Family mortgages explained