Buying a home in Biel/Bienne or Neuchâtel, the costs to plan for
The asking price is never the final price. Equity, purchase costs and running costs decide whether your project holds up.
Whether you buy in the Seeland or on the Neuchâtel Littoral, the financing rules are the same throughout Switzerland. The costs added on top of the price, however, vary from one canton to another. It is better to know them before you make an offer.
Equity first
Banks generally ask for at least 20% of the purchase price in equity, at least half of which must come from outside the second pillar. Your 3a savings and your pension fund assets can top this up, provided they do not weaken your retirement provision. And the debt must be brought down to two thirds of the property's value within 15 years at the latest.
Purchase costs, specific to each canton
On top of the purchase come property transfer tax, notary and land registry fees, and the costs of the mortgage note. Their amount and any exemptions depend on the canton. Between Bern and Neuchâtel, the difference can run to thousands of francs for the same price. These costs are generally paid from your equity, on top of the 20%.
The costs that last
Banks check affordability using a notional interest rate, plus amortisation and maintenance. The total must not exceed one third of your gross income. On top of this come the imputed rental value and property taxes, which are also set by the canton and the municipality.
- Check feasibility before the first viewing.
- Work out the purchase costs for the canton concerned, not a Swiss average.
- Have several lenders compete for the mortgage.
- Keep a reserve for maintenance and the unexpected.
Our feasibility study is free. It tells you precisely what you can buy, in Biel/Bienne, in Neuchâtel or elsewhere in Switzerland.
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