How to become a homeowner?

The Mortgage: Financing your homeownership

The cornerstone of any property purchase, the mortgage, is a topic we will explore in greater detail in the near future. However, for today’s broader and more general discussion, it’s essential to establish the basics.
The financing of your property investment is structured as follows: the equity (your savings, as well as your professional and private pensions, 2nd and 3rd pillars) must represent at least 20% of the total cost of the property. Ten per cent of this equity cannot come from professional pensions and must therefore be provided in “cash.” Ultimately, your property will be financed through a mortgage, covering up to 80% (maximum).
You should also be aware that you are expected to demonstrate financial capacity. In other words, you must be able to cover your daily expenses while repaying your mortgage (mortgage interest, amortisation, maintenance costs, and additional charges). This may seem logical, but creating a realistic financial plan is indeed the first step to take. That said, don’t worry, we will delve deeper into mortgage amortisation in a dedicated article.

Equity: How to achieve it?

Now that we know it’s necessary to contribute at least 20% of the property’s value in equity, one question arises: how can I reach my savings goal? And more importantly: is it possible to purchase a property even if I have limited equity? Here are our 3 key pieces of advice.

1. Use your pension capital (2nd pillar) or pledge it
2. Use your 3rd pillar (if you have contributed)
3. Enquire about the possibility of receiving a donation from your family

Reduction of registration fees: Casatax

In the canton of Geneva, you can benefit from reduced registration fees, which will considerably reduce your purchase costs. All this is possible thanks to “Casatax”. To put it more clearly, this is a tax reduction of CHF 20,616 (in 2025), which is immediately deducted from the purchase costs, so there’s no need (for you, the future buyer) to disburse these funds. A bargain not to be missed, especially as registration fees on mortgage deeds are also halved.

But be careful. This reduction only applies to physical entities and cannot be claimed retrospectively. You should also be aware that the Casatax discount applies only to homes (villas, houses, etc.) costing up to CHF 1,374,396 (in 2025), and only as a main residence. In addition, the property must be occupied within two years of the signing of the sales contract. Finally, the buyer undertakes to make the property his or her principal residence for a minimum of 3 years, failing which the entire rebate will be returned.

But ultimately, why become a homeowner?

Approximately 40% of Swiss residents are homeowners, including about 20% in Geneva, and these figures are constantly evolving for several reasons. First, being a tenant means spending money every month on a property you don’t own. These are significant amounts you will never see again. Second, real estate transactions are very appealing, as Switzerland benefits from low mortgage rates. Another reason is that investing in property allows you to build a solid and profitable asset that will appreciate over time—the perfect way to secure your family’s future and that of future generations. Additionally, owning a home means you can personalise your property as you wish. Let your imagination run wild and turn your real estate dreams into reality!

Choosing your municipality: Carefully examine the options

You’ve made the decision to take the leap—you’re convinced that you want to become a homeowner! But which is the best municipality for you and your family? The canton of Geneva has 45 municipalities, plus 8 districts within the city of Geneva, each with its own distinct characteristics. At this stage, it’s essential to take stock and choose the ideal place to live, one that best meets your needs. You might be surprised to find that your final choice isn’t always the one that initially seemed so obvious.

Guidance from a specialist

A crucial point not to overlook: all the steps outlined above are filled with options. The choices you make at each stage could be decisive for the success of your property transaction. In this sense, consulting an expert broker familiar with the Geneva region is essential. They will be your guide throughout the entire process described in this article, helping you choose the ideal municipality and find the property that truly suits you. Furthermore, your broker will assist in preparing your file, getting it approved by financial institutions, and helping you secure the best mortgage rates.

Michael ORTIZ & Pascal VISCARDI