A property purchase is financed with own funds (assets, personal savings, provident funds, etc.) and foreign funds from a lending institution.
Usually, banks require that the equity contribution represents at least 20% of the value of the property. In addition, the acquisition fees (approx. 5% in the canton of Vaud) cannot be borne by the mortgage loan and are therefore an integral part of the funds that the buyer must have at his disposal in order to carry out his purchase project.
When applying for a loan, the advisor analyses the financial situation of the future owner in order to determine his or her ability to acquire it, considering effective income, the amount of available equity and current debts, the professional situation, guarantees, pension assets, etc. In a second approach, the asset to be financed is analysed according to its value on which the loan will be based.
The financing conditions (duration, rate, depreciation, etc.) and the financial structure (contribution, tax aspects, pledge, etc.) must also be the subject of reflection and discussion between the lending institution and the future purchaser in order to find the optimal solution.
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Every situation is different, and every purchase project is unique. It is therefore highly recommended to compare the different products on the market, which vary considerably from one establishment to another.
However, the significant amount of time required for these steps and the complexity of the process can sometimes discourage future buyers in their approach. We offer our clients the opportunity to be in touch with our partners, specialists in mortgage financing, who take care of everything while taking a neutral look at the situation in order to find the best possible solutions.
Do not hesitate to contact us without commitment.