Mortgage for a vacation home
Other lending criteria
The dream of owning a Holiday home in the mountains, a Holiday condominium by a lake, or a rustico in Ticino is appealing to many people. However, financing a Holiday property differs significantly from financing a primary residence.
Stricter Financing Rules
Vacation Properties
From the perspective of most mortgage lenders, a holiday condominium or holiday home is not considered essential residential property. As a result, financing is approached with greater caution. While a Loan-to-value ratio of up to 80% is often possible for an owner-occupied home, many mortgage lenders require significantly more equity for holiday properties.
Typical requirements include:
- At least 35% of own funds
- In some cases, 40% to 50% of own funds
- Higher income and net worth requirements
- Stricter affordability assessment
However, requirements vary significantly depending on the property, region, and personal circumstances.
Our best offer
Can be finalized directly on our platform
| Kurzfristige Hypotheken | |
|---|---|
| SARON Marge | 0.75 % |
| Fest 1 Jahr | 0.91 % |
| Fest 2 Jahre | 0.99 % |
| Fest 3 Jahre | 1.01 % |
| Fest 4 Jahre | 1.06 % |
| Mittelfristige Hypotheken | |
|---|---|
| Fest 5 Jahre | 1.11 % |
| Fest 6 Jahre | 1.17 % |
| Fest 7 Jahre | 1.16 % |
| Fest 8 Jahre | 1.21 % |
| Fest 9 Jahre | 1.27 % |
| Langfristige Hypotheken | |
|---|---|
| Fest 10 Jahre | 1.32 % |
| Fest 11 Jahre | 1.36 % |
| Fest 12 Jahre | 1.40 % |
| Fest 13 Jahre | 1.65 % |
| Fest 14 Jahre | 1.68 % |
| Fest 15 Jahre | 1.71 % |
Information on the best mortgage rates from HYPOTHEKE.ch
The rates on our Mortgage platform are updated hourly by our Mortgage lenders. The “starting at” rates / top rates displayed here are offered by at least one provider on HYPOTHEKE.ch. These represent the best possible Mortgage interest rates currently available. Individual rates ready for closing depend on various parameters such as Loan-to-value ratio, Affordability, property value, region, and other factors, and may differ from the rates displayed here.
Maximum
Maximum Mortgage for a Holiday Condominium
The maximum Mortgage amount depends on various factors:
- Property value
- Location
- Income
- Assets
- Existing Mortgages
- Buyer's age
- Property type
Many mortgage lenders will finance vacation properties only up to a Loan-to-value ratio of 60% to 70%. If the vacation property is also classified as relatively luxurious, the maximum Loan-to-value ratio is often even lower. Good to know: Borrowers who can provide additional collateral, such as securities accounts or other real estate, often receive higher financing.
Frequently Asked Questions
Answers about vacation property mortgages
For vacation properties, the maximum Mortgage amount is usually between 60% and 70% of the property’s value. Some mortgage lenders will finance higher Loan-to-value ratios, but often require additional collateral or proof of assets in return.
No. Funds from a pension fund or Pillar 3a may generally not be used to purchase a Holiday condominium or Holiday home. This option is available only for owner-occupied residential property intended for permanent residence.
In many cases, yes. From the mortgage lender’s perspective, vacation properties are considered riskier than owner-occupied residential properties. As a result, mortgage interest rates may be slightly higher, or stricter requirements regarding own funds and Affordability may apply.
To some extent. If a holiday condominium is rented out regularly and the income can be documented, some mortgage lenders will factor a portion of that income into the Affordability calculation. However, the rules vary significantly from lender to lender.
Holiday condominiums in established tourist regions such as Graubünden, the Bernese Oberland, Valais, or Ticino are often easier to finance than properties in remote areas. The key factors are the property’s marketability and resale potential.
Luxury real estate is often financed with greater caution. Many mortgage lenders require higher Own funds and lower Loan-to-value ratios. In addition, the definition of luxury real estate varies from provider to provider.
In addition to the costs of the vacation property, the living expenses for the Main Residence are also taken into account. Mortgage interest, Maintenance costs, ancillary costs, and existing financial obligations are all factored into the affordability calculation.
Absolutely. The differences in mortgage interest rates, down payment requirements, and contract terms are often significant. By comparing multiple providers, you can save a lot of money over the term of the mortgage.
You’ll usually get the best terms by comparing different banks, insurance companies, and other mortgage lenders. Mortgages for vacation properties can be found through mortgage platforms.
Yes. Through HYPOTHEKE.ch, you can compare financing options for holiday condominiums and holiday homes across numerous Mortgage lenders. This allows you to efficiently find suitable Mortgage lenders and attractive Mortgage rates.
Restriction
Retirement savings may not be used
An important difference compared to owning a home
As a general rule, funds from a pension fund or Pillar 3a may not be withdrawn early or pledged as collateral for holiday condominiums or holiday homes.
This means that the required own funds must come entirely from disposable assets. For younger buyers in particular, this is often the biggest hurdle when purchasing a vacation home.
How do I find the best Mortgage?
“A one-hour webinar packed with useful tips and information to help you choose the right Mortgage loan model and get the best interest rates.”
SPEAKER
Florian Schubiger
Founder of HYPOTHEKE.ch
Lower Loan-to-value ratios
Amortization for Vacation Properties
Stricter rules also apply to Amortization than they do for owner-occupied residential property.
Many mortgage lenders require that the Mortgage be reduced to about 50% of the property’s value within ten to fifteen years.
However, the exact requirements vary greatly from provider to provider.
Anyone looking to finance a vacation home should therefore not only compare mortgage interest rates but also carefully analyze the repayment terms and contract conditions.
Additional Factors
Affordability of a Vacation Home
When financing a holiday condominium or holiday home, the mortgage lender considers more than just the cost of the vacation property.
The costs associated with the Main Residence are also factored into the affordability calculation.
For example, the following are taken into account:
- Rent for the Main Residence
- Mortgage on your home
- Imputed interest
- Maintenance costs
- Existing obligations, such as leases, etc.
As a result, affordability requirements are significantly stricter than for a single owner-occupied property.
Get a mortgage in 3 steps
No need to make a tedious trip to the bank
1. Assess the situation
Accessible at any time, without interruption
2. Compare offers
Try it 100% anonymously and for free
3. Take out a Mortgage
Instantly and conveniently from the comfort of your couch
Get started now and get your final offer in 5 minutes
Additional Income
Rent Out a Holiday Home
Many homeowners rent out their holiday condominium or holiday home for part of the year. Regular and verifiable rental income can be factored positively into the affordability calculation by some mortgage lenders.
In practice, however, things are very different:
- Some providers count a portion of the rental income toward the loan
- Others do not take them into account at all or only do so for long-term leases
- Some mortgage lenders do not factor in rental income at all
That’s why it’s especially worth comparing different mortgage lenders.
When it comes to vacation properties, mortgage lenders’ financing guidelines vary significantly. If you only apply to one bank, you often miss out on the best options
Bernard Raja
Mortgage expert
Differences
Holiday condominiums, luxury properties, and rustic homes
Special caution is advised when dealing with luxury properties and collector’s items.
These include, for example:
- Rusticos in Ticino
- Alpine huts in Graubünden
- Chalets in remote regions
- Luxury apartments in tourist destinations
- Properties for special uses
Such properties are more difficult for mortgage lenders to appraise and, in the event of default, harder to sell. As a result, the maximum Loan-to-value ratio is often lower, and the financing requirements are stricter.
Conclusion
Find the best mortgage rates for vacation properties
Financing a vacation home is more challenging than financing a primary residence. Higher own funds, stricter affordability rules, and additional amortization requirements are standard.
Those who compare different mortgage lenders and plan their financing early on significantly increase their chances of approval and benefit from more attractive mortgage rates. This is why a comprehensive market comparison is especially worthwhile when it comes to holiday condominiums and holiday homes.