Housing Finance Policy

    Text bolded/green below shows notes and variable definitions when you roll over. If you cannot see the notes, please download an Excel version from the Research Center, which includes notes. Also, a PDF featuring variable definitions is available in the document list under "Definition of Hofinet Variables".

     

    A. Legal and Regulatory Framework

    A.1 Legal and Regulatory Framework
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Basis of the legal system: Civil, Common, Islamic, Other? (Describe)CivilCivilcivilA.1.1
    Are there specific laws that deal with mortgages? YesYesYesA.1.2
    Registration/Transfer of titles:A.1.3
    Does the law clearly define different types of property rights?YesYesYesA.1.3.1
     Are property rights easily transferable?YesYesYes
    Thomson Reuters
    		A.1.3.2
    Typical number of days needed for the transfer of title161616
    WDI
    		A.1.3.4
    Can liens be effectively enforced?YesYesYesA.1.4
    Is there specialized legislation covering:A.1.9
    Issuance of covered mortgage bondsYes  
    FINMA, Swiss Pfandbrief
    		A.1.9.1
    Issuance of RMBSNo  
    Thomson Reuters
    		A.1.9.2
    B. Housing Finance Subsidies
    B.1 Subsidies to Housing Finance Institutions
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Are there subsidized funding sources for mortgage lenders?Not availableNot availableNot available
     
    		B.1.1
    Special government lines of credit Not availableNot availableNot available
     
    		B.1.1.1
    B.2 Subsidies to Households
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Are there subsidies to households on housing finance?YesYesYes
    OECD
    		B.2.1
    Interest rate subsidies by special government fundsYes  
    OECD
    		B.2.1.1
    Mortgage interest deductibility from income taxYesYesYes
    UBS
    		B.2.1.5
    OtherYesYesYes
    OECD
    		B.2.1.6
    Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
    C. Taxation
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    What taxes apply to Residential Real Estate?C.1
    Tax on property (home-owners) YesYesYes
    Global Property Guide
    		C.1.1
    Property transaction taxes (purchase/selling)YesYesYes
    UBS, KPMG
    		C.1.2
    Tax on capital gains on property YesYesYes
    UBS, Global Property Guide
    		C.1.5
    OtherYesYesYes
    UBS, Global Property Guide
    		C.1.6
    Are there tax benefits on rental properties?YesYesYes
    Global Property Guide
    		C.2
    back to top | Country Data:
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: 15% for money market mortgages linked to LIBOR and 10% for adjustable-rate mortgages
    Notes: 165.18
    Notes: 4% for insurers, 1.5% for pension funds
    Notes: A landlord is able to deduct depreciation and other costs related to the rental property
    Notes: A landlord is able to deduct depreciation and other costs related to the rental property 
    Notes: Average lending rate on 10-yr fixed rate mortgage
    Notes: banks have self-adopted strict guidelines
    Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
    Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
    Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
    Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
    Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
    Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
    Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
    Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
    Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
    Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
    Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
    Notes: Corporate bonds
    Notes: Financing at below-market interest rates
    Notes: Generous rent control
    Notes: Generous rent control
    Notes: Homeowners can deduct loan interest payments from their income. Payments that apply to the principal and leasing costs do not apply
    Notes: Homeowners can deduct loan interest payments from their income. Payments that apply to the principal and leasing costs do not apply
    Notes: Homeowners can deduct loan interest payments from their income. Payments that apply to the principal and leasing costs do not apply
    Notes: Income generated from tenants is taxed at the federal, cantonal and municipal levels at their respective rates
    Notes: Income generated from tenants is taxed at the federal, cantonal and municipal levels at their respective rates
    Notes: Income generated from tenants is taxed at the federal, cantonal and municipal levels at their respective rates 
    Notes: Increase in online mortgage volumes and crowd-lending (where investors take on the role of investors)
    Notes: Infinite term mortgage loans are available in Switzerland
    Notes: Infinite term mortgage loans are available in Switzerland
    Notes: Infinite term mortgage loans are available in Switzerland
    Notes: Infinite term mortgage loans are available in Switzerland
    Notes: Infinite term mortgage loans are available in Switzerland
    Notes: Infinite term mortgage loans are available in Switzerland subject to certain criteria
    Notes: Infinite term mortgage loans are available in Switzerland subject to certain criteria
    Notes: Infinite term mortgage loans are available in Switzerland subject to certain criteria 
    Notes: Landlords are (1) able to deduct depreciation and costs related to the rental property, (2) subject to a tax on imputed rental value, but at a generous rate
    Notes: Landlords are subject to a tax on imputed rental value, but at a generous rate
    Notes: LTVs concentrated between 79-80%
    Notes: make up about 30% of the mortgage market and have varying degrees of government backing
    Notes: make up about 30% of the mortgage market and have varying degrees of government backing
    Notes: make up about 30% of the mortgage market and have varying degrees of government backing 
    Notes: makes up approx. 13% of outstanding mortgages (ECBC)
    Notes: Maximum LTV ratios for mortgages are not legally binding, but most banks have a policy that sets the ceiling at 80%
    Notes: Maximum LTV ratios for mortgages are not legally binding, but most banks have internal policies that set the ceiling at 80%
    Notes: Maximum LTV ratios for mortgages are not legally binding, but most banks have internal policies that set the ceiling at 80%
    Notes: Maximum LTV ratios for mortgages are not legally binding, but most banks have internal policies that set the ceiling at 80% 
    Notes: Maximum LTVs are not legally binding but internal policies of banks typically specify a ceiling of 80%
    Notes: Maximum LTVs are not legally binding but internal policies of banks typically specify a ceiling of 80%
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, includes non-urban areas
    Notes: National rate, percentage of tenants that pay market-price rent
    Notes: National rate, percentage of tenants that pay market-price rent
    Notes: National rate, percentage of tenants that pay market-price rent
    Notes: National rate, percentage of tenants that pay market-price rent
    Notes: National rate, percentage of tenants that pay market-price rent
    Notes: National rate, percentage of tenants that pay market-price rent
    Notes: National rate, percentage of tenants that pay market-price rent
    Notes: National rate, percentage of tenants that pay market-price rent
    Notes: National rate, percentage of tenants that pay market-price rent
    Notes: National rate, percentage of tenants with reduced/free rent
    Notes: National rate, percentage of tenants with reduced/free rent
    Notes: National rate, percentage of tenants with reduced/free rent
    Notes: National rate, percentage of tenants with reduced/free rent
    Notes: National rate, percentage of tenants with reduced/free rent
    Notes: National rate, percentage of tenants with reduced/free rent
    Notes: National rate, percentage of tenants with reduced/free rent
    Notes: National rate, percentage of tenants with reduced/free rent
    Notes: National rate, percentage of tenants with reduced/free rent
    Notes: No specific securitization legislation, though the general legal framework (Swiss Code of Obligations, general capital markets regulations) applies
    Notes: Percentage in 2018 based on 2017 IMF report stating that aside from fixed rate mortgages, the remaining share corresponds to money market mortgages linked to LIBOR and adjustable-rate mortgages
    Notes: PostFinance is part of Swiss Post, a state-owned shipping company. They offer savings accounts, retirement plans, and mortgage loans.
    Notes: PostFinance is part of Swiss Post, a state-owned shipping company. They offer savings accounts, retirement plans, and mortgage loans.
    Notes: PostFinance is part of Swiss Post, a state-owned shipping company. They offer savings accounts, retirement plans, and mortgage loans.
    Notes: PostFinance is part of Swiss Post, a state-owned shipping company. They offer savings accounts, retirement plans, and mortgage loans.
    Notes: PostFinance is part of Swiss Post, a state-owned shipping company. They offer savings accounts, retirement plans, and mortgage loans.
    Notes: PostFinance is part of Swiss Post, a state-owned shipping company. They offer savings accounts, retirement plans, and mortgage loans. 
    Notes: PostFinance is part of Swiss Post, a state-owned shipping company. They offer savings accounts, retirement plans, and mortgage loans.  
    Notes: Property transfer tax is generally paid by the purchaser
    Notes: Regulation under the Swiss Pfandbrief Act
    Notes: Subsidies for buildings that meet environmental certifications
    Notes: Taxes on inheritance/gifting; Income generated from tenants is taxed at the federal, cantonal and municipal levels at their respective rates
    Notes: The actual value is -0.07%
    Notes: The actual value is -0.07%
    Notes: The actual value is -0.13%
    Notes: The actual value is -0.13%
    Notes: The actual value is -0.14%
    Notes: The actual value is -0.18%
    Notes: The actual value is -0.21%
    Notes: The actual value is -0.25%
    Notes: The actual value is -0.25%
    Notes: The actual value is -0.25%
    Notes: The actual value is -0.25%
    Notes: The actual value is -0.27%
    Notes: The actual value is -0.31%
    Notes: The actual value is -0.32%
    Notes: The actual value is -0.36%
    Notes: The actual value is -0.99%
    Notes: The actual value is -1.03%
    Notes: The property tax rate ranges from 0.05 to 0.3% and is levied on the value of the home
    Notes: The property tax rate ranges from 0.05 to 0.3% and is levied on the value of the home
    Notes: The property tax rate ranges from 0.05 to 0.3% and is levied on the value of the home
    Notes: The property tax rate ranges from 0.05 to 0.3% and is levied on the value of the home
    Notes: The Swiss Bankers Association creates guidelines to set standards for estimating property valuations used for LTV-ratio calculations
    Notes: The Swiss Bankers Association creates guidelines to set standards for estimating property valuations used for LTV-ratio calculations
    Notes: The Swiss Financial Market Supervisory Authority (FINMA) makes amendments to SBA guidelines
    Notes: The Swiss Financial Market Supervisory Authority (FINMA) makes amendments to SBA guidelines
    Notes: There are companies that are owned or partially owned by state-owned cantonal banks. For example, Homegate AG is an online real estate marketplace, similar to Zillow, that offers mortgage loans. They are part of media group Tamedia AG and Zurcher Kantonalbank.
    Notes: There are companies that are owned or partially owned by state-owned cantonal banks. For example, Homegate AG is an online real estate marketplace, similar to Zillow, that offers mortgage loans. They are part of media group Tamedia AG and Zurcher Kantonalbank.
    Notes: There are companies that are owned or partially owned by state-owned cantonal banks. For example, Homegate AG is an online real estate marketplace, similar to Zillow, that offers mortgage loans. They are part of media group Tamedia AG and Zurcher Kantonalbank.
    Notes: There are companies that are owned or partially owned by state-owned cantonal banks. For example, Homegate AG is an online real estate marketplace, similar to Zillow, that offers mortgage loans. They are part of media group Tamedia AG and Zurcher Kantonalbank.
    Notes: There are companies that are owned or partially owned by state-owned cantonal banks. For example, Homegate AG is an online real estate marketplace, similar to Zillow, that offers mortgage loans. They are part of media group Tamedia AG and Zurcher Kantonalbank. 
    Notes: There are companies that are owned or partially owned by state-owned cantonal banks. For example, Homegate AG is an online real estate marketplace, similar to Zillow, that offers mortgage loans. They are part of media group Tamedia AG and Zurcher Kantonalbank.  
    Notes: There are companies that are owned or partially owned by state-owned cantonal banks. For example, Homegate AG is an online real estate marketplace, similar to Zillow, that offers mortgage loans. They are part of media group Tamedia AG and Zurcher Kantonalbank.
    Notes: There are subsidies for construction and renovation of non-profit housing
    Notes: There are subsidies for construction and renovation of non-profit housing
    Notes: There are subsidies for construction and renovation of non-profit housing
    Notes: Together, UBS and Credit Suisse account for about 27% of the mortgage market
    Notes: Together, UBS and Credit Suisse account for about 27% of the mortgage market
    Notes: While Capital gains are not taxed at the federal level, they are taxed at the cantonal and municipal levels. The rate depends on the amount of gain and the length of time that the property was owned
    Notes: While Capital gains are not taxed at the federal level, they are taxed at the cantonal and municipal levels. The rate depends on the amount of gain and the length of time that the property was owned
    Notes: While Capital gains are not taxed at the federal level, they are taxed at the cantonal and municipal levels. The rate depends on the amount of gain and the length of time that the property was owned
    Notes: While Capital gains are not taxed at the federal level, they are taxed at the cantonal and municipal levels. The rate depends on the amount of gain and the length of time that the property was owned