Accessing homeownership in French-speaking Switzerland has become a real obstacle course. With rising property prices, stricter borrowing conditions, and increasing mortgage rates, many households struggle to achieve their dream of buying a home.
Stricter Borrowing Conditions
Banks now require equity equivalent to 20% of the purchase price, which represents a significant amount that is difficult for many prospective homeowners to gather. Additionally, according to banking regulations, mortgage expenses must not exceed one-third of annual income. This criterion, combined with high property prices, excludes many people from obtaining financing.
The situation has been further exacerbated by the rise in mortgage rates since 2022, which has increased monthly payments and reduced borrowing capacity.
What Are the Alternatives?
In the face of these obstacles, solutions such as leasehold ownership (purchasing a home without buying the land) or housing cooperatives are emerging as more affordable pathways. These models help bypass the high costs of traditional real estate and offer households viable options for becoming homeowners.
Conclusion
Accessing homeownership in French-speaking Switzerland remains complex. However, by exploring alternatives such as leasehold ownership or cooperatives, it is possible to ease financial constraints and bring the dream of homeownership closer to reality.