Buying your first home in French-speaking Switzerland: where to begin

The question comes up every week at the agency: "We would like to buy our first home in French-speaking Switzerland, but we don't know where to begin." That is not an admission of ignorance — it is the most sensible reaction to a process that combines federal law, cantonal rules, bank calculations and negotiation. The good news is that the order of the steps is straightforward. That is what you should learn first.

Finances before viewings

Buying your first home almost always starts with a sequencing mistake: you view, you fall in love, then you discover that the financing does not work out. Doing it the other way round spares you both heartache and wasted time.

The basic rule set by mortgage lenders is that you generally need at least 20% of the purchase price in equity. On a flat priced at CHF 850,000, that is CHF 170,000. But there is more: at least half of that equity — 10% of the price — must come from sources other than your second pillar (occupational pension). Personal savings, an advance on an inheritance, a family gift, a tied pillar 3a balance: each source has its own rules and timelines.

The second banking criterion is the theoretical affordability cost. Lenders calculate what the property would cost you if the interest rate rose to around 5%, adding amortisation and a standard maintenance allowance. This overall cost should generally not exceed one third of your gross annual income. The agency's affordability calculator lets you estimate this threshold in a few minutes, before you have opened a single listing.

Once these broad figures are established, the next step is verification against actual documents. That is where the Buyer Passport comes in: the broker reviews real documents — pay slips, second and third pillar statements, proof of savings — and produces a dated financing attestation. It does not replace the bank's formal agreement, but it allows you to view properties knowing exactly where you stand and to make an offer that will be taken seriously. For a fuller account of the method, the chronicle Calculating your buying capacity before viewing details every line of the calculation.

Where the equity comes from

Consider a couple who have been saving for a few years and are wondering what they can mobilise. The common sources are as follows:

• Bank savings and free third pillar (3b): immediately available, counted without restriction towards the 20%.
• Tied third pillar (3a): may be withdrawn for the acquisition of a primary residence; an administrative lead time applies — contact your foundation well before signing.
• Withdrawal or pledge of second pillar funds: possible for a primary residence, but capped at the vested termination benefit acquired to date, and subject to the approval of the pension institution and, if you are married, of your spouse. A specific tax is levied at the time of withdrawal.
• Advance on inheritance or gift: accepted by most lenders; a notarised deed may be required depending on the amounts involved.

The 10% rule excluding second pillar funds means in practice that you cannot finance the entirety of your personal contribution from your pension fund: a portion of "hard" savings is indispensable.

Searching without dispersing

Once your capacity is established, the search can begin in earnest. In French-speaking Switzerland, the residential market remains tight in well-connected areas: Lausanne and its surroundings, Lavaux, the Riviera from Vevey to Montreux, La Côte between Morges and Nyon. Properties that match a first-buyer's budget move quickly, sometimes without ever appearing in a public listing.

The temptation is to look at everything. The trap is losing weeks on properties that are over budget, outside your area, or that the bank will not finance. A Buyer Diagnostic helps you set your criteria in the right order: what is essential, what is negotiable, what is a dealbreaker. The result is a realistic search perimeter — geographical, typological, financial — that does not shift with every new property you fall for.

For buyers who cannot monitor the portals every morning, a property search mandate delegates that monitoring to a broker: he knows properties before they go online, can alert you as soon as something matches and has the viewing arranged within hours.

Viewing with method

A well-prepared viewing is not a stroll: it is a first assessment. Here is what a first-time buyer should check, or have checked, before making an offer:

• The actual condition of the building: roof, façade, technical installations, pipework. An independent building survey can be requested for older houses.
• For a PPE (condominium ownership): the minutes of co-owners' meetings for the past three years, the balance of the renewal fund, works that have been approved or are pending a vote.
• The ECA insurance value: this indicates the cost of rebuilding from scratch — useful for context, but distinct from market value.
• Easements and land charges: request these from the land register or have them reviewed by a notary before making an offer.
• The asking price relative to comparable sales: this is where the agency's detailed valuation — which compares the property line by line against transactions actually recorded in the commune — provides an objective reference point.

From accepted offer to signed deed

In Vaud, the sale of a property is concluded before a Vaud notary by notarised deed (authentic deed). As a general rule, the buyer bears the notary's fees, the property transfer duties (cantonal and communal) and the land register fee. Together, these acquisition costs typically represent 4 to 5% of the price: a sum to budget for on top of the purchase price, which is not part of the mortgage financing.

Between acceptance of an offer and signature of the deed, several weeks elapse: the bank's definitive approval of the specific property, preparation of the deed by the notary, coordination of payments. This lead time is normal; it should not be confused with an agreement in principle that would be sufficient to reserve the property without a formal commitment.

The seller, for their part, will be liable for the property gains tax (impôt sur les gains immobiliers). In Vaud, this tax is payable by the seller and decreases with the length of ownership; the notary retains a portion of the price as a guarantee before remitting it to the cantonal tax authority. This does not directly concern you as the buyer, but it explains why some sellers attach importance to specific timelines.

Buying your first home means learning to ask the questions in the right order: first what you can finance, then what the property is worth, finally what the deed says.

Every first purchase in French-speaking Switzerland is different — in terms of budget, commune, property type and family situation. What does not change is the logic: financing first, search second, valuation before the offer. If you are at one of these stages and would like to understand what applies to your specific situation, the Advisor alongside the buyer is there to set out the steps with you, with no prior commitment required.