Second mortgage

Purchase

The second mortgage is equal to the difference between the total mortgage loan and the 1st mortgage.

 

What is a second mortgage?

When you are taking out a mortgage to finance your real estate purchase in Switzerland, your mortgage may amount to no more than 80% of the collateral value of the property. The mortgage is divided into two parts: the 1st mortgage and the second mortgage.

The second mortgage is equal to the difference between the total mortgage loan and the 1st mortgage. If you would like to know more about mortgages, or if you would like help with your financing, our financial partner Strike is at your disposal.

 

 

Amortisation of the second mortgage

Unlike the 1st mortgage, the second mortgage must always be redeemed within 15 years or upon reaching the age of retirement, whichever comes first.

 

 

Example

For your real estate purchase of CHF 1’000’000, your bank has granted you a loan of 80 %. The mortgage then amounts to CHF 800’000 overall, with a first mortgage of CHF 660’000 and a second mortgage of CHF 140’000.

 

Sell my property

By Benjamin Steiner, July 25, 2023

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