Buying a Home from 2025: What the Basel III Reform Means for Mortgages and Property Buyers

Buying a Home from 2025: What the Basel III Reform Means for Mortgages and Property Buyers

The Basel III reform will impose stricter capital requirements on Swiss banks starting in 2025, directly affecting mortgages and property buyers. Mortgages are set to become more expensive, credit criteria more stringent, and flexibility in mortgage conditions will be limited. As an independent mortgage broker, we help you secure the best mortgage deal through detailed mortgage comparisons and financing planning. Here’s what to expect with Basel III, along with tips to help you optimize financing despite these changes.

What Changes with Basel III for Mortgages?

1. Rising Mortgage Rates
   With banks required to hold more capital for mortgages under the new regulations, mortgage rates may increase. For homebuyers, it’s crucial to compare mortgage rates now to secure the best available rates. Independent mortgage brokers can assist in assessing current mortgage offers, including SARON and fixed-rate mortgages, to identify the best terms on the market.
2. Stricter Loan-to-Value (LTV) Criteria for Mortgages
   Banks will set higher LTV requirements, granting mortgages only to buyers with sufficient equity. For buyers, this means bringing as much equity as possible—such as through the third pillar or pension funds (BVG)—into the financing to meet credit standards and secure favorable mortgage terms. A well-prepared credit file is essential for a positive lending decision.
3. Less Flexibility in Mortgage Conditions
   The new rules limit banks’ flexibility, leading to stricter conditions for mortgage agreements, such as prepayment penalties or adjusting loan terms. Prospective buyers should be well-informed to secure flexible and suitable loan conditions for the long term. Mortgage brokers can provide valuable advice here, helping to determine which financing strategy best aligns with personal needs.

Tips for Securing the Best Mortgage Terms Despite Basel III

• Compare Mortgages Early: A free mortgage comparison can help you find the best mortgage rates currently available. As independent brokers, we analyze market conditions and provide insights on how to achieve long-term cost savings.
• Increase Your Equity: The more equity you bring, the better your chances of securing favorable mortgage rates. Make use of the third pillar and consider tapping into pension funds (BVG) for your equity share.
• Prepare Your Credit File Carefully: Banks will require deeper insights into your financial situation. A well-prepared credit file increases your chances of getting favorable mortgage offers and lower interest rates.

Conclusion: Act Now and Plan Your Mortgage Wisely

Buying a home will become more challenging starting in 2025, but with careful mortgage comparison and preparation, you can still secure optimal terms. As independent mortgage brokers in Switzerland, we support you with free mortgage comparisons, whether choosing between SARON or fixed-rate mortgages, and we help you optimize your financing plan.

Contact us for a free consultation and find the best mortgage rates for your new home!