House in Graubünden: mortgage, own funds and taxes (cross-border guide)

Context

In a nutshell

• Real estate purchase in Switzerland: 6-12 months from research to transcription
• Minimum own funds: usually 20% of the purchase price
• Acquisition tax and notary fees vary by canton and municipality
• Mortgage mortgage sustainability assessed on income capacity

Key facts

• What: Residential purchase in Switzerland
• When: Process 6-12 months
• Where: Canton of Graubünden
• Who: Buyer, bank, notary, cantonal land registers
• Regulations: Federal Bond Code
• Cost base: Mortgage + acquisition taxes + notary fees + transcription

The real estate buying process in Switzerland

The purchase of a house in Switzerland follows a process governed by the Federal Bond Code, with cantonal variations on taxation and procedures. The Canton of Graubünden, like all cantons, applies its own rates on acquisition taxes and regulates notarial expenses according to cantonal tariffs.

The main phases are: property search, price negotiation, bank pre-qualification to verify the sustainability of the loan, stipulation of the notarial contract (mandatory), and transcription in the cantonal land registers. Each stage involves specific legal costs and responsibilities.

Who leads the process: bank, notary and registers

The Swiss bank evaluates the sustainability of the mortgage loan on the basis of the buyer's income capacity, applying a stress-test that simulates scenarios of rising

Operational details

Mortgage financing: own funds and sustainability

Access to the mortgage loan in Switzerland requires own funds (usually 20% of the purchase price) and borrowing capacity (sufficient income for mortgage installments and other charges). A lower own fund percentage is possible at some banks, but it comes with a premium mortgage and significant additional costs.

Swiss banks assess the borrowing capacity on the buyer's gross income, deducting assicurazione malattia obbligatoria (LAMal/KVG), contributi previdenziali AVS/LPP, federal/cantonal/municipal taxes and other charges. They also apply a stress-test, simulating a high interest rate (usually +1-2%) to verify the sustainability of the mortgage in the scenario of rising rates decided by the Swiss National Bank (SNB). This conservative approach aims to avoid over-indebtedness of buyers.

Fixed and variable rates

The loan can be variable rate (linked to market rates and the SNB's monetary policy) or fixed (contracted for 3, 5, 10+ years). Floating rates are more flexible but expose you to upside risk; fixed rates offer certainty but usually at higher initial premiums. The choice depends on the personal risk profile and the business cycle.

LAMal's weight on borrowing capacity

Compulsory health insurance (LAMal) varies by canton and risk profile. Monthly premiums (from about CHF 300 for high deductibles to CHF 400+ for

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

The step-by-step purchase procedure

1. Search and negotiation (1-6 months): Identify the property, verify its legal situation, and negotiate the price.

2. Bank pre-qualification (1-3 weeks): Contact the bank with income documentation to obtain a pre-qualification letter, which confirms the maximum mortgage accessible.

3. Notarial contract (1-3 weeks): The notary drafts the sale contract, verifies the property's legal situation (absence of liens, encumbrances, easements), and obtains the parties' signatures.

4. Mortgage disbursement and payment (1-2 weeks): The bank disburses the financing. The buyer transfers their own funds. The notary transfers the funds to the seller and initiates the registration.

5. Registration in the land registry (1-4 weeks): The cantonal registry office records the change of ownership. Only once registration is completed, the buyer becomes the legal owner of the property.

Acquisition taxes and expenses: cantonal variability

In Canton Grisons, the buyer pays an acquisition tax on the purchase. The rate varies by canton and municipality — there is no uniform federal amount. Consult the Cantonal Finance Office or the municipal office for exact rates.

Notary fees are defined by cantonal tariffs and proportional to the purchase price. These also vary from canton to canton. Request quotes from the notary before signing.

Other expenses: land registry registration fees, bank processing charges, mandatory insurance (e.g., fire insurance on mortgaged properties).

Specific information for Canton Grisons

• Canton Grisons Department of Finance: acquisition taxes, rates, payment methods
• Canton Grisons Notary Board: advice on notary fees and procedures
• Cantonal land registry office: registration procedures and timelines
• Local banks: mortgage consulting and borrowing capacity

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