Buying a house Bern: prices, mortgage and documents (cross-border guide)

Context

At a glance

• Swiss tax system at 3 levels: federal, cantonal, municipal
• Transfer tax is cantonal responsibility, varies by canton
• Mortgage: banks require minimum 20% own funds
• Mandatory notarial procedure and federal land registration

Key facts

• What: Property sale regulated by federal law (CO) and cantonal taxes
• Where: Canton of Bern; cantonal tax and administrative jurisdiction
• Who: Buyer, seller, notary, bank, cantonal land registry
• Legal basis: Code of Obligations (CO) art. 214 et seq.
• Mandatory intervention: Notary for deed validity and registration

The purchase of a residential property in Switzerland is regulated by a uniform federal legal framework and variable cantonal taxes. In the Canton of Bern, as in every canton, the purchase of real estate property entails compliance with procedures defined by the Code of Obligations (CO), the intervention of an authorized notary, and the payment of transfer taxes determined by Bernese cantonal legislation.

Legal framework for real estate property

Real estate property in Switzerland is regulated by federal law, which ensures uniformity in registration procedures and the recognition of property rights throughout the national territory. Cantonal law, on the other hand, defines the taxes due at the time of property transfer — transfer tax — and municipal multipliers, which vary significantly from canton to canton and from municipality to municipality.

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Operational details

Purchasing a property in Bern, as throughout Switzerland, requires solid financial planning and understanding of banking requirements. Most buyers resort to a mortgage, a financing secured by the property itself. Understanding standard banking requirements and assessing the financial sustainability of the mortgage is essential before proceeding with the signing of the deed of sale.

The Swiss mortgage: structure and banking requirements

In Switzerland, banks generally require borrowers to have a minimum of 20% of the property value as own funds paid in. The remaining 80% is financed through the mortgage. This requirement is an established banking practice throughout the country and aims to reduce the risk of default, protecting both the credit institution and the buyer.

The Swiss mortgage is typically structured in two distinct levels. The first mortgage (first rank) usually represents up to 65-70% of the property value and carries the lowest risk for the bank, with more favorable interest rates. The second mortgage (second rank) covers the portion between the first mortgage and 80% of the total value, and has a generally higher interest rate since it carries greater risk for the credit institution.

Interest rates on mortgages vary depending on the general economic situation, the policies of the Swiss National Bank (SNB) and the commercial strategies of individual banks. There is no uniform national rate; each credit institution independently sets its own rates based on the buyer's risk profile and current market conditions. Use our mortgage calculator to estimate your financing capacity.

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Key points

House Purchase Procedure in Bern: The Main Phases

The process of purchasing a residential property follows a standardized sequence at the federal level, although administrative and tax details vary by canton. In the Canton of Bern, the process is governed by the Code of Obligations (CO) and cantonal laws relating to land registry registration and transfer taxes. Understanding the main steps of the procedure allows you to properly plan the timing, costs, and responsibilities of the transaction.

Phase 1: Property Search and Purchase Offer The buyer identifies the property of interest and submits a verbal or written purchase offer to the seller. This initial offer is not yet legally binding; both parties can negotiate the terms of the transaction (price, transfer date, special conditions).

Phase 2: Preliminary Verification and Mortgage Pre-approval Once the preliminary offer is accepted, the buyer should conduct thorough checks:

• Obtain an independent property appraisal (optional but strongly recommended)
• Verify certificates and entries in the cantonal Land Registry
• Check for any encumbrances, mortgages, or servitudes existing on the property
• Ensure the availability of a pre-approved mortgage from your trusted bank

Phase 3: Execution of the Notarial Deed The notary, upon instruction from the parties, drafts the purchase and sale deed based on the concluded negotiations. The deed contains a detailed description of the property (location, areas, attached rights), the purchase price, payment terms, the transfer date and all agreed conditions. Both parties sign the deed in the presence of an authorized notary, guaranteeing the authenticity and legal validity of the document under federal law.

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