MORTGAGE

• You must be a Swissquote client. Your life partner may become a joint debtor with a view to financing the mortgage as an additional borrower if required. You must live in Switzerland and must not be a US person.

• Your current income from employment, self-employment and pensions must ensure the long-term affordability of the property.
• If self-employed, you must prove that your taxable income has been at least CHF 100,000 for the last three years.
• Affordability is achieved if your expenses do not exceed 34% of your net income.

The mortgage terms are calculated based on the requester's net income. The following rules apply to bonus payments:

• Bonuses paid out in cash: 50% offset.
• Bonuses paid as share participation: 0% offset.

Furthermore, income from securities, stock market gains, and interest income are not factored in.

Additional collateral, such as securities, life insurance policies, or account balances, cannot be pledged.

• The property must be located in Switzerland.
• The property must be an existing single-family home or an existing owner-occupied flat (including holiday homes). Financing cannot be provided for properties under construction or properties requiring major renovation.
• The property must belong to you; it is not possible to finance building lots.
• Usufructs, pre-emptive rights and rights of abode may not be entered in the land register on behalf of third parties.
• Yield properties, corporate properties and multi-family houses are not eligible for financing.
• Certain types of properties, such as high-end luxury properties, agricultural properties, large land reserves, etc., cannot be financed with a mortgage.

• When purchasing a property, your own resources must be transferred in full before any loan is granted. If making advance withdrawals from pension plans, the payout date must be confirmed in writing by the pension fund.
• In the event that property is financed by an advance withdrawal from pension plans, you must provide 10 percent of your own “hard” resources in any case.
• The maximum loan amount is 80% of the property’s value for a main residence and 65% for a second residence or holiday home. The minimum repayment for a main residence is defined in such a way that the loan amount is equivalent to a maximum of 66% of the property’s value within 15 years. 
• Interest must be paid quarterly.
• Loan repayments are determined by the bank and must be made quarterly in equal instalments. You may make indirect repayments via pension assets (Pillar 3 with Luzerner Kantonalbank).
• A linked account will be opened with Luzerner Kantonalbank for the purposes of debiting interest and repayments and handling the mortgage. It is the client’s responsibility to ensure that funds for interest and repayments are provided on time. The linked account must not be used to invest liquidity. LUKB is entitled to charge liquidity holding fees (negative interest) if the product is used in any other way.
• The first payout (if the contractual details specify a staggered mortgage payout) takes place between today and one year thereafter. The last payout (complete mortgage payout) takes place between the date of the first payout and five years thereafter.