Buying a house: the costs you should plan for
When buying a home, there are other costs to consider besides the purchase price and mortgage interest. These are often forgotten during the planning stage. We show you the costs you should expect when buying a property.
17.11.2025
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1. Buying a house: what costs are involved?
Anyone thinking about buying a property will already be aware of the down payment and the interest they will have to pay on their mortgage.
However, there are other costs besides the purchase price for the property itself. Most of these costs are not nearly as high as the value of the property, but altogether and over the years they do mount up. The following table provides an overview of the ancillary purchase costs:
| Expense item | Frequency of costs incurred |
|---|---|
| Notary fees | One-off |
| Property transfer tax or land registry fee | One-off |
| Mortgage certificate | One-off |
| Fees for the early withdrawal or pledging of pension assets | One-off |
| If applicable, capital disbursement tax in the event of the early withdrawal of pension assets | One-off |
| If applicable, costs for a building survey | One-off |
| Mortgage interest and amortization | Regular |
| Maintenance and ancillary costs | Regular |
| Insurance premiums | Regular |
| Taxes | Regular |
2. One-off costs for your home purchase
In addition to the price of the property, there are one-off ancillary costs when buying a house. These include levies to the local communal authority and the canton and, as the case may be, estate agent fees.
In contrast to the value of the property itself, you cannot finance these additional costs with a mortgage. You must be able to pay them out of your own pocket.
Here is a detailed breakdown of these one-off costs:
Public charges to the canton and commune
In some cantons, these are levied by the canton, in others by the commune. But regardless of where you buy, you will have to pay for these two services:
A purchase contract for owner-occupied property must be drawn up in writing and publicly certified. For the notarization of the purchase contract, you will need to pay notary fees.
In addition, the new owner must be entered in the land register. A fee is also charged for this entry in the land register. These fees are called different things in different cantons, such as property transfer fees, property transfer taxes or land register fees.
You can find out the amount of the fees for notarization and the land register entry in your new commune from the cantonal notary’s office.
Financing costs for your house
To obtain a mortgage from a financial institution, you must pledge your property as collateral. This collateral arrangement must also be entered in the land register. It is referred to as a lien on property.
Depending on the canton and lender, you may also need a mortgage note. Your cantonal notary’s office can also provide information about the relevant fees.
To obtain a mortgage from a financial institution, you need at least 20% of the property value as a down payment. Few home buyers have so much money at hand as part of their disposable assets. Many therefore use money from their occupational pension fund or third pillar.
This is possible by making what is known as an early withdrawal, This option is subject to tax. Because contributions into the pension plan were tax-free, you must pay capital disbursement tax on the lump sum when you withdraw the money early. The tax office of your canton or commune can tell you how high this tax is.
Another option is to pledge pension assets. With this additional collateral, the financial institution will lend you more than just 80% of the purchase price. Your pension is maintained in full, but your mortgage is higher. The bank will also charge additional interest in return. You should therefore compare both options before you decide which way to go.
Costs for a building survey
Before buying a property, it is advisable to have the building structure inspected by an expert. This will give you information about any need for renovation.
3. Regular costs: 3–5% of the property value
In addition to the one-off costs, there are regular costs when buying a property. To cover these recurring costs, you should expect them to total between 3 and 5% of the property value per year.
If interest rates rise, total costs could also climb to 8%. You can find our current mortgage rate forecast here.
Here is a detailed breakdown of these recurring costs:
You must pay interest on the mortgage amount the financial institution lends you. The amount of interest depends on the chosen term and the individual agreements.
When assessing whether you can afford your own home, banks usually run their calculations with 5% interest – even if interest rates are actually lower. You can easily calculate what you can afford using the Comparis mortgage calculator.
Good to know: it’s worth comparing mortgage rates
Are you looking for a suitable mortgage for your property purchase? If so, you should compare different deals. Mortgage rates can vary significantly depending on the mortgage term and lender. Over the years, you can save several thousand francs with lower interest rates.
You must pay off part of your mortgage in the form of amortization. As a general rule: you do not necessarily have to amortize the first mortgage, but the second one must be paid off within 15 years or by retirement.
You must budget another 1% of the purchase price per year for maintenance and ancillary costs. These include public charges such as property tax or land taxes. In our article, you can find out what comprises maintenance and ancillary costs.
As a homeowner, it is important to take out the right insurance policies. This helps protect you from financial loss. These are additional costs that you will have to pay regularly. In our article, you can find an overview of the most important insurance policies you will need for your own home.
If you become the owner of a single-family home or condominium, your annual tax bill will also change. Maintenance costs and interest on your mortgage can be deducted from your income on your tax return.
In return, however, the tax office will charge you the imputed rental value. This is treated as notional income and is taxable.
Good to know: abolition of imputed rental value
The Swiss population voted to abolish imputed rental value on 28 September 2025. However, the corresponding constitutional amendment is not expected to come into force until 2028 at the earliest. You can read about the effects of the abolition of imputed rental value on property owners in our article.
As a buyer, you do not have to worry about property gains tax. This tax only has to be paid by the seller.
This article was first published on 21.06.2018
