HOW IT WORKS
The construction loan is a current account credit facility. After you have paid your own funds If you have a construction project or are purchasing
a main residence in Switzerland, own funds
(2nd pillar, 3rd pillar, savings, gift, etc.)
must amount to at least 20% of the value of the property. into the account, we will use your credit to pay for the land purchase and settle all bills in connection with a wide range of work during the construction phase.
You can monitor all the expenditure and the progress of the work thanks to regular statements showing the bills that have been paid.
The interest on your construction loan (interim interest) can be paid throughout the construction phase or included in the overall amount of your financing.
With this option, you can avoid having two sources of expenditure if you have rent to pay while waiting for your new home to be built.
Consolidation refers to the conversion of your construction loan into a long-term debt or, in other words, a mortgage.
There are various types of consolidation and solutions:
Your construction loan is converted into a mortgage in one go at the end of the construction phase.
- You can decide how to split your loan into several rate tranches which are graduated according to the different durations to suit your personal and professional situation.
You can convert part of your construction loan into a mortgage during the construction phase depending on the progress of the work.
- You protect yourself from a rise in the markets by fixing your rate for this first tranche.
- Your mortgage interest is deductible from your taxable income.
COMBINE YOUR CONSTRUCTION LOAN AND MORTGAGE
To mitigate a potential rate increase and make your paperwork easier, you can secure your mortgage rate now thanks to our CA 2 en 1 offer which combines your construction loan and mortgage in a single contract.