{"id":16590,"date":"2022-06-04T16:30:00","date_gmt":"2022-06-04T14:30:00","guid":{"rendered":"https:\/\/lica.ch\/?p=16590"},"modified":"2026-05-05T10:18:31","modified_gmt":"2026-05-05T09:18:31","slug":"buy-property-without-own-funds","status":"publish","type":"post","link":"https:\/\/www.lica.ch\/en\/credit-immobilier\/comment-faire-un-achat-immobilier-sans-fonds-propres\/","title":{"rendered":"How to buy a property without own funds?"},"content":{"rendered":"

Like many people, you'd love to make a property purchase without equity, wouldn't you? But until now, this has seemed an impossible task. Yet you're convinced that owning your own home would offer you nothing but advantages.<\/p>\n\n\n\n

Buying real estate allows you to save money<\/a> and avoid paying exorbitant rents. Buying a house or apartment is also a secure, long-term investment that can be considered an excellent investment. As you can see, buying real estate is a way of building wealth and protecting your family. So there are a thousand and one reasons to buy real estate! The good news is that real estate investment is possible even without equity capital. Find out in this new article how to buy a property without equity with the help of Lica services.<\/a><\/p>\n\n\n\n

Obtaining a mortgage to buy a property without equity capital<\/h2>\n\n\n\n

Equity is your savings and therefore your money. However, the first property purchase is often a difficult task if you plan to build up your equity solely with savings! <\/p>\n\n\n\n

Fortunately, there's a unique solution for making your property purchase without equity. Thanks to the combination of two financing solutions, it's possible to make a property purchase even without a down payment. <\/p>\n\n\n\n

Here are the two types of financing we're going to use to 100% finance your property purchase. We'll start by explaining how each one works, and then move on to the financial calculations. <\/p>\n\n\n\n

Mortgage financing to finance 80% of your purchase<\/h3>\n\n\n\n

This is an important part of financing your real estate project. The mortgage will generally finance 80% of the price of your property purchase. This type of loan currently benefits from very low rates, ranging from 1% to 2%. The term of the loan can also be quite long, as it is possible to borrow for up to 25 years in Switzerland.<\/p>\n\n\n\n

Mortgage financing<\/a> will be used to finance a large part of your purchase (80%). You'll benefit from a low interest rate and a long repayment schedule. <\/p>\n\n\n\n

Your Lica specialist will inform you about the various documents you need to gather in order to apply for mortgage financing without any obligation on your part.<\/p>\n\n\n\n

Personal loans to finance the remaining 20% units<\/h3>\n\n\n\n

Private credit<\/a> is also a very attractive solution for financing the remaining 20% of your property purchase. In fact, private credit will be used to make up the financing shortfall on your purchase. As explained above, mortgage financing will fund the 80% of your property purchase, and the missing 20% will be financed with a private credit.<\/p>\n\n\n\n

A personal loan works differently from a mortgage. It's a short-term loan that you'll repay between 12 and 120 months. The interest rate will also be higher than that of mortgage financing, ranging from 4.9% to 9.9%.<\/p>\n\n\n\n

Conditions for granting private credit<\/a> are less stringent than for a mortgage. Here too, your Lica agent will be happy to provide you with free information on the terms and conditions. <\/p>\n\n\n\n

\u26a0\ufe0f Please note! When you borrow your own funds, it's impossible to apply for a mortgage straight away. This is because lending institutions will not accept your equity directly from a private loan when granting a mortgage.<\/strong>. <\/p>\n\n\n\n

That\u2019s why it\u2019s important to take things one step at a time\u2014and, above all, to seek guidance from experts! Your advisor at Lica will explain how to proceed and what pitfalls to avoid.<\/p>\n\n\n\n

How much will I have to pay if I buy a property with no equity?<\/h2>\n\n\n\n

With a property purchase without equity, your expenses will be higher in the first few years of ownership, since you will also have to repay the portion of the 20% borrowed in the form of a mortgage. private credit<\/a>. But don't panic, you'll see that the situation is much more attractive than that of a tenant. What's more, after a few years, the cost of your property purchase will be identical to that of a purchase with an equity contribution.<\/p>\n\n\n\n

Here are two tables showing the situation with and without the equity repayment. You'll notice that the rent is quite acceptable during the equity repayment period. Once this part has been reimbursed, expenses become very low, and the situation is identical to a purchase with a traditional equity contribution.<\/p>\n\n\n\n

Situation after repayment of equity :<\/h3>\n\n\n\n
\n
\n
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Purchase price<\/strong><\/td>500 000.00 CHF<\/strong><\/td><\/tr>
Acquisition costs<\/td>25 000.00 CHF<\/td><\/tr>
Equity in the form of a loan<\/td>100 000.00 CHF<\/td><\/tr>
Mortgage loan<\/td>400 000.00 CHF<\/td><\/tr>
Mortgage interest<\/td>6 000.00 CHF<\/td><\/tr>
Amortization<\/td>5 000.00 CHF<\/td><\/tr>
Insurance<\/td>750.00 CHF<\/td><\/tr>
Management fees<\/td>1 800.00 CHF<\/td><\/tr>
Property tax<\/td>550.00 CHF<\/td><\/tr>
Condominium fees<\/td>1 000.00 CHF<\/td><\/tr>
Repayment of equity<\/strong><\/td>12 120.92 CHF<\/strong><\/td><\/tr>
Annual rent<\/td>27 220.92 CHF<\/td><\/tr>
Monthly rent<\/strong><\/td>2 268.41 CHF<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n\n\n\n

Situation without repayment of equity :<\/h3>\n\n\n\n
\n
Purchase price<\/strong><\/td>500 000.00 CHF<\/strong><\/td><\/tr>
Acquisition costs<\/td>25 000.00 CHF<\/td><\/tr>
Equity in the form of a loan<\/td>0.00 CHF<\/td><\/tr>
Mortgage loan<\/td>400 000.00 CHF<\/td><\/tr>
Mortgage interest<\/td>6 000.00 CHF<\/td><\/tr>
Amortization<\/td>5 000.00 CHF<\/td><\/tr>
Insurance<\/td>750.00 CHF<\/td><\/tr>
Management fees<\/td>1 800.00 CHF<\/td><\/tr>
Property tax<\/td>550.00 CHF<\/td><\/tr>
Condominium fees<\/td>1 000.00 CHF<\/td><\/tr>
Repayment of equity<\/strong><\/td>0.00 CHF<\/strong><\/td><\/tr>
Annual rent<\/td>15 100.00 CHF<\/td><\/tr>
Monthly rent<\/strong><\/td>1 258.33 CHF<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

A few additional solutions for topping up your equity capital in Switzerland<\/h2>\n\n\n\n

There are other options available to supplement the required contribution of 20%. Here are a few suggestions your advisor Lica<\/a> will work with you to optimize your financing.<\/p>\n\n\n\n

Solutions for bringing in your own funds and making your property purchase without equity :<\/h3>\n\n\n\n