Buying a home in Switzerland requires a down payment of at least 20%, of which at least 10% must come from “hard” equity — personal savings or cash not derived from pension funds.
In this context, the temptation to use a consumer loan to “create” part of that down payment is understandable.
But is it possible? And in which situations does it make sense — or not?
At MultiCredit, we guide you through your project with clarity, compliance, and prudence, so that your financing stands firm for the long term.
What banks accept (and don’t accept)
- The required 10% in hard equity cannot come from a consumer loan.
- Banks may tolerate that certain ancillary expenses (purchase fees, basic furnishing, minor urgent works) be financed with a personal loan if:
- Your financial capacity remains solid (stress test, affordability ratio, expenses);
- Your overall indebtedness stays reasonable;
- The situation is transparent (all loans must be disclosed).
In short: a consumer loan cannot replace the mandatory equity required by the bank —
but it can support your liquidity around the project if the “hard” down payment is already secured.
When a consumer loan can make sense
- Protecting your down payment
Use a personal loan for ancillary expenses (notary, moving, first furnishings) to preserve your cash for the down payment required by the bank. - Short-term bridge financing
While waiting for a bonus, share buyback, or family gift, a short, controlled consumer loan can prevent postponing the purchase — provided the loan repayment is guaranteed and near-term. - Optimizing your financial profile
Consolidating several small debts into one clear loan can simplify your monthly budget and stabilize your financial profile before submitting a mortgage application.
In every case, the priority remains the sustainability of your post-purchase budget (interest, amortization, maintenance, co-ownership fees).
When it’s not a good idea
- If the consumer loan is used to “fabricate” the 10% of required hard equity.
- If the extra monthly payment weakens your budget or causes you to fail the bank’s stress test.
- If the strategy relies on uncertain assumptions (unconfirmed bonus, speculative sale, etc.).
Simple numerical example
- Property price: CHF 800,000
- Total required down payment (20%): CHF 160,000
- Hard equity (min. 10%): CHF 80,000
You have CHF 120,000 in savings.
You use CHF 80,000 as “hard” equity and CHF 40,000 for the rest of the down payment (via pension funds or family gift).
You’re left with limited liquidity for initial expenses (furniture, moving, small renovations).
→ A targeted personal loan (e.g., CHF 20,000–30,000 over a short duration) can preserve your remaining savings without breaching bank rules, provided the monthly payment remains comfortable.
Alternatives to consider (often better accepted)
- 3rd pillar (pillar 3a): withdrawal or pledge for additional equity.
- 2nd pillar (pension fund): withdrawal/pledge depending on regulations and retirement impact.
- Family gift or advance inheritance: simple and robust when available.
- Phased spending: delay non-essential purchases instead of borrowing.
- Mezzanine or 2nd-rank mortgage: specific financing for owners, assessed case by case.
The MultiCredit approach: transparent, quantified, responsible
- Express assessment: income, expenses, ZEK/IKO, goals, timing.
- 360° simulation: mortgage + recurring expenses + with/without consumer loan scenario, stress test, and safety margin.
- Tailored strategy: prioritize “hard” equity, calibrate (or avoid) a consumer loan, and build a solid mortgage file.
- Support through completion: coordination with the mortgage broker, release schedule, and repayment plan.
Our compass: your financial security
A consumer loan should never endanger your property project.
If it strengthens your file and safeguards your liquidity, we’ll consider it.
If it exposes you to risk, we’ll help you find a better solution.
Speak with a MultiCredit advisor
Address: Rue de la Banque 4, CP 77 — 1701 Fribourg, Switzerland
Phone: 026 322 23 10 · Mobile: 079 936 31 75
E-mail: info@multicredit.ch
Hours: Monday–Friday, 08:30–18:00
MultiCredit — The right financing, at the right time, for the right reason.
An article by Munur Aslan, Director of Multicredit.
