For those who haven’t read the news yet, as of 1 January 2020, FINMA will recognise the adjusted self-regulation by the Swiss Bankers Association in the area of mortgage lending for investment properties (DE / FR) as a binding minimum standard.
As of 1 January 2020, new borrowers will be required :
to provide a minimum down payment of at least a 25% of the loan-to-value ratio (vs the current 10%);
to amortise the mortgage to two-thirds of the loan-to-value ratio of the property within a maximum of 10 years (currently 15 years).
Owner-occupied residential properties are not affected by the adjustments, nor the “buy-to-let segment”, ie “apartments and single family houses owned by private individuals that are not occupied by the owners themselves, but are instead rented out”. FINMA is however recommending that banks voluntarily also apply the stricter capital and amortisation requirements to loans for buy-to-let properties.