Housing Finance Policy

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A. Legal and Regulatory Framework

A.1 Legal and Regulatory Framework
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Basis of the legal system: Civil, Common, Islamic, Other? (Describe)CivilCivilcivilA.1.1
Are there specific laws that deal with mortgages? YesYesYesA.1.2
Registration/Transfer of titles:A.1.3
Does the law clearly define different types of property rights?YesYesYesA.1.3.1
 Are property rights easily transferable?YesYesYes
Thomson Reuters
A.1.3.2
Typical number of days needed for the transfer of title161616
WDI
A.1.3.4
Can liens be effectively enforced?YesYesYesA.1.4
Is there specialized legislation covering:A.1.9
Issuance of covered mortgage bondsYes  
FINMA, Swiss Pfandbrief
A.1.9.1
Issuance of RMBSNo  
Thomson Reuters
A.1.9.2
B. Housing Finance Subsidies
B.1 Subsidies to Housing Finance Institutions
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Are there subsidized funding sources for mortgage lenders?Not availableNot availableNot available
 
B.1.1
Special government lines of credit Not availableNot availableNot available
 
B.1.1.1
B.2 Subsidies to Households
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Are there subsidies to households on housing finance?YesYesYes
OECD
B.2.1
Interest rate subsidies by special government fundsYes  
OECD
B.2.1.1
Mortgage interest deductibility from income taxYesYesYes
UBS
B.2.1.5
OtherYesYesYes
OECD
B.2.1.6
Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
C. Taxation
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
What taxes apply to Residential Real Estate?C.1
Tax on property (home-owners) YesYesYes
Global Property Guide
C.1.1
Property transaction taxes (purchase/selling)YesYesYes
UBS, KPMG
C.1.2
Tax on capital gains on property YesYesYes
UBS, Global Property Guide
C.1.5
OtherYesYesYes
UBS, Global Property Guide
C.1.6
Are there tax benefits on rental properties?YesYesYes
Global Property Guide
C.2
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Notes: (2010 = 100)
Notes: (2010 = 100)
Notes: (2010 = 100)
Notes: (2010 = 100)
Notes: (2010 = 100)
Notes: (2010 = 100)
Notes: (2010 = 100)
Notes: (2010 = 100)
Notes: (2010 = 100)
Notes: 15% for money market mortgages linked to LIBOR and 10% for adjustable-rate mortgages
Notes: 4% for insurers, 1.5% for pension funds
Notes: A landlord is able to deduct depreciation and other costs related to the rental property
Notes: A landlord is able to deduct depreciation and other costs related to the rental property 
Notes: Average lending rate on 10-yr fixed rate mortgage
Notes: banks have self-adopted strict guidelines
Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
Notes: Cantonal Banks are Swiss-governmental owned regional commercial banks
Notes: Corporate bonds
Notes: Financing at below-market interest rates
Notes: Generous rent control
Notes: Generous rent control
Notes: Homeowners can deduct loan interest payments from their income. Payments that apply to the principal and leasing costs do not apply
Notes: Homeowners can deduct loan interest payments from their income. Payments that apply to the principal and leasing costs do not apply
Notes: Homeowners can deduct loan interest payments from their income. Payments that apply to the principal and leasing costs do not apply
Notes: Income generated from tenants is taxed at the federal, cantonal and municipal levels at their respective rates
Notes: Income generated from tenants is taxed at the federal, cantonal and municipal levels at their respective rates
Notes: Income generated from tenants is taxed at the federal, cantonal and municipal levels at their respective rates 
Notes: Increase in online mortgage volumes and crowd-lending (where investors take on the role of investors)
Notes: Infinite term mortgage loans are available in Switzerland
Notes: Infinite term mortgage loans are available in Switzerland
Notes: Infinite term mortgage loans are available in Switzerland
Notes: Infinite term mortgage loans are available in Switzerland
Notes: Infinite term mortgage loans are available in Switzerland
Notes: Infinite term mortgage loans are available in Switzerland subject to certain criteria
Notes: Infinite term mortgage loans are available in Switzerland subject to certain criteria
Notes: Infinite term mortgage loans are available in Switzerland subject to certain criteria 
Notes: Landlords are (1) able to deduct depreciation and costs related to the rental property, (2) subject to a tax on imputed rental value, but at a generous rate
Notes: Landlords are subject to a tax on imputed rental value, but at a generous rate
Notes: LTVs concentrated between 79-80%
Notes: make up about 30% of the mortgage market and have varying degrees of government backing
Notes: make up about 30% of the mortgage market and have varying degrees of government backing
Notes: make up about 30% of the mortgage market and have varying degrees of government backing 
Notes: makes up approx. 13% of outstanding mortgages (ECBC)
Notes: Maximum LTV ratios for mortgages are not legally binding, but most banks have a policy that sets the ceiling at 80%
Notes: Maximum LTV ratios for mortgages are not legally binding, but most banks have internal policies that set the ceiling at 80%
Notes: Maximum LTV ratios for mortgages are not legally binding, but most banks have internal policies that set the ceiling at 80%
Notes: Maximum LTV ratios for mortgages are not legally binding, but most banks have internal policies that set the ceiling at 80% 
Notes: Maximum LTVs are not legally binding but internal policies of banks typically specify a ceiling of 80%
Notes: Maximum LTVs are not legally binding but internal policies of banks typically specify a ceiling of 80%
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, includes non-urban areas
Notes: National rate, percentage of tenants that pay market-price rent
Notes: National rate, percentage of tenants that pay market-price rent
Notes: National rate, percentage of tenants that pay market-price rent
Notes: National rate, percentage of tenants that pay market-price rent
Notes: National rate, percentage of tenants that pay market-price rent
Notes: National rate, percentage of tenants that pay market-price rent
Notes: National rate, percentage of tenants that pay market-price rent
Notes: National rate, percentage of tenants that pay market-price rent
Notes: National rate, percentage of tenants that pay market-price rent
Notes: National rate, percentage of tenants with reduced/free rent
Notes: National rate, percentage of tenants with reduced/free rent
Notes: National rate, percentage of tenants with reduced/free rent
Notes: National rate, percentage of tenants with reduced/free rent
Notes: National rate, percentage of tenants with reduced/free rent
Notes: National rate, percentage of tenants with reduced/free rent
Notes: National rate, percentage of tenants with reduced/free rent
Notes: National rate, percentage of tenants with reduced/free rent
Notes: National rate, percentage of tenants with reduced/free rent
Notes: No specific securitization legislation, though the general legal framework (Swiss Code of Obligations, general capital markets regulations) applies
Notes: Percentage in 2018 based on 2017 IMF report stating that aside from fixed rate mortgages, the remaining share corresponds to money market mortgages linked to LIBOR and adjustable-rate mortgages
Notes: PostFinance is part of Swiss Post, a state-owned shipping company. They offer savings accounts, retirement plans, and mortgage loans.
Notes: PostFinance is part of Swiss Post, a state-owned shipping company. They offer savings accounts, retirement plans, and mortgage loans.
Notes: PostFinance is part of Swiss Post, a state-owned shipping company. They offer savings accounts, retirement plans, and mortgage loans.
Notes: PostFinance is part of Swiss Post, a state-owned shipping company. They offer savings accounts, retirement plans, and mortgage loans.
Notes: PostFinance is part of Swiss Post, a state-owned shipping company. They offer savings accounts, retirement plans, and mortgage loans.
Notes: PostFinance is part of Swiss Post, a state-owned shipping company. They offer savings accounts, retirement plans, and mortgage loans. 
Notes: PostFinance is part of Swiss Post, a state-owned shipping company. They offer savings accounts, retirement plans, and mortgage loans.  
Notes: Property transfer tax is generally paid by the purchaser
Notes: Regulation under the Swiss Pfandbrief Act
Notes: Subsidies for buildings that meet environmental certifications
Notes: Taxes on inheritance/gifting; Income generated from tenants is taxed at the federal, cantonal and municipal levels at their respective rates
Notes: The actual value is -0.07%
Notes: The actual value is -0.07%
Notes: The actual value is -0.13%
Notes: The actual value is -0.13%
Notes: The actual value is -0.14%
Notes: The actual value is -0.18%
Notes: The actual value is -0.21%
Notes: The actual value is -0.25%
Notes: The actual value is -0.25%
Notes: The actual value is -0.25%
Notes: The actual value is -0.25%
Notes: The actual value is -0.27%
Notes: The actual value is -0.31%
Notes: The actual value is -0.32%
Notes: The actual value is -0.36%
Notes: The actual value is -0.99%
Notes: The actual value is -1.03%
Notes: The property tax rate ranges from 0.05 to 0.3% and is levied on the value of the home
Notes: The property tax rate ranges from 0.05 to 0.3% and is levied on the value of the home
Notes: The property tax rate ranges from 0.05 to 0.3% and is levied on the value of the home
Notes: The property tax rate ranges from 0.05 to 0.3% and is levied on the value of the home
Notes: The Swiss Bankers Association creates guidelines to set standards for estimating property valuations used for LTV-ratio calculations
Notes: The Swiss Bankers Association creates guidelines to set standards for estimating property valuations used for LTV-ratio calculations
Notes: The Swiss Financial Market Supervisory Authority (FINMA) makes amendments to SBA guidelines
Notes: The Swiss Financial Market Supervisory Authority (FINMA) makes amendments to SBA guidelines
Notes: There are companies that are owned or partially owned by state-owned cantonal banks. For example, Homegate AG is an online real estate marketplace, similar to Zillow, that offers mortgage loans. They are part of media group Tamedia AG and Zurcher Kantonalbank.
Notes: There are companies that are owned or partially owned by state-owned cantonal banks. For example, Homegate AG is an online real estate marketplace, similar to Zillow, that offers mortgage loans. They are part of media group Tamedia AG and Zurcher Kantonalbank.
Notes: There are companies that are owned or partially owned by state-owned cantonal banks. For example, Homegate AG is an online real estate marketplace, similar to Zillow, that offers mortgage loans. They are part of media group Tamedia AG and Zurcher Kantonalbank.
Notes: There are companies that are owned or partially owned by state-owned cantonal banks. For example, Homegate AG is an online real estate marketplace, similar to Zillow, that offers mortgage loans. They are part of media group Tamedia AG and Zurcher Kantonalbank.
Notes: There are companies that are owned or partially owned by state-owned cantonal banks. For example, Homegate AG is an online real estate marketplace, similar to Zillow, that offers mortgage loans. They are part of media group Tamedia AG and Zurcher Kantonalbank. 
Notes: There are companies that are owned or partially owned by state-owned cantonal banks. For example, Homegate AG is an online real estate marketplace, similar to Zillow, that offers mortgage loans. They are part of media group Tamedia AG and Zurcher Kantonalbank.  
Notes: There are companies that are owned or partially owned by state-owned cantonal banks. For example, Homegate AG is an online real estate marketplace, similar to Zillow, that offers mortgage loans. They are part of media group Tamedia AG and Zurcher Kantonalbank.
Notes: There are subsidies for construction and renovation of non-profit housing
Notes: There are subsidies for construction and renovation of non-profit housing
Notes: There are subsidies for construction and renovation of non-profit housing
Notes: Together, UBS and Credit Suisse account for about 27% of the mortgage market
Notes: Together, UBS and Credit Suisse account for about 27% of the mortgage market
Notes: While Capital gains are not taxed at the federal level, they are taxed at the cantonal and municipal levels. The rate depends on the amount of gain and the length of time that the property was owned
Notes: While Capital gains are not taxed at the federal level, they are taxed at the cantonal and municipal levels. The rate depends on the amount of gain and the length of time that the property was owned
Notes: While Capital gains are not taxed at the federal level, they are taxed at the cantonal and municipal levels. The rate depends on the amount of gain and the length of time that the property was owned
Notes: While Capital gains are not taxed at the federal level, they are taxed at the cantonal and municipal levels. The rate depends on the amount of gain and the length of time that the property was owned