The Housing Finance System

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A. Primary Housing Finance Market

A.1 Industry Structure and Performance
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Types of originating lenders/market share:A.1.2
Universal/ commercial banks90% of totalNot availableNot available
SNB
A.1.2.1
Others (e.g. insurance co, pension funds, labor tax funds)5.5% of totalNot availableNot available
SNB
A.1.2.5
Identify the 3 largest loan originating lendersUBS, Credit SuisseUBS, Credit SuisseUBS, Credit Suisse
Relbanks
A.1.3
Are there (quasi) public mortgage lenders:YesYesYesA.1.4
Universal/ commercial banksYesYesYesA.1.4.1
Other depository institutions (savings and loans/mutual savings and credit institutions)YesYesYesA.1.4.2
Others (e.g. insurance co, pension funds, labor tax funds)YesYesYesA.1.4.5
Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
as a % of outstanding loan amount.67%.64%.74%
World Bank
A.1.6.2
Average 1997-2007 A.1.7
A.2 Size of Mortgage Finance Sector
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Total amount of home mortgage loans outstanding at the end of year in millions of USD:1,024,842.08 USD (millions)1,007,584.33 USD (millions)940,503.94 USD (millions)
SNB
A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)145.26%148.17%140.08%
SNB
A.2.1.1
and as % of all credits outstanding74.37%73.75%74.97%
SNB
A.2.1.2
A.3 Housing Finance Products
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Mortgage products as % of all mortgages (approx.) in local currency:A.3.1
Fixed rate for life of loan80%75%Not available
Swiss Bankers Association
A.3.1.1
Variable rate/indexed20%25%Not available
IMF
A.3.1.2
Most prevalent type of foreign currency mortgage used:A.3.3
Most frequent interest rates on fully amortizing:A.3.4
10 year fixed rate mortgage1.5%Not availableNot available
IMF
A.3.4.1
Typical lender fees associated with mortgage origination: A.3.6
Typical third party fees associated with mortgage origination:A.3.7
Loan-to-Value (LTV) on first mortgage: A.3.8
Maximum LTV80.0080.0080.00
SNB
A.3.8.1
Typical LTV at origination807070A.3.8.2
Maximum term over which pmt is calculated? Not availableNot availableNot availableA.3.9
Mortgage pmt-to-income ratio A.3.10
A.4 Lending and Servicing Process
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Does the mortgage industry use standard principles/guidelines for underwriting?YesYesYes
OECD
A.4.1
Which institutions define underwriting rules? A.4.2
Major LenderYesYesYes
OECD, Swiss Bankers Association
A.4.2.3
OtherYesYes 
FINMA
A.4.2.4
Are loan originations conducted by others than employees of lenders?Yes  A.4.3
A.5 Credit Risk Assessment
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Do credit bureaus exist? YesYesYes
European Credit Research Institute
A.5.2
Are there legal/regulatory constraints to gaining access to credit information?NoNoNo
Doing Business Survey
A.5.2.1
Is mortgage default insurance available?YesYesYes
UBS
A.5.3
B. Funding Sources for Mortgages and the Secondary Mortgage Market
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
What are the main funding sources for mortgages?B.1
Retail funding (deposits/other)primaryprimaryprimaryB.1.1
Funding through mortgage bonds secondarysecondarysecondary
ECBC and International Comparison of Mortgage Product Offerings
B.1.3
Funding through securitization of mortgagestertiarytertiarytertiaryB.1.4
Other Not availableNot availableNot available
 
B.1.5
C. Housing Microfinance
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Types of lenders operating in the housing micro-finance (HMF) sector:C.2
Level of NPLs (>90 days past due) in HMFC.4
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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