Equity for Buying in Geneva: Amount, Sources, Costs and Calculator
Equity is the money a buyer puts in personally, without borrowing, to finance their home: the share of the price that banks require before granting a mortgage loan in Geneva. It comes from savings, pension assets or family members.
This article covers the amount required and how it is calculated, then the Geneva purchase costs that come on top of it. It presents the accepted sources, including the 2nd pillar, pillar 3a and family support, the options below the usual equity threshold, the proof the bank requires and the case of a second home. A calculator estimates the equity needed and the total to bring together, costs included.
How much equity do you need to buy in Geneva?
You need at least 20% of the price in equity to buy in Geneva, according to the practice of Geneva's banks, including the Banque Cantonale de Genève (BCGE), which finance up to 80% of the value of the home.
Under the guidelines of the Swiss Bankers Association (SBA) on the minimum requirements for mortgage financing, recognised by FINMA (no. 2.1, December 2023 version in force since 1 January 2025), at least 10% of the lending value must come from equity outside the 2nd pillar. The 10% threshold is the only equity fraction set by the guidelines; the 20% threshold belongs to banking practice.
The bank applies these shares to the lending value, meaning the value of the home as the bank itself estimates it, not the price paid. Also under no. 2.1 of the SBA guidelines cited above, any excess of the purchase price over the lending value must be financed entirely with equity outside the 2nd pillar. For an apartment bought for 1,050,000 francs and valued at 1,000,000 francs, the 50,000-franc difference is added to the equity required outside the 2nd pillar.
According to the Cantonal Statistics Office (OCSTAT), the median price of non-new open-market condominium (PPE) apartments sold in 2024 is 10,853 francs per m², or about 1,000,000 francs for 92 m². For this main residence, valued at its purchase price, the financing breaks down into three shares.
- Equity outside the 2nd pillar: at least 100,000 francs, or 10% of the price.
- Possible 2nd pillar share: at most 100,000 francs, to make up the 200,000 francs of equity.
- Mortgage loan: 800,000 francs, or 80% of the price.
This diagram breaks down the financing of a 1,000,000-franc apartment: 100,000 francs outside the 2nd pillar, at most 100,000 francs from the 2nd pillar and an 800,000-franc mortgage loan. The hatched block shows the 50,000 francs to add outside the 2nd pillar when the price paid exceeds the lending value used by the bank.
Nothing prevents a buyer from contributing more, up to paying the full price in cash, which reduces the mortgage loan by the same amount.
How do you calculate the equity needed to buy in Geneva?
To calculate the equity needed to buy in Geneva, apply 20% to the price of the property, including 10% outside the 2nd pillar, then add the purchase costs.
The calculator below takes the price, savings, pillars and family support as inputs and returns the share required, the share outside the 2nd pillar, the costs and the shortfall or surplus.
The property and your funds
Parameters as of 23 September 2026: equity 20% of the price, of which 10% outside the 2nd pillar (SBA guidelines s. 2.1), 40% for a second home (UBS practice); Geneva purchase costs ≈ 4% of the price + 2.5% of the loan, counted outside the 2nd pillar for prudence; Casatax reduction CHF 20,924 and mortgage note at half rate up to CHF 1,394,928 (main residence). Indicative estimate: each bank applies its own parameters.
The calculation follows four steps.
- Multiply the lending value by 20% and add any excess of the price paid over that value: this gives the equity required.
- Multiply that value by 10% and add the same excess: this gives the minimum share outside the 2nd pillar.
- Add the purchase costs: about 4% of the price according to the Geneva Chamber of Notaries, plus about 2.5% of the amount of the mortgage note.
- Compare this total with your assets: the difference measures the shortfall.
Do purchase costs come on top of the equity?
Yes, purchase costs come on top of the equity: they are paid in cash, in addition to the contribution, because the bank lends at most 80% of the value of the property, excluding costs (practice of the Banque Cantonale de Genève).
A purchase in Geneva involves four cost items, each governed by a cantonal provision.
- Registration duty: 3% of the sale price (LDE art. 33).
- Land register fee: 0.21% of the price (REmORFDIT art. 3).
- Notary fees: degressive scale set by the regulation on notaries' fees (REmNot).
- Duty on the mortgage note: 1.365% of its amount, that is a duty of 0.65% (LDE art. 84-85) increased by 110 additional centimes (LCACant art. 4).
According to the Geneva Chamber of Notaries, the deed of sale costs about 4% of the price and the mortgage note about 2.5% of its amount, including duty, notary fees and land register fees. An apartment at 1,000,000 francs requires 200,000 francs of equity + 40,000 francs of deed costs + 20,000 francs for the 800,000-franc mortgage note: about 260,000 francs in cash, before any Casatax discount.
For a main residence, the Casatax discount (LDE art. 8A) reduces the sale duty by 20,924 francs and halves the mortgage duties (for prices up to 1,394,928 francs since 1 March 2026: RDE art. 1).
Which sources of equity does the bank accept?
The sources of equity that the bank accepts fall into six categories, under the guidelines of the Swiss Bankers Association (SBA, no. 2.1): savings and securities, pillar 3a, life insurance, advances on inheritance and gifts, subordinated loans, and the 2nd pillar.
The table lists each source according to whether or not it counts towards the minimum share outside the 2nd pillar.
| Source | Counts towards the share outside the 2nd pillar? | Condition or limit |
|---|---|---|
| Savings in an account | Yes | Assets transferred to the bank or pledged in its favour (SBA no. 2.1). |
| Securities | Yes | Securities sold or pledged (SBA no. 2.1). |
| Pillar 3a | Yes | Early withdrawal for one's own home, once every five years (OPP 3 art. 3), or pledge. |
| Surrender value of a life insurance policy | Yes | Pledge of the policy's surrender value (SBA no. 2.1). |
| Advance on inheritance, gift | Yes | Deemed to be the client's own equity (SBA no. 2.1). |
| Loan from a third party or family | Yes, subject to conditions | Loan assigned, subordinated or whose repayment requires the bank's written consent (SBA no. 2.1). |
| 2nd pillar | No | Early withdrawal or pledge for the insured person's home (LPP art. 30b and 30c), allowed for the share beyond the 10% and any excess of the price over the lending value (SBA no. 2.1). |
Drawing on the 2nd pillar only after savings, securities and pillar 3a protects pension provision, since its early withdrawal reduces pension benefits (LPP art. 30c para. 4).
Can you use your 2nd pillar as equity?
Yes, you can use your 2nd pillar as equity for a home that the insured person occupies at their domicile or place of habitual residence, under the federal ordinance on the promotion of home ownership (OEPL, art. 4).
The 2nd pillar can cover only half, at most, of the 20% that banks require (SBA no. 2.1).
Early withdrawal and pledge differ on five criteria.
| Criterion | Early withdrawal | Pledge |
|---|---|---|
| Cash contribution | Capital paid to the seller (OEPL, art. 6) | None, the assets serve as security (LPP, art. 30b) |
| Effect on debt | Loan reduced by the amount withdrawn | Higher loan, backed by the pledge |
| Taxation | Taxed separately (LPP, art. 83a; LIFD, art. 38) | Tax only when the pledge is enforced (LPP, art. 83a) |
| Effect on retirement | Benefits reduced (LPP, art. 30c para. 4) | Benefits unaffected unless the pledge is enforced (CO, art. 331d para. 6) |
| Land register | Restriction on the right of disposal noted (LPP, art. 30e para. 2) | Noted when the pledge is enforced (LPP, art. 30e para. 2) |
The withdrawal must be requested no later than three years before retirement. After the age of 50, it is limited to the higher of two amounts: the assets held at age 50 or half of the current assets (LPP, art. 30c para. 1 and 2). It must be at least 20,000 francs and can be made only once every five years (OEPL, art. 5). It requires the written consent of the spouse (LPP, art. 30c para. 5).
Does pillar 3a count as equity?
Yes, pillar 3a counts as equity and falls within the minimum 10% share outside the 2nd pillar, under the guidelines of the Swiss Bankers Association (no. 2.1).
There are two ways to draw on your pillar 3a assets. Early withdrawal finances the purchase of the home occupied by the holder or the repayment of a mortgage loan (OPP 3, art. 3 para. 3); a pledge leaves the capital in the account and hands it to the bank as security (OPP 3, art. 4 para. 2).
Withdrawal is possible only once every five years (OPP 3, art. 3 para. 4). The capital withdrawn is taxed separately, at one-fifth of the direct federal tax rate scale (LIFD, art. 22 and 38).
Does a gift or a family loan count as equity?
Yes, a gift counts as equity under the SBA guidelines (no. 2.1), whereas a family loan counts only if it is assigned to the bank, subordinated, or its repayment depends in writing on the bank's consent.
The SBA guidelines recognise four forms of family support.
- Gift: full-fledged equity, supported by a written gift agreement, which the bank asks for (banking practice, UBS, 2025).
- Advance on inheritance: equity on the same basis, documented by a written agreement, required in the same way.
- Loan from a relative: equity for an owner-occupied home if the lender, a close family member, confirms in writing that any repayment requires the bank's consent.
- Assigned or subordinated loan: equity if the loan agreement is assigned to the bank or comes with a subordination clause.
Outside these conditions, the loan remains a debt: its interest and repayments are counted in the affordability calculation, which is capped at one third of gross income (banking practice, Helvetia, 2025).
The Civil Code (art. 626) requires an advance on inheritance to be brought into hotchpot between statutory heirs when the estate is divided.
Can you buy in Geneva with less than 20% equity?
No, not without assistance: you cannot buy in Geneva with less than 20% equity on the ordinary banking market, except through a cantonal scheme that covers the missing share.
Under the Geneva law on assistance for individual home ownership (LAPI), two schemes lower the required contribution.
- State guarantee: the State can guarantee a second-rank mortgage that takes loans up to 95% of the acquisition cost, leaving a personal share of 5% (art. 7 para. 1).
- State loan: since November 2024, the State can lend the missing equity, up to 15% of the price and for 10 years at most, to a buyer who brings together at least 5% (art. 7 para. 2 and 3).
Both forms of assistance require a main residence, a price below the Casatax ceiling (1,394,928 francs in 2026), housing costs between one-fifth and one-third of gross income and net wealth below 50% of the price (LAPI art. 5, 10A, 10B). Selling or letting the home triggers repayment (art. 6).
Before the purchase, Geneva's home savings scheme (LAPLE, rsGE I 4 55) helps build up the contribution. The State doubles the interest on a BCGE account funded with up to 12,000 francs a year per person, through a premium capped at 1,200 francs a year for 10 years at most.
Is equity enough to set your purchase budget?
No, equity is not enough to set your purchase budget: household income imposes a second limit, the theoretical costs the household can bear.
According to FINMA (factsheet "The mortgage market", June 2025), these costs cannot exceed one third of stable gross income. They are calculated on the basis of a theoretical interest rate, often 5%, additional costs of 0.8% of the lending value for a new building (1% in current banking practice) and amortisation. Each bank sets its own theoretical rate.
Equity and income work together: the lower of the two ceilings caps the budget for buying in Geneva. The choice between withdrawing and pledging the 2nd pillar changes the debt, and therefore the costs.
How do you prove your equity to the bank?
To prove your equity to the bank, you provide documents establishing the amount and origin of the funds, which the bank checks under the Anti-Money Laundering Act (LBA, art. 6).
According to Raiffeisen (June 2026), the bank asks for supporting documents for every asset and every debt.
- Provide account statements: they prove savings and securities.
- Attach the pension fund certificate: together with any vested benefits assets, it quantifies the 2nd pillar.
- Produce the pillar 3a certificate: it establishes the tied pension assets.
- Present the gift deed or the loan agreement: the deed proves a family gift, the agreement a loan and its repayment terms.
Submit the early withdrawal request well before the notarial deed: the pension fund makes the payment no later than six months after the request (OEPL art. 6 para. 1).
Do you need more equity for a second home?
Yes, you need more equity for a second home: according to UBS, banks require a markedly higher share, of at least 40%. The mortgage covers at most 60% of the property in that case.
Pension assets are excluded: the ordinance on the promotion of home ownership (OEPL, art. 4 para. 1) reserves the 2nd pillar for "own needs", meaning a home at the domicile or place of habitual residence. Pillar 3a follows the same rule. Owner-occupation opens access to pension assets and the 20% threshold, whereas a second home has to be financed without pension assets.