What is a mixed mortgage in Switzerland ?
May 8, 2026What is a mixed mortgage in Switzerland ?
May 8, 2026
What is a bridging loan in Switzerland ?
Understanding bridging loans before getting started
In this article, we will cover:
- › What is a bridging loan for homeowners?
- › What is a bridging loan used for?
- › How does a bridging loan work?
- › How long does a bridging loan last?
- › What are the advantages of a bridging loan?
- › What risks should you be aware of?
- › Who is a bridging loan suitable for?
- › Why have your property valued before applying for a bridging loan?
- › Why seek support from experts?
What is a bridging loan for homeowners?
Buying a new home before selling your current property can quickly become complicated. As a homeowner, you may find the ideal house or apartment while the proceeds from the sale of your current home are not yet available.
A bridging loan, also known as bridge financing, is designed precisely to bridge the gap between these two stages. It is a temporary financing solution that helps homeowners buy a new property before selling their existing one.
It acts as a financial bridge between the sale of your current home and the purchase of your future property.
A bridging loan can be an attractive solution for homeowners who wish to buy a new home before selling their current property. However, this type of financing requires proper preparation, as it depends on the value of the property to be sold, the expected sale timeline, the bank’s conditions, and the homeowner’s financial capacity.
Definition of a bridging loan
A bridging loan is short-term financing granted to a homeowner who wishes to buy a new property before completing the sale of their current home.
In practical terms, the bank advances part of the expected proceeds from the sale of the existing property. This advance can then be used to finance all or part of the new property purchase.
Once the current property has been sold, the proceeds from the sale are used to repay the bridging loan, either in full or in part, depending on the situation.
What is a bridging loan used for?
In practice, it is rare for the sale of a home and the purchase of a new property to take place at exactly the same time. A homeowner may find an attractive opportunity even before signing the sale of their current property.
Without a financing solution, they may have to wait, give up on the new home, or sell their current property in a hurry.
A bridging loan therefore provides greater flexibility. It helps move forward with a new property project without waiting for the final sale of the existing property.
How does a bridging loan work?
The way a bridging loan works is relatively simple. The financial institution assesses the value of the property you wish to sell, then grants temporary financing based on that valuation.
This amount can then be used to finance the purchase of the new home. Once the former property is sold, the proceeds from the sale are used to repay the bridging loan.
For example, if you own an apartment and want to buy a house, a bridging loan can help you obtain the necessary funds before the sale of the apartment is finalized.
How long does a bridging loan last?
A bridging loan is a temporary solution, generally lasting 1 to 2 years. It is not intended to replace a traditional long-term mortgage.
Its duration depends on your situation, the conditions set by the financial institution, and the time needed to sell the current property.
The aim is to sell the existing home within a reasonable timeframe in order to repay the bridging loan without unnecessarily extending the financing.
What risks should you be aware of?
A bridging loan can be very useful, but it also involves certain risks. The first relates to the time needed to sell the current property.
If the home is not sold within the expected timeframe, the homeowner may need to extend the financing or revise their sales strategy.
Another risk concerns the sale price. If the property is ultimately sold for less than expected, the amount recovered may be insufficient to fully repay the bridging loan.
According to the Federal Statistical Office, the development of property prices in Switzerland is measured every quarter through the Swiss Residential Property Price Index. This index distinguishes, in particular, between single-family houses, owner-occupied apartments, and different types of municipalities. This shows that the value of a property can vary depending on its category, location, and the timing of the sale.
This is why a realistic valuation of the property is essential before making a commitment.
Who is a bridging loan suitable for?
A bridging loan is mainly intended for homeowners who wish to buy a new home before selling their current property.
It may be suitable if you have found a new property but the sale of your current home has not yet been finalized.
It may also be appropriate if you want to avoid a rushed sale or if you need a temporary advance to complete your future purchase.
According to the Federal Statistical Office, in 2024, only 35.7% of occupied dwellings in Switzerland were owner-occupied. A bridging loan therefore applies to a very specific situation: homeowners who need to coordinate the sale of their current property with the purchase of a new home.
Why have your property valued before applying for a bridging loan?
Valuing the property to be sold is an essential step. It helps assess the amount you can reasonably expect to recover from the sale.
An overly optimistic valuation can create a financial imbalance. If the actual sale price is lower than expected, repaying the bridging loan may become more difficult.
According to the Federal Statistical Office, the Swiss Residential Property Price Index increased by 2.4% year-on-year in the 4th quarter of 2024. This development shows that prices can vary depending on the period, and that a recent valuation is essential before building a financing plan.
It is therefore recommended to know the current value of your property before considering this type of financing: FINMA.
Financing to prepare with experts
Obtaining a bridging loan from a bank can be complex. This type of financing depends on many factors, such as the estimated value of your current property, the amount of your mortgage, your financial capacity, and the planned sale conditions.
As every situation is different, it is important to be properly supported before submitting an application. A precise analysis helps avoid unpleasant surprises and present a strong file to the financial institution.
To help you with this process, Immoprice collaborates with professional brokers who can advise you, compare the available solutions, and support you through the steps related to your property financing.
Feel free to contact us so we can guide you toward the right experts and help you move forward with your project with confidence.
Conclusion
A bridging loan is a useful solution for homeowners who wish to buy a new home before selling their current property.
It allows them to temporarily access the funds needed to move forward with their property project, without having to wait for the final sale of the existing home.
This solution offers flexibility, but it must be used with caution. Before applying for a bridging loan, it is important to have your property valued, assess your financial capacity, and compare the different financing options available.
Calculate your financing capacity
Before making a commitment, you can use our mortgage calculator to estimate your monthly payments and better understand the impact of property financing on your budget. Estimate your mortgage with the Immoprice mortgage calculator:
Do you already own a property?
If you are considering selling a property that is still mortgaged, it is useful to know its current value.
This helps estimate whether the potential sale price covers the remaining mortgage balance, any potential costs, and your future property project.
Estimate the value of your property with Immoprice: