Non-resident mortgage: salary in Swiss francs accepted, €545,000 for a house near Freiburg
“Your income is excellent — even so, unfortunately we cannot finance you.” With these words the advisory meeting at the second bank ended. This is a non-resident mortgage case — financed from Germany, not against it.
Why did two banks decline a salary in Swiss francs, and how was it accepted for a house near Freiburg?
Two banks declined because of internal policies on income paid in Swiss francs (exchange-rate risk, different payslips, tax rules), not because of creditworthiness. We approached banks that regularly handle Swiss income and explained the CHF income, employer, tax situation, commuter status and equity before submission. The commitment followed shortly after, with part of the equity kept as a reserve.
The dream of a home in Germany
For Mr M. this was barely comprehensible.
For more than twelve years he had worked as a mechanical engineer in Zurich. His salary was well above average, his employment contract permanent, and he had also saved up equity.
Together with his wife he wanted to buy a detached house in the Freiburg area.
The financing seemed a mere formality.
But two banks turned the application down.
Not because of the income.
But because of the income from Switzerland.
The family continued to live in Germany.
Every morning Mr M. drove across the border to his employer in Zurich.
He received his income in Swiss francs.
His wife worked part-time at a German company.
After several years of saving, the family finally found the right house.
The key figures:
Purchase price: 685,000 euros; Equity: 185,000 euros; Financing required: 545,000 euros.
The monthly burden was easily affordable.
Even so, the first meetings with banks were disappointing.
What is different about Swiss income for some banks
Many lenders finance cross-border commuters as a matter of course.
Others do so only to a limited extent.
The reason does not lie in the client's creditworthiness.
Internal policies are often decisive.
Swiss income means, among other things, for banks:
exchange-rate risks; different social-security systems; differing payslips; different tax rules; additional review effort.
Some banks want to avoid this risk on principle.
Others, by contrast, have specialised lending departments that handle such cases regularly.
The real strength lay in the overall picture
The analysis quickly showed that the economic situation was exceptionally solid.
Mr M. had a long-term employment contract.
His employer belonged to an internationally active industrial group.
The equity ratio was well above average.
In addition, there were sufficient reserves for modernisation and unforeseen expenses.
Even under a conservative calculation, the household budget showed comfortable financial room.
So the problem was not the financing.
The problem was the choice of the wrong banks.
The right financing strategy: Instead of making further standard enquiries, banks were specifically sought that regularly handle financings with Swiss income.
All the particulars were explained before submission.
These included:
income in Swiss francs; employer in Switzerland; the tax situation; cross-border commuter status; an exchange-rate assessment; proof of equity.
Thanks to this preparation, the bank's follow-up questions could be answered in advance.
After a short time the financing commitment followed.
The financing
The financing was structured for the long term and conservatively.
Part of the equity was deliberately kept as a reserve.
With property purchases in particular, it is advisable not to deploy all available funds.
That leaves enough financial room for modernisation or unexpected costs.
The family was able to complete the purchase of the house as planned.
Why this case is typical: For years, cross-border commuters have been among the economically strongest client groups.
Nevertheless, many applicants initially experience several rejections.
Not because their financial situation is problematic.
But because individual banks have not set up suitable processes for income from Switzerland.
Anyone who does not let this discourage them and specifically approaches institutions with the relevant experience often has very good financing prospects.
What other cross-border commuters can learn from this
A bank rejection often says more about the bank's lending guidelines than about the applicant's creditworthiness.
Income from Switzerland in particular is assessed very differently by banks.
It is therefore worth relying early on financing partners that regularly work with cross-border commuters.
This saves time, unnecessary rejections and often opens up better financing options.
Swiss franc salaries are now routine business for many banks: For many banks, income from Switzerland is part of everyday business today.
Even so, internal lending guidelines differ considerably.
While some institutions reject such financings across the board, others have many years of experience with cross-border commuters and international income structures.
Anyone who selects the right bank and prepares their financing carefully has very good prospects of a successful property financing in Germany, even with Swiss income.
Frequently asked questions
Can income in Swiss francs be taken into account in full?
Yes. Many banks accept income in Swiss francs, but assess possible exchange-rate risks.
Do I need a German employment contract?
No. What is decisive is the economic stability of the employment.
Do I have to live in Germany?
Not necessarily. Germans living in Switzerland can also finance property in Germany under certain conditions.
Which documents do banks ask for particularly often?
Besides the usual income documents, an employment contract, payslips, tax documents and evidence of existing assets are often required.
Are the conditions less favourable than with German income?
Not necessarily. With suitable creditworthiness and sufficient equity, the conditions often differ only slightly.
A similar situation? Let’s talk.
Every case with an overseas link is its own. In a free initial call we will tell you honestly what is feasible and which bank fits.
Anonymised individual case, not a guaranteeable statement for other projects · advice free · commission, as a rule, paid by the bank · §34i GewO · not legal or tax advice · no financing commitment; conditions depend on creditworthiness, lending value and bank
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Editorially responsible: Olga Nikushkina — owner, §34i GewO (German mortgage brokerage), adviser register D-W-132-ZUCB-95. Specialised in German property financing with an international dimension: non-residents, foreign-currency income, cross-border workers, expats. Siegfried Perini is entered in the German intermediary register under this licence as a person directly involved in brokerage and advice (§ 11a GewO), active in real estate since 1992. Not legal or tax advice.