Swiss salary as a cross-border commuter: €545,000 for a house near Freiburg after two banks declined
“Your income is excellent — even so, unfortunately we cannot finance you.” With these words the advisory meeting at the second bank ended.
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.
Who wanted a home in Germany?
A mechanical engineer who had worked in Zurich for more than twelve years, with a salary well above average, a permanent contract and saved equity; with his wife he wanted to buy a detached house in the Freiburg area.
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?
Exchange-rate risks, different social security systems, differing payslips, different tax rules and additional review effort. Some banks want to avoid this on principle, regardless of the customer’s creditworthiness.
Many lenders finance cross-border commuters in principle.
Others do so only to a limited extent.
The reason does not lie in the customer’s creditworthiness.
Internal requirements are often decisive.
For banks, Swiss income means, among other things:
- 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 credit departments that handle such cases regularly.
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.
So the problem was not the financing.
The problem was the choice of the wrong banks.
Where did the real strength of the application lie?
In the overall picture: a long-term employment contract with an internationally active industrial group, an equity ratio well above average, reserves for modernisation and comfortable room in the household budget.
Mr M. had a long-term employment contract.
The equity ratio was well above average.
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.
How was the financing structured?
For the long term and conservatively: part of the equity was deliberately kept as a reserve for modernisation or unexpected costs, and the family completed the purchase as planned.
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.
Is Swiss income part of everyday business for banks?
For many banks, yes. Their internal lending policies still vary considerably: some reject such financing outright, others have many years’ experience with cross-border commuters.
Nevertheless, internal lending policies vary considerably.
Whilst some institutions reject such financing outright, others have many years’ experience with cross-border commuters and international income structures.
Anyone who chooses the right bank and prepares their financing carefully stands a very good chance of securing successful property financing in Germany, even with a Swiss income.
This report describes an individual case. For detailed information on the types of cross-border commuter profiles banks are familiar with, what they check in an application, and how the currency discount (Währungsabschlag) affects the borrowing limit, please see the advice page: Cross-border commuters to Switzerland: Mortgages with CHF income.
Family from South Africa: Mortgage after moving house: Anonymised case study: Mortgage despite no SCHUFA history — why the lack of information wasn’t the problem. Brokered under Section 34i GewO.
What can other cross-border commuters learn from this?
A bank rejection often says more about the bank’s lending guidelines than about the applicant’s creditworthiness, so it pays to choose partners early that regularly work with cross-border commuters.
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.
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
Related pages
Cross-border commuters & neighbouring countries
An overview of all cases relating to this topic.
Non-resident mortgage: still living in Austria, buying in Bavaria, €548,000 financed
We documented the planned move comprehensibly and explained employment, income development and equity in full. The commitment followed after the review.
Non-resident mortgage: Luxembourg income with variable bonus accepted, €555,000 committed within days
Their own bank had rejected the loan: the Luxembourg income fell outside its standard process. A binding commitment followed after a few days.
Entrepreneurs from the Netherlands
Anonymised case study: Entrepreneur from the Netherlands — flat let in Düsseldorf for 498,000 euros, 370,000 euros financed. Brokered under Section 34i GewO.
Special income: bonuses, shares, source of funds
Mortgages for borrowers with non-standard income and assets: variable income, employee shares, source of funds.
Brexit: A job in London, a home in Germany
Anonymised case study: Brexit and a job in London — the dream of home ownership nearly came to an end. Brokered under Section 34i GewO.
Skilled worker from India: terraced house near Frankfurt
Anonymised case study: Terraced house near Frankfurt for 648,000 euros, 530,000 euros financed — the mortgage repayments are covered by the basic salary. Brokered under Section 34i GewO.
Non-resident mortgage: Tax-free income from Dubai accepted, €760,000 for a house south of Munich
Two banks rejected the case because the Dubai income was tax-free and the origin of the equity was not visible, not because of creditworthiness.
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.
