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No mortgage without a mortgage certificate.
Mortgage certificate explained in simple terms.
A mortgage certificate is a form of security based on a real estate lien. It documents the creditor’s claim and the associated lien. It gives the lender the right to initiate a forced sale of the property if the mortgage holder does not fulfil their payment obligations. This right is called a mortgage right and comes into effect when the mortgage is entered in the land register. It is linked to a specific amount (capital or maximum mortgage).
How much does a mortgage certificate cost?
In Switzerland, the land register is regulated at cantonal level, which means the processes and fees can vary greatly. The fee for issuing a mortgage certificate includes:
- Land register fees (0.1–0.3% of the mortgage amount, depending on the canton)
- Notary fees (where required by law)
- Stamp duty (for new mortgages over CHF 1 million)
What others wanted to know.
Our mortgage experts give an insight into a selection of the most frequently asked questions. Submit your own question. We will be happy to help you.
Manuel A. (45), Glattbrugg
Who pays for the mortgage certificate?
The mortgage certificate is paid for by the person taking out the mortgage. It provides the lender with collateral and, in exchange for a mortgage, gives them the right to initiate a forced sale of the property if the borrower does not fulfil their payment obligations.
Marco E. (34), Wädenswill
I have bought a house. Do I have to take over the mortgage certificate?
When buying a property, you can either use your own mortgage certificate or take over the existing one from the seller. If the buyer does not yet have a mortgage certificate, taking over the existing one is usually a more cost-effective option than having a new one issued.
Nadine A. (48), Chur
Should I cancel the mortgage certificate after my mortgage has been repaid?
Once the mortgage has been paid off in full, the mortgage certificate remains registered but is no longer encumbered. The following options are available:
- Keep it to reuse: This makes it easier to take out a new mortgage in the future and saves time and money.
- Transfer it to the owner: The lender can assign the mortgage certificate to the owner. In such case, the owner is responsible for retaining it.
- Transfer it to another person: A mortgage certificate can be transferred from one owner to another. For example, when a property is sold, the seller can transfer the mortgage certificate to the buyer if they no longer need it.
- Deletion from the land register: Fees apply for deleting a mortgage certificate. It usually only makes sense if the property is being sold, the buyer does not wish to take over the mortgage certificate and no new property is being purchased, or if multiple mortgage certificates exist.
Aline S. (38), Thalwil
Am I tied to my bank by a mortgage certificate?
As long as the certificate is used to secure a mortgage, you are bound to the lender. With the mortgage certificate, you give the bank the right to initiate a forced sale of the property if you do not fulfil your payment obligations. As soon as you or another financial institution repay the mortgage, the security is released and you can either take over the unencumbered mortgage certificate or assign it to another financial institution.
Luca E. (57), Richterswil
What happens if I lose my mortgage certificate?
If a paper mortgage certificate is lost, court proceedings must be initiated to have it officially declared invalid. If it can be proven to the court that the mortgage certificate has been lost and that all reasonable efforts have been made to locate it, the court will publish a notice for the registration of rights – usually in the Swiss Official Gazette of Commerce (SHAB) and, if applicable, in cantonal publications. If no one comes forward within one year to claim the mortgage certificate, it will be declared null and void at the end of the period. The person who has lost the mortgage certificate can then have a new one issued for a fee.
Manuel A. (45), Glattbrugg
Who pays for the mortgage certificate?
The mortgage certificate is paid for by the person taking out the mortgage. It provides the lender with collateral and, in exchange for a mortgage, gives them the right to initiate a forced sale of the property if the borrower does not fulfil their payment obligations.
Marco E. (34), Wädenswill
I have bought a house. Do I have to take over the mortgage certificate?
When buying a property, you can either use your own mortgage certificate or take over the existing one from the seller. If the buyer does not yet have a mortgage certificate, taking over the existing one is usually a more cost-effective option than having a new one issued.
Nadine A. (48), Chur
Should I cancel the mortgage certificate after my mortgage has been repaid?
Once the mortgage has been paid off in full, the mortgage certificate remains registered but is no longer encumbered. The following options are available:
- Keep it to reuse: This makes it easier to take out a new mortgage in the future and saves time and money.
- Transfer it to the owner: The lender can assign the mortgage certificate to the owner. In such case, the owner is responsible for retaining it.
- Transfer it to another person: A mortgage certificate can be transferred from one owner to another. For example, when a property is sold, the seller can transfer the mortgage certificate to the buyer if they no longer need it.
- Deletion from the land register: Fees apply for deleting a mortgage certificate. It usually only makes sense if the property is being sold, the buyer does not wish to take over the mortgage certificate and no new property is being purchased, or if multiple mortgage certificates exist.
Aline S. (38), Thalwil
Am I tied to my bank by a mortgage certificate?
As long as the certificate is used to secure a mortgage, you are bound to the lender. With the mortgage certificate, you give the bank the right to initiate a forced sale of the property if you do not fulfil your payment obligations. As soon as you or another financial institution repay the mortgage, the security is released and you can either take over the unencumbered mortgage certificate or assign it to another financial institution.
Luca E. (57), Richterswil
What happens if I lose my mortgage certificate?
If a paper mortgage certificate is lost, court proceedings must be initiated to have it officially declared invalid. If it can be proven to the court that the mortgage certificate has been lost and that all reasonable efforts have been made to locate it, the court will publish a notice for the registration of rights – usually in the Swiss Official Gazette of Commerce (SHAB) and, if applicable, in cantonal publications. If no one comes forward within one year to claim the mortgage certificate, it will be declared null and void at the end of the period. The person who has lost the mortgage certificate can then have a new one issued for a fee.
