Subsidies

The subsidy of an object consists of an interest-free loan, which must be repaid from the fifth year after the subsidy is disbursed - subject to the object being rented out. The loan for dense construction is additionally received when building or buying an object in dense superstructure.

The loan is granted interest-free and corresponds to an amount of CHF 60,000 for a minimum net living space of 60 m2. The loan increases by CHF 1,000 for each additional full square meter, so that for a property with the maximum permissible net living space of 150 m2, the loan amounts to CHF 150,000.

An additional "second" loan of one-third of the "first" loan is provided when residential units are constructed or acquired in dense overlay development. Loans are disbursed as a total amount and must also be repaid as a total amount.

Example: "first" loan of CHF 150,000  ->  "second" loan CHF 50,000

The WBF loan must be secured in the land register in the second rank and with a prohibition of sale. The bank mortgage in the first rank may not exceed 65% of four times the amount of the loan. Any residual financing must be arranged with the bank.

Calculation example for a home with a net living area of 150 m2 in dense construction is subsidized with an interest-free loan in the amount of CHF 150,000 and a second interest-free loan for dense construction in the amount of CHF   50,000. CHF 200,00 in subsidies will be paid.

The mortgage security is structured as follows:

  • Bank mortgage (process in the 1st rank)                max. CHF 390,000
  • WBF - 2nd rank mortgage                                         CHF 200,000

The disbursement of the grant funds takes place:

  • in theconstruction of an owner-occupied home after its completion and the presentation of the final account;
  • in the acquisition of an owner-occupied home after its execution in the land register;
  • in the renewal of an owner-occupied home after the land registry execution and completion.

When the subsidy funds are disbursed, the legal term of the interest-free loan begins. The bank may pre-finance the loan granted. The subsidy funds are transferred to the construction loan account maintained at the bank.