In the News

Highest Mortgage Debt in World

The high cost of housing, coupled with a tax regime that discourages capital repayments, saddles the Swiss with the highest mortgage debt per capita in the world. The Swiss Home Owners’ Association was most concerned that out of the 1,950 CHF billion, that people had invested in the Swiss housing market, around a third was in the form of mortgage debt. The principal cause has been blamed on a special home ownership levy that adds the nominal rental value of the property to the owner's taxable income. This can be offset by mortgage interest payments, taking away any incentive to pay off the loan.

Despite the high cost of housing, a rising population and favourable economic conditions have seen a rise in demand for home ownership. Credit Suisse predicts demand for more than 40,000 new homes per year until 2010.