Construction Loan

You wish to finance the construction or renovation of a property by paying for the building work as it progresses? The construction loan is the solution.

The interest is calculated on the amount of the loan actually used

The bank pays the invoices in line with the progress of the building work

The construction loan can be partially consolidated before the end of the building work

The essentials

For the construction, renovation or transformation of a property

You finance your construction or renovation by means of a current account which is debited with the invoice amounts submitted as the building work progresses. When the building work is finished, the loan is consolidated into a mortgage loan. The interest due for the duration of the construction loan (construction loan interest) is included in the consolidation.

Interest is calculated fairly

The interest is calculated on the amount of the loan actually used. You only pay for the work which has been completed.

Further information

Lending rate and commission

For current rates, please ask your adviser
Quarterly commission: ¼ % calculated on the highest debit balance

Fees and charges

From a construction account: account maintenance fee CHF 15 per quarter, including payment transaction fees
From another type of account:
- Payment transaction fees:
  - For payments in Switzerland: included in the account maintenance fees
  - For payments abroad: CHF 25 per payment abroad
- Other fees: refer to the brochure
Handling fee: 1‰ (minimum CHF 500)