What does a mortgage note cost?

Setting one up costs notary and land registry fees of roughly 0.1 to 0.3 % of the pledged sum, depending on the canton, sometimes at fixed rates. On a mortgage of CHF 800'000 that quickly adds up to one to two thousand francs or more. The purchase costs calculator uses your canton's rates.

Can I take over the seller's mortgage note?

Yes, and that is the usual way: existing mortgage notes are transferred and increased if needed, rather than created anew. You then only pay for the difference. Ask early which mortgage notes encumber the property; it is in the land registry extract.

What is the difference between a register and a paper mortgage note?

The register mortgage note has existed since 2012 purely as an entry in the land registry and is the standard today. The paper mortgage note is a physical security; if it is lost, an expensive court cancellation procedure is needed. Older properties often still carry paper notes, which can be converted at the change of ownership.

Who holds the mortgage note during the mortgage?

The bank holds it as security, usually by way of a security transfer. Pay off the mortgage and the bank releases it. Best keep the released note in place rather than deleting it: at a later financing it saves you paying the set-up costs all over again.

Huusfink Guide26 August 2026

The mortgage note (Schuldbrief): the collateral behind your mortgage

You will probably never hold it in your hand, but without it there is no mortgage: the mortgage note (Schuldbrief) is the lien on your house, and it shows up in your completion statement.

What the mortgage note is

The bank lends you several hundred thousand francs and wants more than your promise in return. The mortgage note is a lien on the property: it certifies a claim and pledges your land for it. If you don't pay the mortgage, the bank can realise the collateral. It is created by notarisation and entry in the land registry, today almost always as a register mortgage note with no paper.

What it costs

Creation costs notary and land registry fees, roughly 0.1 to 0.3 % of the pledged sum depending on the canton. That sounds small, but on a mortgage of CHF 800'000 it is real money, and it belongs to the purchase costs you pay from savings, not from the mortgage. Important: the pledged sum of the mortgage note follows the mortgage, not the purchase price.

The money-saver: take over instead of creating anew

→Read the land registry extract: it says which mortgage notes already encumber the property and for what sum.
→Take over existing notes: mortgage notes are tied to the property, not the owner. A transfer is considerably cheaper than a new creation.
→Only the difference is new: if the existing pledged sum doesn't cover your mortgage, the note is increased or a second one created, and you pay only for the delta.
→Convert paper: have old paper mortgage notes converted into register notes at the change of ownership; it spares you trouble later if one goes missing.

And at the end?

Once the mortgage is paid off, the bank releases the mortgage note to you. Don't rush to delete it from the land registry: a free mortgage note in the drawer costs nothing and makes a later financing, say for a conversion, faster and cheaper. When you sell, it is simply passed on to the buyer's financing, just as you took it over.

Frequently asked questions

The purchase costs calculator shows you transfer tax, notary, land registry and mortgage note for all 26 cantons.

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