Home Loan Promissory Note Template for Switzerland

The Home Loan Promissory Note is a crucial document in Swiss real estate financing, used when individuals or entities seek to borrow money for residential property purchase or refinancing. This document type combines elements of a promissory note with mortgage security provisions, following strict requirements under Swiss law. It's particularly important in the Swiss market where most residential properties are financed through mortgage loans. The document must be carefully structured to comply with both the Swiss Code of Obligations regarding debt instruments and the Swiss Civil Code's provisions on property rights and mortgages. It typically includes comprehensive details about the loan terms, property security, borrower obligations, and enforcement mechanisms, making it a fundamental tool in Swiss real estate transactions.

1. Parties: Identification of the lender (typically a bank) and borrower with full legal names and addresses

2. Background: Brief context of the loan purpose and property acquisition

3. Definitions: Key terms used throughout the document

4. Loan Amount and Currency: Specification of the principal amount and currency of the loan

5. Interest Rate: Details of the applicable interest rate (fixed or variable) and calculation method

6. Term and Repayment: Duration of the loan and repayment schedule

7. Security: Description of the mortgage security and property details

8. Representations and Warranties: Borrower's confirmations regarding their financial status and property ownership

9. Borrower's Obligations: Ongoing obligations including property maintenance and insurance requirements

10. Events of Default: Circumstances constituting default and consequential rights of the lender

11. Enforcement: Lender's rights and procedures in case of default

12. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdictional arrangements