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Unlike a mortgage, which is a lien directly linked to a specific debt, a mortgage note (mortgage certificate) is a debt instrument that incorporates the real estate pledge.

  • The note exists independently. Even if the loan is repaid, the mortgage note remains valid and can be kept by the owner.
  • Once repaid, it can be reused for a future loan (renovations, new purchase) without going back to a notary, which can save significant costs.
  • It represents a paper (or digital) value that is handed over to the bank as collateral.


Mortgage note: definition

Under Swiss law, a mortgage note is a real estate pledge instrument that incorporates a personal claim secured by a property (Article 842 of the Swiss Civil Code).


Unlike a traditional mortgage, it has the particularity of being a transferable right that legally links the debt to the property. It officially certifies that a property owner has contracted a debt and that their property serves as collateral for the creditor. Today, this instrument exists in two distinct forms:

  • The registered mortgage note (since 2012): this dematerialized form is now the standard because it facilitates exchanges between banks and eliminates the risks associated with losing a physical document.
  • The paper mortgage note: this is a physical security that must be kept in a safe place. Its handling is more cumbersome, and losing it leads to long and costly court procedures to have it cancelled.


Good to know: the mortgage note is established by a public officer, generally a notary. Once the deed is signed, the notary files a request for registration. It is the entry in the land register that legally creates the mortgage note.


How does a mortgage note work?

As long as the debt exists, the bank holds the rights attached to the document. In the event of default, it can initiate foreclosure proceedings in order to recover the unpaid amounts. A clear distinction is therefore made between the pledge instrument and the actual debt.


When pledged, the mortgage note serves as overall collateral even though its nominal value remains fixed while the debt gradually decreases through amortization.


Once the loan has been fully repaid, the mortgage note is not cancelled but simply returned to the owner.


This autonomy allows it to survive successive financing cycles and offers the possibility of reusing it for future financing needs without having to call on a notary again.


How much does a mortgage note cost?

Creating a mortgage note represents a significant initial investment when purchasing a property. The fees are regulated and mainly depend on the amount of the guarantee you wish to register. These costs are charged at the time the deed is executed and registered in the land register.


The total cost generally consists of several expense categories:

  • Land register fees: these compensate the administration for registering the title. The tariff varies by canton and often applies a rate proportional to the nominal amount.
  • Notary fees: the notary receives fees for drafting the public deed and providing legal advice related to the creation of the pledge.
  • Cantonal taxes: some cantons levy stamp duties or taxes on pledge deeds, which can significantly influence the total cost depending on the property’s location.


Our advice: make sure to include these additional costs (which can represent around 1–2% of the loan amount) in your overall financing plan from the start.


Can a mortgage note be modified or transferred?

The mortgage note is a flexible instrument that can be adapted throughout the life of the property owner. It is not fixed and can be administratively modified to meet new financing needs or changes in ownership.


Transfer of the creditor

If you change banks, the mortgage note is transferred to the new institution. This is a simple operation that avoids paying the creation costs again.


Increase of the amount

To finance renovations, you can increase the nominal value of an existing mortgage note. This requires a notarial deed but costs less than creating a completely new title.


Transfer during a sale

The seller generally transfers their mortgage notes to the buyer. This allows the buyer to avoid the costs of creating new guarantees, which can be a significant selling argument.


This flexibility of transfer and modification ensures continuity in the financing of the property and minimizes notarial costs over the long term for successive owners.


FAQ: Learn more about the mortgage note

Can a mortgage note be cancelled after the loan is repaid?

It is generally not recommended to cancel a mortgage note in the land register once the loan has been repaid. By keeping it, you retain a guarantee that has already been paid for and that can be reused for a future renovation project or when selling your property, saving the buyer the cost of creating a new one.


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

A registered mortgage note exists only as an electronic entry in the land register, which facilitates transfers between banks. A paper mortgage note is a physical security that must be physically delivered to the creditor. If the paper version is lost, a court procedure is required to cancel it before any further operation.


Who pays the costs of creating the mortgage note?

According to common practice, the costs related to the creation of the mortgage guarantee are entirely borne by the buyer or borrower. These costs are in addition to transfer taxes and the fees related to the property purchase deed itself.


Can the same mortgage note be used for several loans?

Yes. A mortgage note can serve as collateral for several loan tranches or different loans with the same institution, as long as the total debt does not exceed the nominal value stated in the title. If the debt exceeds this amount, the mortgage note must be increased or a second-ranking title must be created.


What happens if I lose my paper mortgage note?

Losing a paper title blocks any transaction. You must initiate a legal procedure known as a declaration of nullity before a judge in order to cancel the lost title. This process often takes several months. To avoid this risk, you can ask a notary to convert your paper title into a registered mortgage note.