
With a few clicks and numbers to your personalized affordability calculation.
With our mortgage calculator, you can make an accurate calculation for your dream home and, if needed, directly submit your financing request with us online. The calculator helps you quickly and clearly determine the monthly costs, the required equity share, and the loan-to-value ratio of your property. Within just a few minutes, you’ll get a clear assessment of your financial possibilities. Combined with our mortgage comparison, you’ll also find the most attractive offers to optimize your financing.
What is affordability?
Affordability shows whether you can afford the property in the long term. It is calculated by comparing your annual housing costs (interest, amortization, and maintenance) to your income. The rule of thumb: Housing costs in Switzerland should not exceed 33% of your gross income. This calculation method protects borrowers from financial overburden and ensures that they can continue to service the mortgage even in the event of rising interest rates or unforeseen expenses.
What is the loan-to-value ratio?
The loan-to-value (LTV) ratio indicates what percentage of the purchase price is financed through the mortgage. In Switzerland, the maximum LTV ratio is typically 80%, meaning at least 20% of the purchase price must be covered by equity. Stricter requirements often apply to investment properties. Equity refers to the financial resources you personally contribute to purchasing a property. This can come from savings, pension fund assets (second pillar), funds from pillar 3a, or gifts and advances on inheritance.
What costs arise after the mortgage is finalized?
Interest: Interest represents the cost you pay for the borrowed capital. The interest rate depends on the type of mortgage chosen: With a fixed-rate mortgage, the interest rate remains constant throughout the term, providing predictability. With a SARON mortgage, the interest rate is linked to the money market, making it temporarily lower but more volatile. Interest costs are typically billed annually or monthly. Even if the market interest rate drops, a calculated interest rate of 5% is often applied when assessing affordability to account for future interest rate risks.
Amortization: Amortization refers to the gradual repayment of the mortgage. In Switzerland, typically only the portion of the mortgage exceeding 65% of the property value needs to be amortized. Repayment must generally be completed within 15 years or by retirement age. There are two types of amortization: Direct Amortization – The mortgage is reduced through regular payments, which lowers interest costs over time; Indirect Amortization – Instead of directly repaying the mortgage, payments are made into a pillar 3a account, which serves as collateral. This approach is often tax-advantageous.
Maintenance: Regular maintenance costs are necessary to preserve the property’s value and usability over the long term. These include: Minor Maintenance – Repairs to windows, heating systems, electrical appliances, or sanitary installations; Major Renovations – Replacing roofs, facades, kitchens, or bathrooms, typically required every 10–20 years. It is recommended to budget around 1% of the property value annually for maintenance and renovation expenses.
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