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Mortgage affordability: what can I finance?
The maximum price you can finance based on your income and equity, using the 5% notional rate applied by Swiss banks.
CHF 875’000.–
maximum price you can finance
Minimum own funds for this type of property: 20% of the price.
Notional costs: 31.7% of income · This property is affordable under the usual rules.
How is it calculated?
Swiss banks check that notional costs do not exceed one third of gross income: interest at 5%, amortisation of the part of the mortgage above 65% of the price within 15 years, and maintenance costs of 1% of the price a year. Equity must be at least 20% of the price.
Minimum own funds are 20% of the price for a primary residence, and more for an investment or commercial property (25 to 30%). At least 10% of the price must be “hard” own funds, outside the 2nd pillar: the pillar can cover the rest for a primary residence, but not for an investment or commercial property.
Indicative, non-binding results. For personal advice, contact us or ask Georges.
Frequently asked questions
Can I use my pillar 2 pension?
Yes, for a home you live in, but at most half of the minimum equity (10% of the price) may come from pillar 2.
Why 5% when rates are lower?
It is a prudent notional rate: the bank checks that you could cope with rising rates over the whole term of the loan.
Are purchase costs included?
No: budget for them on top of your equity. See our purchase costs calculator.