How much equity do I need?

Usually at least 20% of the purchase price, of which at least 10% must come from sources other than 2nd pillar (BVG/LPP) pension assets. Purchase costs such as notary and land register fees are additional.

How much do I need to earn to afford a home in Switzerland?

Lenders typically require that theoretical housing costs stay below one third of gross household income, calculated with an imputed interest rate (higher than the real rate, used only for the test) of about 5% plus amortisation and maintenance — not with today's low rates.

Why does the calculator use 5% interest?

It is the standard imputed rate used by Swiss lenders as a stress test, so an affordability figure stays valid even if mortgage rates rise well above current levels.

What counts as maintenance costs?

Banks generally assume around 1% of the property value per year for maintenance and incidental costs, covering renovation reserves, building insurance and running expenses.

Property

Mortgage Affordability Calculator

Swiss lenders do not ask what you can pay today — they ask whether you could still pay if interest rates rose sharply. This calculator applies the standard Swiss rules to estimate the property price your income and equity support, and what the yearly cost would look like.

Your finances

Gross annual household income

Stable income only — banks often count bonuses only partially.

Available equity

Savings, securities, pillar 3a and any pension fund money you would use.

Share of equity from pension fund

At least 10% of the price must come from outside the 2nd pillar (BVG/LPP).

The property

Property price

Assumptions

Imputed interest rate (bank test)

Most Swiss lenders test at around 5%, regardless of today's rates.

Interest rate you expect to pay

Maintenance & ancillary costs

Share of the property value per year, typically 1%.

Amortisation period

Amortisation (the gradual repayment of your mortgage) is the time to pay the mortgage down to two thirds of the property value.

Saved scenarios

Scenarios are stored only in this browser on this device. Clearing your browser data removes them.

Maximum estimated property price

CHF 849'057

Your income is the binding constraint: it carries a price of about CHF 849'057, while your equity would allow up to CHF 1'250'000.

Probably not approved as entered. At CHF 1'100'000 the estimated housing cost is 40.9% of gross income (limit 33.3%).

Required equity (20%)

CHF 220'000

Of which at least CHF 110'000 outside the 2nd pillar (BVG/LPP)

Mortgage amount

CHF 850'000

1st: CHF 733'333 · 2nd: CHF 116'667

Affordability ratio

40.9%

Housing cost at the imputed rate ÷ gross income

Annual housing cost (bank test)

CHF 61'278

CHF 5'106 per month

Annual cost at your actual rate

CHF 34'078

CHF 2'840 per month

Interest at your actual rate

CHF 15'300

Versus CHF 42'500 in the bank's test

What makes up the yearly cost

The bank's affordability test, split into its three parts. Only interest changes with market rates.

Interest and maintenanceAmortisation (builds your equity)

The Swiss affordability rules in plain language

The one-third rule. Your total yearly housing cost — interest, amortisation and maintenance — must stay below one third of your gross household income. Crucially, the interest in that test is not the rate you negotiate but an imputed rate of about 5%. That buffer is what protects you, and the bank, if rates rise.

The 20% equity rule. At least a fifth of the purchase price must be your own money, and at least half of that fifth — 10% of the price — must come from somewhere other than your pension fund. Notary fees, land register fees and any property transfer tax come on top and are not part of the 20%.

Amortisation to two thirds. The part of the loan above 66.7% of the property value is the second mortgage, and it must be repaid within 15 years — this repayment is called amortisation. In this scenario that is CHF 7'778 per year — money that reduces your debt rather than disappearing, so it is a cost to your monthly budget but not to your overall wealth.

Maintenance. Banks assume around 1% of the property value per year for upkeep, renovations and ancillary costs. Owners frequently underestimate this figure.

Lenders test affordability with an imputed ("calculatory") interest rate — typically 5% — not the rate you actually pay, so that you could still carry the mortgage if rates rise.
Maintenance and ancillary costs are assumed at 1% of the property value per year.
Total housing costs at the imputed rate must not exceed one third (33.3%) of gross household income.
At least 20% of the purchase price must be equity, of which at least 10% of the price must come from outside your pension fund (2nd pillar, BVG/LPP).
The mortgage above 66.7% of the property value (the "second mortgage") must be repaid (amortised) within 15 years.
Purchase costs such as notary fees, land register fees and property transfer tax (which vary by canton, roughly 0.5–5% of the price) are not included and must be paid from additional funds.
Bank lending policies differ: some apply stricter income tests, count bonus income only partially, or require faster amortisation. Some also cap lending for second homes or investment properties.
Not modelled: imputed rental value (Eigenmietwert — a notional rental income the tax office adds to your income if you own your home) and the tax effect of deducting mortgage interest and maintenance, both of which change your actual net cost.

These are approximate estimates based on typical Swiss lending rules — not a financing offer, credit assessment or financial advice.

Individual banks apply their own criteria, and taxes such as the imputed rental value (Eigenmietwert) are not modelled. Speak with your lender or a mortgage adviser before committing. Your inputs stay in your browser.

How much equity do I need?: Usually at least 20% of the purchase price, of which at least 10% must come from sources other than 2nd pillar (BVG/LPP) pension assets. Purchase costs such as notary and land register fees are additional.
How much do I need to earn to afford a home in Switzerland?: Lenders typically require that theoretical housing costs stay below one third of gross household income, calculated with an imputed interest rate (higher than the real rate, used only for the test) of about 5% plus amortisation and maintenance — not with today's low rates.
Why does the calculator use 5% interest?: It is the standard imputed rate used by Swiss lenders as a stress test, so an affordability figure stays valid even if mortgage rates rise well above current levels.
What counts as maintenance costs?: Banks generally assume around 1% of the property value per year for maintenance and incidental costs, covering renovation reserves, building insurance and running expenses.

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Swiss Salary

Estimate net salary after AHV, ALV, BVG and tax deductions.

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Pillar 3a

Estimate tax savings and the long-term value of 3a contributions.

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Compound Interest

Project how contributions and returns grow over time.

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Mortgage Affordability Calculator

Saved scenarios

What makes up the yearly cost

The Swiss affordability rules in plain language

Assumptions usedFor anyone curious about exactly how we calculate — feel free to skip this part.

Frequently asked questionsShort answers to the questions that come up most often with this calculator.

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