Calculators

Mortgage simulator

Our mortgage simulator lets you easily calculate your borrowing capacity and monthly costs.

Mortgage Calculator

Property purchase price The total purchase price of the property to be acquired.

Household income Your annual income and that of your partner, including 13th salary and bonus.

Shareholders' equity Shareholders' equity must be at least 20%.

Mortgage 80%

Shareholders' equity: 20%

Insufficient equity capital

Gross annual income is insufficient

Loan amount: CHF 800'000

To simulate a mortgage in Switzerland, you can use our online calculator, where you'll need to add the price of the home, your own funds, and your household income. Household income is calculated at a rate of 5%, to ensure that monthly expenses can be met. As for your own funds, they must amount to at least 20% of the total price of the property.

Calculating shareholders' equity

In Switzerland, banks require a personal contribution of 20 % of the property value. Of this 20 %, at least 10 % must come from your own funds (personal savings) and not from another loan. The remaining 10% can come from 2nd pillar. It is also possible to withdraw your 3rd pillar assets entirely. By taking all these factors into account, you can calculate your equity.

Calculate mortgage amount

The mortgage is generally equal to 80 % of the property's value. If the property is worth CHF 1,000,000, the mortgage would be CHF 800,000. It's also possible to make a larger contribution, depending on your financial situation. personal situation financial. This can be particularly interesting if interest rates become very high.

Choosing the type of mortgage

There are several types of mortgage with different rates. The interest rate will depend on the type of mortgage you choose and market conditions. You can obtain these rates from the banks or make a comparison. Here's an overview of possible mortgage types:

Fixed-rate mortgage

A fixed-rate mortgage is a mortgage where the interest rate is fixed for a specific period of time. fixed termwhich can vary between 2 and 15 yearsor even longer. During this period, the rate does not change, which means that your monthly payments will remain constant, regardless of market fluctuations.

Variable-rate mortgage

A variable-rate mortgage has an interest rate that can change over time. periodically based on financial market conditions. The rate is generally revised every 3 or 6 months based on reference interest rates. If interest rates fall, your monthly payments may fall, but if they rise, your payments may rise.

SARON mortgage

The SARON (Swiss Average Rate Overnight) is a reference rate that has replaced LIBOR in Switzerland for variable-rate mortgages. SARON reflects the interest rate on very high-yield loans. short-term (overnight) between Swiss banks. Mortgages based on SARON have an interest rate that fluctuates according to this reference rate. In times of low interest rates, SARON mortgages may offer more attractive terms, but it's important to bear in mind that there is a risk that the interest rate may fall. sudden increase exists.

Notary and registration fees

In Switzerland, notary fees generally vary between 0.5 % and 2 % of the property value, depending on the canton. They must be added to the equity. In addition registration fees Land registry fees covering the registration of the property in your name also vary from canton to canton, and represent 0.2 % to 1 % of the purchase price.

Depreciation

There are two main amortization methods: direct amortization and indirect amortization, designed to gradually repay the borrowed capital, plus interest, over a given period.

Direct Depreciation

With direct amortization, the mortgage amount gradually decreases over the years. Each payment you make reduces both the principal amount of themortgage (capital) and interest. Each capital repayment reduced directly total amount of the mortgage, resulting in lower interest payments in subsequent periods.

Indirect Depreciation

With indirect amortization, you don't pay down the mortgage principal directly. Instead, you put the amount you would have used to repay the principal into a savings account linked to retirement provision, usually a Pillar 3a account. At the end of the amortization period, the amount saved is used to reimburse all or part of the mortgage.

Frequently Asked Questions

What are transfer duties and how are they calculated?

Transfer duties, also known as transfer taxesare levied on the transfer of a property. The rate varies from canton to canton, generally between 1 % and 3.3 % of the value of the property.

What is the rental value tax?

The rental value is a fictitious income that the tax authorities consider you generate by living in your own house or apartment.

What are the current interest rates?

Interest rates range from 1.3% to 2.5% and vary according to the type of mortgage chosen.

What's the difference between direct and indirect amortization of a mortgage?

With direct amortization, you repay a portion of your mortgage principal directly with each payment. With indirect amortization, you don't repay the mortgage principal directly. Instead, you invest the money you would have used to repay the debt in a pension account (pillar 3a account).