Swiss Mortgage Calculator

How much property can you afford? Compute affordability and housing costs by Swiss banking rules — free, no sign-up, in 10 seconds.

Your inputs

Combined gross income of all earners in the household.

Available equity including pension fund withdrawals. Swiss banks require at least 20 % of the purchase price.

Maximum purchase price
CHF 1'033'784
Highest affordable price under Swiss banking practice (1/3 rule, LTV ≤ 80 %).
Mortgage
CHF 733'784
LTV 71.0 %
Housing costs
CHF 4'167
per month
Imputed interest (5 %)CHF 36'689
Maintenance & ancillary (1 %)CHF 10'338
2nd mortgage amortizationCHF 2'973
Total housing costsCHF 50'000

Swiss standard rules

These are the parameters Swiss banks apply.

20 %
Equity
At least 20 % of the purchase price. 10 % must be hard equity (not from pension fund).
5.0 %
Imputed interest rate
Banks calculate with 5 %, independent of the current market rate.
1.0 %
Maintenance
1 % of property value per year for upkeep and ancillary costs.
1/3
Affordability
Housing costs must not exceed 1/3 of gross income.

Worked example: home for CHF 1'000'000

A typical Swiss affordability calculation for a single-family home.

Purchase priceCHF 1'000'000
EquityCHF 200'000 (20 %)
1st mortgage (max 2/3)CHF 666'667 (66.67 %)
2nd mortgageCHF 133'333 (13.33 %)
Imputed interest (5 %)CHF 40'000 / Jahr
Maintenance (1 %)CHF 10'000 / Jahr
2nd mortgage amortization (15 y.)CHF 8'889 / Jahr
Total housing costsCHF 58'889 / Jahr
Required gross incomeCHF 176'667 / Jahr

SARON vs. Fixed — which to choose?

Both models have trade-offs. Here are the key arguments — your decision depends on your risk tolerance.

SARON benefits
  • • Currently typically cheaper than long-term fixed mortgages.
  • • Can be terminated or converted into a fixed-rate mortgage at any time.
  • • Benefits immediately when the SNB cuts rates.
Fixed-rate benefits
  • • Full budget certainty over the entire term.
  • • Protection against rising rates — important if affordability is tight.
  • • No refinancing spikes during downturns.

Tranching — split risk intelligently

In Switzerland it is common to split a mortgage into multiple tranches with different terms and rate models. This avoids the risk of the entire mortgage expiring in an unfavourable rate environment and needing to be refinanced at once.

Typical strategy: one SARON tranche for flexibility, combined with two or three fixed-rate mortgages of different terms (e.g. 5 + 8 + 10 years). This smooths interest burden and lets you re-decide on each renewal.

What Swiss banks check when financing a property

When buying a home in Switzerland, banks look at two key ratios: loan-to-value (LTV) and affordability. LTV cannot exceed 80 % of market value — you need at least 20 % equity. Of that, at least half (10 % of the purchase price) must be hard equity, meaning not from pension fund withdrawals.

Affordability follows a simple rule of thumb: your annual housing costs must not exceed one third of your gross income. Crucially, the bank does not use the current market rate but a calculatory imputed rate of 5 %. That is conservative and protects you from future rate hikes.

The mortgage is split into two tranches: the first mortgage covers up to 66.67 % of the purchase price and does not need to be amortized. The second mortgage sits between 66.67 % and 80 % and must be repaid within 15 years or until retirement.

Maintenance and ancillary costs are estimated at a flat 1 % of the purchase price per year. For a CHF 1m home that is CHF 10'000 annually — covering heating, repairs, insurance and renovations.

Browse properties
Find properties for sale that match your budget.
Buyer's guide
Learn more about mortgages, financing and valuation in Switzerland.

Disclaimer: This calculator uses standard banking parameters: imputed interest 5.0 %, maintenance 1.0 %, affordability 33.3 %, 2nd mortgage amortization over 15 years. Individual lending decisions depend on the full credit assessment by your bank. Not financial advice.