Equity
Banks usually lend at most 80% of the lending value. At least 10% of the price must be “hard” equity, not from your pension fund: savings, pillar 3a, gifts or advances on inheritance.
The affordability calculation
The bank uses an imputed interest rate of around 5%, whatever current rates are. It adds about 1% of the property value for maintenance and running costs, plus amortisation. Together these should not exceed about one third of gross income.
| Example: CHF 1’000’000 home | Amount |
|---|---|
| Equity (20%) | CHF 200’000 |
| Mortgage (80%) | CHF 800’000 |
| Imputed interest 5% | CHF 40’000 / year |
| Maintenance 1% | CHF 10’000 / year |
| Amortisation (2nd mortgage over 15 years) | CHF 9’000 / year |
| Total housing costs | CHF 59’000 / year |
| Gross income needed (×3) | approx. CHF 177’000 / year |
Amortisation
The second mortgage, the part above two thirds of the value, is usually repaid within 15 years or by retirement, directly or indirectly through pillar 3a.
Try it yourself
The calculator on the Helvenest home page gives you a first estimate of the monthly cost. Your bank makes the binding assessment.
Frequently asked questions
Why 5% when rates are lower?
Banks check whether you could still afford the mortgage if rates rose. The imputed rate is set high on purpose.
Does the income of both partners count?
Yes, for a joint purchase banks usually use the combined household income.
General information without guarantee. Cantonal rules and your contract may differ; get advice for your situation.
