Calculate Affordability — Mortgage Calculator Switzerland

Affordability Calculation for Swiss Mortgages

Affordability is the central check every bank makes before granting a mortgage. The rule is simple: notional housing costs may not exceed 33% of gross income. Sounds simple, but has some pitfalls.

Swiss banks do not use the current market rate, but a notional interest rate of 5%. This buffer is intended to ensure that the borrower can service their mortgage even when interest rates rise. For a purchase price of CHF 1 million and 75% loan-to-value, the bank therefore calculates CHF 37,500 interest per year — even if the current rate is significantly lower.

Notional costs include, in addition to interest, the amortisation of the 2nd mortgage (the portion above 66.7% must be repaid within 15 years) and ancillary costs (flat 1% of property value per year).

For investment properties, stricter rules apply than for owner-occupied homes: the bank requires at least 25% equity (instead of 20%), and rental income is only partially counted as income — depending on the bank at 70–80%.

immometrics calculates affordability exactly to these Swiss standards and immediately shows you whether your financing is realistic.