Mortgage calculator

A Swiss bank rule of thumb: calculated housing costs (5 % mortgage interest, second mortgage amortisation, 1 % ancillary costs, plus leasing and loan payments) must not exceed one third of gross income. Above 33 % hardly any bank will lend. The calculator shows green up to 30 %, amber up to 33 % and red above.

At least 20 % of the purchase price. Of this, at least 10 % must be hard equity, meaning not from your pension fund (savings account, securities, Pillar 3a, a gift or an advance on inheritance). The remaining 10 % may be drawn from or pledged against your Pensionskasse (employer pension fund). On top come about 3 % purchase costs for notary, land registry and transfer tax, also from your own money. If you are retired at purchase or will be within a year, the bank grants no second mortgage and you need a third of the price.

Banks assess affordability using a conservative 5 % rate, even when the current market rate is around 1.5–2 %. The buffer ensures you can still afford the mortgage if rates rise. Your actual monthly cash outflow is usually significantly lower.

The part of the mortgage above two thirds (66.7 %) of the purchase price is the second mortgage. You pay it off within 15 years, by retirement at the latest. The first mortgage (up to two thirds) usually stays in place. After retirement the bank therefore only counts the first mortgage, with 5 % interest and 1 % ancillary costs, without amortisation, and compares this with your pension from AHV and pension fund.

Yes, as a withdrawal or a pledge, but only for the part above the 10 % hard equity. Until age 50 you can use your full balance including vested benefits. From age 50, at most the higher of the vested benefit you had at 50 (shown on your pension fund statement) and half of your current balance. In the last 3 years before retirement it is no longer possible, and a withdrawal requires at least CHF 20'000. Buy-ins from the last 3 years cannot be withdrawn. You pay tax on the withdrawal, separately from your other income and at a lower rate, and your later pension decreases. A pledge costs no tax at purchase and leaves your pension intact, but your mortgage stays higher.

When buying, you pay notary, land registry and, depending on the canton, a property transfer tax, together about 3 % of the price, from your own money. Only enter what goes into the purchase after that, without your reserve. Example: if the flat costs 800'000 and you have 200'000 available, about 24'000 goes to purchase costs and 176'000 is your equity excluding purchase costs. If part comes from Pillar 3a or the pension fund, deduct the tax on it as well.