myFIREplan.ch
Calculate

Mortgage affordability calculator

Swiss banks do not ask whether you can pay today’s rate. They ask whether you could pay 5 %. Here is that test, with the own-funds rules.

CHF / year

Salaries before deductions, including a partner’s. Banks count bonuses only in part.

CHF
CHF

Savings, 3a and pension-fund money you put in.

CHF

Early withdrawal or pledge of pension-fund money. At least 10 % of the price must come from other money.

age

Your result

Share of income
35.3%
Highest affordable price
CHF 960’000
Mortgage
CHF 780’000
Loan to value
78.0%
Imputed interest
CHF 39’000 / year
Maintenance
CHF 10’000 / year
Amortisation
CHF 7’553 / year
Imputed yearly cost
CHF 56’553 / year

Your result, explained

At CHF 1’000’000, the test fails: see the notes below. With these funds and this income, the highest price that passes is about CHF 960’000.

Imputed costs exceed a third of gross income. Most banks stop here, however low the market rate is.

The test follows the Swiss Bankers Association’s minimum rules and common bank practice. Each bank sets its own imputed rate, maintenance and view of retirement income: ask yours.

Estimates for planning, not advice. Use at your own risk. Read the full disclaimer

How it is calculated

  • Mortgage = price minus own funds.
  • Yearly imputed cost = mortgage × 5 % + price × 1 % maintenance + amortisation.
  • Amortisation: the part of the mortgage above two thirds of the price is repaid in equal steps within 15 years, or by age 65 if that comes sooner.
  • Affordable when the yearly cost is at most a third of gross household income, own funds are at least 20 % of the price, and at least 10 % of the price is not pension-fund money.
  • Highest affordable price: the tool raises the price until one of the three tests fails.

The rules on own funds and amortisation are the Swiss Bankers Association’s minimum requirements, recognised by FINMA. The 5 %, the 1 % and the one-third limit are common bank practice; each bank sets its own. Whether buying fits a FIRE plan at all is a separate question: see rent or buy and rent or buy on the way to FIRE.

Frequently asked questions

Why 5 % when mortgages cost much less?

Banks test whether you could still carry the home if rates rose. The imputed rate is a stress test, not what you pay.

Can I use my pension fund for the down payment?

Yes, by early withdrawal or pledge, but at least 10 % of the price must come from other money, such as savings, 3a or a gift. Withdrawing pension money also lowers your later pension.

What changes at retirement?

Banks recheck affordability against your pension income, which is usually lower than your salary. Many want the second mortgage repaid by retirement, so plan the amortisation early.

Related tools

Related reading

Last reviewed: