An affordability calculation shows you whether you can afford your dream home over the long term too. Here you will find everything you need to know about affordability.

The role of affordability when purchasing residential property

An affordability calculation indicates whether you can afford your desired property over the long term too. To calculate affordability in each individual case, the running costs of the property are compared to your income.

As a rule of thumb: a property is considered affordable if the monthly costs do not exceed a third of your gross income. Mortgage providers therefore see your income as an important criterion in determining whether or not you can be granted the mortgage you want.

Please accept marketing cookies so you can watch this video. Cookie settings

How is affordability calculated?

The monthly costs incurred in the affordability calculation comprise the imputed interest, the amortisation costs and the ancillary costs for your property.

Imputed interest rate

Mortgage institutions use the “imputed rate of interest” for the affordability calculation. At 5%, it is much higher than the current rates, so the costs for the mortgage are noticeably higher when calculating affordability than in the actual mortgage offer. In this way, the financial institutions ensure that the financing remains affordable even when interest rates rise.


The costs for repayment (amortisation) of the second mortgage are also factored into the affordability.

Ancillary costs

Ancillary costs are the maintenance costs for the property. These include insurance premiums as well as heating and electricity costs.

We help you to finance your dream home

We provide you with professional advice from the start to the end of your financing, and support you on the path to a self-determined life in your own four walls.
  • We take a comprehensive look at your personal situation and tailor the financing concept for you.
  • On the SwissFEX mortgage platform, we show you a wide range of offers from different providers. In this way, you can transparently compare several suitable offers in real time together with your advisor.
  • We will work out a tax-optimised amortisation model for you.
  • We ensure that you can continue to finance your home in the event of a misfortune with financial consequences, and thus continue to lead a self-determined life.
  • In contrast to regulatory guidelines which calculate the imputed rate of interest, we show you the actual monthly costs for your home.

Free consultation

Our experts at Swiss Life and Swiss Life Select would be happy to advise you on the savings options for your mortgage – at a location of your choice or online by video.

Further home & living topics

Home & living

Find out more

Searching & buying

Find out more

Saving & financing

Find out more

From our blog

Beautiful senior business couple is drinking tea, eating cookies, using a laptop and smiling while working in kitchen


Life in old age: Five tips for age-appropriate living after retirement

Do you want to relax and enjoy life after you retire – preferably in a self-determined manner in your own home? This is the ideal retirement for many Swiss. Heed the following tips and you’ll be able to retire in that way and enjoy your home worry-free.

Read more
Family is having fun outdoors


Turning your dream of owning a home into reality: How you can afford your own home

A small house in the country, lower costs, more self-determination: The dream of home ownership is shared by many Swiss families. And yet these dreams rarely become a reality. The main reason? A lack of equity. This is the conclusion of a recent study by Swiss Life. We provide some practical tips to help you make your dream of owning a home come true.

Read more
A happy couple is standing in the garden in front of a modern wooden house and talking. They’re dressed in casual clothes and are laughing. A dog is lying in the sand behind them, and in the background, you can see trees and hills. It is a sunny day and the picture conveys a relaxed, happy atmosphere.


Paying off a mortgage: what you need to know

Is owning your own home your idea of a self-determined life? If you are looking into financing, i.e. a mortgage, you will come across the term “amortisation” sooner or later. What exactly does amortisation mean, and what do you need to know about it? Swiss Life answers the most important questions.

Read more