Can you afford your dream home over the long term? Use our calculator and find out in just a few clicks. You can also discover which factors influence the affordability of a property. We would also be happy to advise you in person.
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.
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FAQs about affordability
Affordability refers to the financial burden of homeownership. A mortgage is considered affordable if annual costs (interest, amortisation, additional expenses) do not exceed 33 % of your gross income. For a precise assessment, we offer personal advice.
The calculation is based on a notional interest rate (usually 5 %), 1 % additional costs and 1–2 % amortisation. These values show whether your financing remains sustainable even if rates rise. You can find current rates here.
The calculator evaluates your income, equity and property price to determine what you can afford. For a detailed assessment, we offer a personal consultation.
In Switzerland, you need at least 20 % equity, of which at least 10 % must come from liquid assets (excluding pension funds). Get personal advice now.
Equity includes savings, securities, pension assets (3a and 2nd pillar), gifts or inheritance advances.
