How much can I borrow to buy property in Switzerland?
Calculate your mortgage affordability in seconds, based on the real rules of Swiss banks.
Your borrowing capacity
CHF
CHF
Advanced settings
Maximum purchase budget
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Property price (max)
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Mortgage (max 80 %)
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Equity required (min 20 %)
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Estimated purchase costs (—)
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Total cash required
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Theoretical annual costs
Theoretical interest (5 %)
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Maintenance (1 %)
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Amortisation
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Total costs / income
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💰 Estimated monthly costs
Mortgage interest (2 %)
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Amortisation
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Maintenance & charges (1 %)
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Total monthly cost
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Estimate at the actual rate shown (not the theoretical 5 % rate used for affordability). Reflects your approximate real monthly cost.
⚠️ Indicative estimate based on the standard rules of the Swiss mortgage market. Each bank applies its own criteria. This calculation is not a financing offer.
In Switzerland, buying property is based on two key rules that all banks apply. Our calculator respects both: your maximum budget equals whichever is the more restrictive.
1. The equity rule (20 %)
You must finance at least 20 % of the purchase price with your own funds. The bank therefore never lends more than 80 % of the property value. Of that 20 %:
At least 10 % of the price must be «hard» equity: savings, pillar 3a, gift or inheritance.
The remaining 10 % may come from your pillar 2 (occupational pension), via withdrawal or pledge.
2. The affordability rule (33 %)
Your theoretical annual costs must not exceed one third (33 %) of your gross income. These costs are calculated conservatively:
Theoretical interest: 5 % of the mortgage (not the much lower real rate), to ensure you could cope with a rate rise.
Maintenance costs: 1 % of the property value per year.
Amortisation: the portion of the mortgage above 65 % of the property value (second rank) must be repaid within 15 years.
Example: for a property at CHF 1,000,000 with CHF 200,000 of equity, the mortgage is CHF 800,000 — giving theoretical costs of about CHF 60,000/year and a required gross income of around CHF 180,000.
Frequently asked questions
Why a theoretical rate of 5 % when real rates are lower?
Banks want to ensure you could keep paying even if rates rose sharply. This theoretical rate is only used to assess your capacity; you will actually pay the much lower market rate.
Can I use my entire pillar 2 as equity?
No. Pillar 2 can only cover half of the required 20 %, i.e. 10 % of the price. The other 10 % must be «hard» equity.
Is amortisation always mandatory?
Only the portion of the mortgage above 65 % of the property value (second rank) must be amortised, usually over 15 years or until retirement.
Is this calculation valid in all cantons?
The financing rules (80 % / 33 % / 5 % rate) are Switzerland-wide standards. However, additional fees (notary, transfer tax) vary by canton and are not included here.
Detailed calculation method
A Swiss bank does not look at one figure but at two ceilings, and the tighter one sets your budget: affordability and equity. This calculator tests both and tells you which is holding you back.
Ceiling 1 — theoretical costs ≤ 33 % of gross income
costs = mortgage × 5 % + 1 % of price (maintenance) + amortisation amortisation = (mortgage − 65 % of price) ÷ 15 years
The 5 % theoretical rate is not the rate you will pay: it is a stress test, checking that your budget would hold after a lasting rise in rates. Maintenance is set at a flat 1 % of value per year (renovations, condominium charges, insurance). Amortisation is mandatory only until the debt is down to 65 % of value, within 15 years at most.
Ceiling 2 — 20 % equity, plus purchase costs in cash
maximum price = equity ÷ (0.20 + the canton's cost rate)
Purchase costs (transfer tax, notary, land registry) are not part of the property value, so the bank does not finance them. They are paid on top of the 20 %, out of available savings. That is why the canton shifts your budget: at 4.1 % of costs, every CHF 100,000 of price requires CHF 4,100 of extra cash. The canton-by-canton detail is in our article on notary fees in Switzerland.
The calculator iterates to find the highest price satisfying both ceilings, then separately shows an estimate of real monthly costs at the market rate you enter (2 % by default): that is the amount leaving your account each month, not the theoretical costs.
Limitations and accuracy
The result is a transparent estimate based on standard Swiss market rules, not a financing approval. A bank will also examine the stability of your income, existing loans, your family situation — and above all its own valuation of the property: if it values the home below the asking price, the 80 % applies to its valuation.
Three common gaps with your adviser's figure: some institutions use a 4.5 % or 5.5 % theoretical rate, a 35 % affordability ratio, or 0.7 % maintenance for a new build; variable income (bonuses, commissions) is often weighted down or ignored; and equity from the second pillar is capped at half of the required 20 %. The first three parameters can be edited above to reproduce your bank's assumptions exactly.