Helvetia Guide

Calculator · FINMA rules

Swiss mortgage affordability calculator.

Swiss banks don't lend against the actual mortgage rate. They stress-test every application at a 5% imputed interest rate, add 1% for maintenance, and require the second mortgage to amortize down to 65% LTV within 15 years. The total cost must stay under one-third of gross income.

Your numbers

Total purchase price including notary and land registry fees.

CHF 1'200'000

Hard equity from cash, securities, Pillar 3a, plus up to 10% of price from Pillar 2.

CHF 300'000

Before tax and social contributions. Add both partners if jointly applying.

CHF 220'000

Clean approval territory

Affordability ratio: 29.5%. Under the 33% bank ceiling.

You clear both the 20% equity rule and the 33.3% affordability rule. Banks should be able to write this without exceptions. The actual rate you'll pay is closer to 1.5% — your real monthly cost is roughly a third of what the stress test models.

Loan structure

Loan-to-value (LTV)75.0%
Total loan amountCHF 900'000
First mortgage (up to 65% LTV, no amortization)CHF 780'000
Second mortgage (65–80% LTV, must amortize)CHF 120'000
Annual amortization (over 15 years)CHF 8'000

FINMA stress test (what the bank actually checks)

Imputed interest (5% × loan)CHF 45'000
Maintenance (1% × property)CHF 12'000
Amortization (annual)CHF 8'000
Total imputed costCHF 65'000
As % of gross income29.5%
Bank rule (must be ≤ 33.3%)✓ Pass

What you'd actually pay (market rate)

Monthly cost at 1.5% (10-yr fixed, May 2026 indicative)CHF 1'792
Annual interest + amortizationCHF 21'500
Annual maintenance (1% × property)CHF 12'000

The bank's 5% stress test means even if you pass affordability today, your actual outgoings are roughly one-third of the imputed cost. That gap is your buffer against future rate rises.

Reverse calculation

With your current income and equity, you could afford a property of up to CHF 1'260'857under standard bank rules (33% ceiling). Beyond that, you'd need more income, more equity, or a sympathetic banker willing to push to FINMA's 38% ceiling.

How it works

The four rules every Swiss mortgage applicant has to clear.

20% minimum down payment

At least 20% of the purchase price must come from your own funds — and at least 10% of the price must be 'hard' equity (cash, securities, Pillar 3a). Pillar 2 (occupational pension) can cover the other 10%, but tapping it permanently reduces your retirement and can trigger blocked withdrawal periods.

33% affordability ceiling

Imputed interest (5% × loan) + maintenance (1% × property value) + amortization of the second mortgage (15 years to amortize from 80% LTV down to 65%) must not exceed one-third of gross household income. FINMA's absolute ceiling is 38%, but most banks stop at 33%.

The 5% imputed rate is a stress test

Banks don't care that current 10-year fixed rates are around 1.5%. They apply 5% because a 20–30 year mortgage will probably outlast multiple rate cycles. In the 1990s, Swiss mortgage rates exceeded 7%. The imputed rate exists so the loan still works if rates spike again.

Second-mortgage amortization

Loans up to 65% of the property value are the 'first mortgage' (no required amortization). The portion between 65% and 80% LTV is the 'second mortgage' and must be paid down to 65% LTV within 15 years. That annual amortization counts toward your 33% affordability budget.

2026 update

The Eigenmietwert vote and what it means for buyers

On 28 September 2025, Swiss voters approved the abolition of the imputed rental value (Eigenmietwert). Implementation is expected from the 2028 tax period. Once it takes effect:

  • Homeowners will no longer declare imputed rental income.
  • In exchange, deductions for mortgage interest and maintenance disappear.
  • First-time buyers retain a limited mortgage interest deduction (CHF 10,000/year, decreasing over 10 years).
  • Per the Wüest Partner March 2026 study, buying becomes cheaper than renting in 71% of municipalities (up from 57% today).

None of this changes how banks calculate affordability — the 5% imputed rate and 33% ceiling are FINMA-supervised banking rules, not tax rules. But it materially changes the after-tax cost of owning.

Sources