Thread: Mortgages
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Old 21.04.2021, 13:53
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Re: Mortgages

You should have no problem approaching your home bank for initial consultation, where they explain how the system works. You can approach them with any property within your budget and they will do a simple quick assessment. I have good experience with Postfinance.

The rules which define how much you can borrow are simple ones:
1. You need to provide 20% of the price as a deposit. Of this 10% must be your liquid money (ona bank account, etc.). The remaining amount may come from a pension fund.
2. The yearly property costs must not exceed 33-35% of your gross income (your salary before tax, AHV, etc.). The property cost are calculated as a fictional amount 5% interest + 1% nebenkosten + 1% repayment (amortization)
3. Typically, only max 1% of the mortgage amount must be repaid per year. LTV must be reduced below 67% within 15 years and normally afterwards the loan is not repaid further (basically becomes interest only)

There are also many calculators only which calculate the max amount you can borrow, the repayments, etc for you, you can try or too, they all will give you the same results.