Before you start viewing properties, it is worth knowing whether the project can be financed. Each institution applies its own policy, but a few criteria come up almost everywhere in Switzerland.<\/p>\n
As a rule, you need to contribute at least 20% of the purchase price<\/strong>. At least part of it (often 10% of the price) must come from \u201chard\u201d equity in the strict sense, i.e. not from 2nd-pillar assets. The balance can come from the 3rd pillar or, under certain conditions, the 2nd pillar.<\/p>\n The bank calculates theoretical<\/strong> costs using a long-term notional interest rate (often 5%), amortisation and maintenance costs (around 1% of the property value per year). These costs should generally not exceed one third of the household\u2019s gross income<\/strong>.<\/p>\n The part of the mortgage exceeding two thirds of the property value must in principle be amortised, most often within 15 years.<\/p>\n Term, structure, early-repayment options, use of pension assets and taxation matter as much as the advertised rate.<\/p>\nAffordability<\/h2>\n
Amortisation<\/h2>\n
Do not look only at the rate<\/h2>\n