With the mortgage loan calculator from Emprunts.ch, it is easy to determine the best offer according to your criteria. Using the drop-down list below, you can calculate the annual cost of your mortgage, the minimal equity needed, the maximal price of the purchase as well as the minimal gross income. All of which are indispensable information for your mortgage.
Annual interest: CHF
Annual maintenance: CHF
Annual amortization: CHF
Total annual cost: CHF
The amortization period represents the time it takes to repay the loan or part of it. Usually, banks will ask you for 20% of shareholder equity as well as an additional depreciation of at least 15% on the total price of the property within a maximum period of 15 years. We have configured our simulator to calculate your mortgage with a 15% amortization of the price of the property depending on the duration you choose.
The price at which you will buy your property (house or apartment). You should not add the real estate agency fees, notary fees or the transfer to the land register fees. As it happens, Swiss banks and credit institutions do not usually finance these additional costs.
Equity is the financial contribution that you must provide from the start to buy your property. The equity must represent at least 20% of the total price of the property. Ideally, it should come entirely from a personal savings account or a 3rd pillar. At least 10% must be paid in cash, the remaining 10% can be invested through your 2nd pillar. Some banks also accept, for a construction project, to bring part of the equity in kind, for example if you are a building or construction contractor, you can do part of the work yourself and thus count it as part of your equity.
The amount that the bank charges you to lend you money. In the case of a home loan, since the loan will probably last several years and the rate may change, the bank will use an average reference rate to calculate your creditworthiness. For instance, even if the rate the bank proposes is for example 2%, it will still use a higher rate (generally around 5%) to monitor your debt level. In order for your credit to be accepted, the annual costs of your loan must not exceed one-third of your gross income.
The remuneration (before the deduction of charges) that you receive each year, usually your gross salary, which may also be topped up with a self-employed activity or any other ancillary income. Your gross annual income must be 3 times the cost of your loan on the same period.
The amount the bank lends you to buy your house or apartment. In Switzerland, we often talk about 1st and 2nd rank mortgages, which correspond to two contracts with different interest rates. The 2nd rank generally represents 15% of the price of the property, which must be repaid within 15 years, i.e. 1% per year. The 1st rank normally represents 65% of the price of the good, which it is not necessarily necessary to refund even if the banks tend to require an amortization around 40 to 50%. The mortgage(s) represent(s) a maximum of 80% of the price of the property, the remaining 20% must come from equity
The expenses you have to incur to maintain your property, such as: changing the heating, redoing the roof, changing the windows etc. For our simulator, we have chosen the standard rate of 1% per year, which represents a realistic value to keep your property in good condition and thus maintain the value of your house or apartment.
This is the amount you pay to the bank each year to reduce your debt. Depreciation does not include the interest you pay. Banks will ask you to amortize 15% of the purchase price within 15 years, i.e. 1% per year. They will also ask you to continue to amortize your debt for a while, usually up to 40 to 50% of the total price of the property.
This represents your total expenses for your property, i.e. the addition of all expenses: the interest you pay to the bank for your property, the amortization of your debt (the repayment of your mortgage), as well as the maintenance expenses to keep your house or apartment in good condition.