Learn how the mortgage calculator by moneyland.ch helps you decide whether to rent or buy a home:
- The “Rent or Buy” calculator by moneyland.ch makes it easy to find out whether renting or buying a home is the best-value option.
- An overview of all relevant Swiss base mortgage rates is available here.
- You can find more Swiss mortgage calculators here.
- Add data to the non-required optional information field to find more exact results. If you prefer not to add this optional information, moneyland.ch will base your calculation on relevant standard values using the basic data you entered.
- The calculator is designed for actual people (not for other entities) who plan to use the apartment or house in question as their primary residence.
- For the sake of simplicity, the calculator assumes that in the case of a home rental, money which would be spent on a down-payment and additional homeownership expenses will be invested and earn compound interest over the length of the equivalent mortgage term.
- The mortgage calculator assumes that a property’s collateral value, or what it can be sold for at market rates, matches or exceeds its purchase price. Also look at the lowest value principle.
- Down-payment: Money which you pay out of your own pocket. This may consist of bank account deposits, securities, inheritance advances or pillar 3a assets. If the property to be purchased will be your primary residence, pillar 2a assets can also be used. However, the pillar 2a assets used cannot add up to more than 10% of the property’s collateral value.
- Mortgage affordability is not accounted for by this calculator.
- Increases in property value over the length of the mortgage term can be accounted for in the calculation if you enter relevant optional information.
- Supplemental costs and maintenance costs attached to buying a home include non-value-add repairs and renovations, maintenance to the surrounding property, running expenses (like heating, electricity, water, caretakers and buildings insurance premiums), administrative costs and rates (some cantons levy an annual property tax).
- Loan-to-value-ratio: This portion of the property covered by a home loan normally cannot exceed 80% (or 90% in exceptional cases). The ratio for non-amortized mortgages cannot exceed 66%.
- Amortization: A mortgage is amortized (paid off) in equal payments at the end of each year during the amortization period. The calculation is based on direct amortization: Amortization payments made are deducted from the amount owed on an annual basis, which lowers the total mortgage debt.
- When calculating tax differences between a home purchase or rental, the calculator assumes that money used towards mortgage or rental payments above the down-payment amount is taxable. Relevant tax payments or deductions are calculated based on this assumption.
- Possible differences in wealth tax are not accounted for.
- Calculations are based on the assumption that no property tax (real estate tax) will be levied. Annual property taxes are levied in the cantons of Thurgau, Geneva, St. Gallen, Ticino, Valais and Jura. Some municipalities in the cantons of Bern, Fribourg, Grisons, Vaud and Appenzell Innerrhoden also charge a property tax. If property taxes apply to the home in question, just factor these into the sum you enter into the “Annual supplemental and maintenance costs” field and the optional “Tax-deductible property expenses” field.
- Costs are rounded to the nearest five centimes. Minor rounding differences may occur.
