What you should know about the “minimum income” mortgage calculator by moneyland.ch:
- The «minimum income» mortgage calculator by moneyland.ch makes it easy to find out how high your income needs to be in order to be approved for a specific mortgage.
- An overview of all relevant Swiss benchmark rates for mortgages is available here.
- Find the comprehensive mortgage calculator here. You can find more Swiss mortgage calculators here.
- This mortgage calculator assumes that the collateral value corresponds to the property’s purchase price, and that the market value of the property is at least as high as its purchase price. Also look at: lowest value principle.
- Down payment: This is the part of the money which you pay out of your own pocket. Your down payment may include bank account assets, securities, inheritance advances or pillar 3a retirement assets. If the property in question will be your primary residence, you may also use pillar 2a retirement assets. However, the portion of your down payment which is not made up of pillar 2a assets must amount to at least 10% of the property’s collateral value.
- Affordability: Your expense-to-income ratio normally cannot be higher than 33%. Depending on the lender, expense-to-income requirements may vary, but not in a major way. You can find out more about affordability here.
- Loan-to-value ratio: Typically, a home loan cannot cover more than 80% of the cost of a property.
- Amortization: The calculator assumes an amortization period of 15 years. If the loan-to-value ratio is lower than 66%, the calculation will not include an amortization period.
- Imputed interest rate: Most lenders use an assumed interest rate of 5%. This imputed mortgage rate applies to the entire mortgage, including the second mortgage where applicable.
- Small variations caused by rounding may occur.
