What you should know about the mortgage calculator from moneyland.ch:
- The mortgage calculator from moneyland.ch makes it easy to find the costs, amortization, affordability and loan-to-value ratio of the mortgage on your home.
- An overview of all relevant Swiss benchmark rates for mortgages is available 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. In some (exceptional) cases, the loan-to-value ratio can be as high as 90%. Without an amortization schedule, no more than 66% of a property’s value can be covered by a mortgage.
- Amortization: Mortgage debt must be reduced to no more than 66% within 15 years of mortgaging a property. That means that a possible second mortgage must be amortized (paid off) in full. Homeowners above 50 years of age will normally have only limited amortization options to choose from. For those over 65-years-old, only the “no amortization” option is available.
- Every amortization payment you make reduces your mortgage debt, and therefore your interest payments. The moneyland.ch calculation is based on the interest rate on your entire home loan – that is, the mortgage debt you owe at the start of your mortgage term.
- 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.
- Amounts entered and costs shown are rounded to the nearest five centimes. Small variations caused by rounding may occur.