Mortgage calculator

Mortgage calculator

With the mortgage calculator from Emprunts.ch, it is easy for you to determine the best offer according to your criteria. In the drop-down box below, you can calculate the annual cost of your mortgage, the minimal capital stock needed, the maximal price of the purchase as well as the minimal gross income. Indispensable information for your mortgage.

What are you calculating :
Mortgage criteria
Amortization duration
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Results

Amortization duration :

The amortization period represents the time it takes to repay the loan or part of it. In general, banks will ask you for 20% of their own funds and 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 term you choose.

Price :

Price at which you will buy your property (house or apartment). You do not have to add the real estate agency, notary and transfer fees to the land register. Indeed, Swiss banks and credit institutions do not normally finance these additional costs.

Capital stock :

Equity is the financial contribution you need to provide from the start to buy your property. The equity capital must represent at least 20% of the total price of the property. Ideally entirely from personal savings or a 3rd pillar. But at least 10% in cash, the remaining 10% can be invested thanks to your 2nd pillar. Some banks also accept for a construction project to contribute part of the equity capital in kind for example if you are a contractor in the building or construction you can do part of the work yourself and thus count it in your own funds.

Interest rate :

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. In concrete terms, even if the rate the bank proposes is for example 2%, it will use a higher rate generally around 5% to control your debt level. For your credit to be accepted, the annual costs of your loan must not exceed one-third of your gross income.

Gross income :

The remuneration before deduction of charges that you receive each year, usually your gross salary which can be supplemented by self-employment or other ancillary income. Your gross annual income must be 3 times the cost of your loan for the same period.

Mortgage :

Amount that the bank lends you for the purchase of your house or apartment. In Switzerland, we often talk about first and second mortgages, which correspond to two contracts (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 property which is not necessarily necessary to repay even if banks tend to require amortization around 40 to 50%. The mortgage(s) represent a maximum of 80% of the price of the property, the remaining 20% must come from own funds.

Annual maintenance :

Expenses you have to incur to maintain your property for work such as: changing the heating, redoing the roof, changing the windows etc... In 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.

Annual amortization :

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 or 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.

Total annual cost :

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), the maintenance expenses to keep your house or apartment in good condition.

What’s a mortgage ?

Whoever wishes to buy or to build the house of their dreams has to cover the expense for it, which is difficult most of the time. The mortgage is here to support your own capital for this important moment in life. It’s a long term loan made to finance real estate and used as a guarantee covering the risk of failed reimbursement. To obtain this kind of credit, a few minimal conditions are required. First of all, it is mandatory to have 20% of capital stock in order to be eligible. Capital stocks can come from your savings, from the second and third pillar, from donations or from other real estate goods. Secondly, the relation between the mortgage and the real market value of the house must not exceed 80%. Finally, the monthly interests must not be over the third of the salary. Note that the notary fees are additional, they vary depending on where the taker lives, and are not included in the offer.

Mortgage guides and news in Switzerland