Swiss Mortgage Calculator

Estimate your Swiss mortgage according to FINMA and ASB guidelines. Calculates 1st rank (65%) and 2nd rank (15%) mortgages, compulsory 15-year 2nd rank amortization, and the 5% banking stress test affordability ratio.

How to use this calculator

1. Enter the property value in Swiss Francs (CHF).
2. Specify your total down payment and indicate how much comes from your 2nd Pillar / LPP pension (min 10% must be cash/hard equity).
3. Enter your gross annual household income to evaluate bank affordability (Tragbarkeit).
4. Set the actual market interest rate quoted by your Swiss bank or broker.
5. Read your 1st and 2nd rank loan breakdown, annual amortization schedule, and stress test result.

Formula & method

Swiss FINMA Mortgage Calculation Standard

Loan = Price - Equity; 1st Rank = Min(Loan, 0.65 x Price); 2nd Rank = Max(0, Loan - 1st Rank); Theoretical Cost = (Loan x 5%) + (Price x 1%) + (2nd Rank / 15)

Price = property value, Equity = down payment, Tragbarkeit = Theoretical Cost / Gross Income <= 33%.

Example

1,000,000 CHF home with 200,000 CHF equity -> Loan = 800,000 CHF. 1st Rank = 650,000 CHF, 2nd Rank = 150,000 CHF. 2nd rank annual amortization = 10,000 CHF.

Key insights

• Swiss banks enforce a strict 20% minimum down payment, with at least 10% coming from non-2nd pillar hard equity (cash, 3rd pillar, savings).
• The 1st rank mortgage (up to 65% of property value) does not require mandatory amortization and can remain as a perpetual loan.
• The 2nd rank mortgage (up to 15% of property value) must be fully amortized within 15 years or by age 65.
• Affordability (Tragbarkeit) is calculated using a conservative 5.0% theoretical interest rate + 1.0% maintenance charges + 2nd rank amortization; total cost must stay below 33% of gross income.

How to interpret your result

Tragbarkeit (Affordability Ratio)

If the theoretical cost ratio is below 33%, your mortgage application meets standard Swiss banking standards. Between 30% and 33% is acceptable but close to lender limits.

Hard Equity Requirement

At least half of your 20% down payment (10% of total property value) must come from cash or 3rd pillar savings rather than 2nd pillar (BVG/LPP) pension pledge/withdrawal.

Frequently asked questions

What is the difference between 1st and 2nd rank mortgages in Switzerland?

The 1st rank covers up to 65% of the property value and does not have to be paid off (amortized). The 2nd rank covers the remaining mortgage (up to 15%) and must be amortized within 15 years or by retirement age.

Why do Swiss banks test affordability at 5% when market rates are lower?

FINMA guidelines require Swiss banks to apply a theoretical stress test rate of ~5% to ensure borrowers remain financially resilient if interest rates rise.

Related calculators

• Swiss Mortgage Affordability Calculator (Tragbarkeit) — Check if your household income meets the Swiss 33% stress test affordability requirement.
• Swiss Rent vs. Buy Calculator — Compare renting vs buying real estate in Switzerland including mortgage, equity growth, and index investing.

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