Free mortgage
simulator

How to use our mortgage simulator

Our mortgage simulator lets you estimate in seconds whether your property project is financially feasible. Whether you are considering buying an apartment in Geneva, a house in the canton of Vaud, or renewing your existing mortgage, this tool gives you a reliable first assessment.

The simulator works in three simple steps:

1. Quick estimate: Enter the property price, your available equity and your household's gross annual income. The result displays instantly.
2. Refinement: Specify your project type (purchase, renewal, investment), your canton of residence, your property type and your professional status. This information refines the calculation.
3. Personalised analysis: Leave your contact details to receive a free detailed analysis of your project from a mortgage expert.

The Swiss banking calculation method

Banks and credit institutions in Switzerland apply a standardised method to evaluate an applicant's affordability. This method, known as the affordability calculation (Tragbarkeitsberechnung), rests on three pillars:

1. The theoretical rate of 5%

Rather than using the actual interest rate of your mortgage (currently between 1% and 2%), banks calculate your charges using a theoretical rate of 5%. This prudential rate ensures that you could continue to afford your mortgage even in the event of a sharp rise in interest rates, as has happened historically in Switzerland (rates exceeded 7% in the 1990s).

2. Maintenance costs (1%)

Banks add 1% of the property value per year for maintenance costs and ancillary charges. For a property valued at CHF 1,000,000, this amounts to CHF 10,000 per year, or approximately CHF 833 per month. This provision covers repairs, renovations, condominium charges and insurance.

3. 2nd rank amortisation

If your mortgage exceeds 67% of the property value (which is the case when you contribute exactly 20% equity), the portion above 67% constitutes the 2nd mortgage rank. This 2nd rank must be amortised (repaid) within 15 years or before retirement age. For a CHF 1,000,000 property with 20% equity, the 2nd rank amounts to CHF 130,000 (mortgage of 800,000 minus 670,000).

The one-third rule: the 33% threshold

All of these theoretical charges must not exceed one third (33%) of your household's gross annual income. This is the fundamental rule of affordability in Switzerland. If the ratio exceeds 33%, the bank will generally consider the financing unsustainable.

Table: minimum gross annual income required for different purchase prices, with 20% equity. Calculation based on a theoretical rate of 5%, 1% maintenance and 2nd rank amortisation over 15 years.

Equity: the essential rules

In Switzerland, the minimum equity contribution is 20% of the purchase price (or of the lending value if it is lower than the purchase price). Of this 20%, at least 10% must come from hard equity:

• Personal savings (bank accounts, investments)
• Pillar 3a and 3b
• Gifts or advance inheritance
• Securities (shares, bonds, investment funds)

The remaining 10% can come from pillar 2 (pension fund / LPP), either as an early withdrawal or as a pledge. Please note: a pillar 2 withdrawal reduces your pension benefits and is subject to a capital withdrawal tax.

Beyond the simulator: the support of a broker

The simulator gives you an initial indication, but every case is unique. A mortgage broker like Vision Hypotheques adds significant value:

• Comparison of 40+ lenders: cantonal banks, major banks, private banks, insurance companies and pension funds
• Rate negotiation: thanks to our volume of cases, we obtain preferential conditions
• Tax optimisation: choice between direct and indirect amortisation, interest deductions, pension strategy
• Full support: from the first simulation to signing at the notary

Differences between online simulators

Our simulator stands out by using the exact official banking method. Some online simulators use simplified formulas that do not account for 2nd rank amortisation or use a different theoretical rate. Our tool applies the same criteria used by banks when evaluating your file:

• Theoretical rate of 5% (not the actual rate)
• Maintenance costs of 1% of the property value
• Mandatory amortisation of the 2nd rank (above 67% LTV) over 15 years
• Affordability threshold at 33% of gross income

For an even more precise estimate, we invite you to also use our complementary tools: the affordability calculator and the monthly payment calculator.