What do I need to consider when it comes to affordability?

Found your dream property and want to check your financing options? Then benefit from the expertise of our financing partner UBS.

How much equity is necessary?

It is possible to cover up to 80% of the property value with a mortgage. This means you need 20% of equity. The following principle applies: At least 10 percent of the financing must come from “hard” equity; the other 10 percent can be financed by making an advance withdrawal from your pension fund. It should be noted that with this model (“only” 10% of hard equity), the mortgage amounts to 90% of the purchase price.

What does affordability mean?

When granting a mortgage, the bank also pays attention to whether you can afford the property in the long term. This is determined by comparing the cost of your home to your gross income. The golden rule of financing is that the running costs of home ownership should not exceed one-third of gross income.

What does UBS recommend if it is not quite enough?

In a non-binding consultation, UBS will analyze different elements with you such as the detailed calculation of affordability or whether you have exhausted all your options for raising equity capital. A consultation is worthwhile in any case.

Disclaimer: By clicking on the button below, you acknowledge that SMG Swiss Marketplace Group Ltd may receive a payment each time a mortgage is taken out with UBS. The products offered on the UBS website are exclusively intended for and available to persons resident in Switzerland.