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Step 3: What's the Best Way to Finance My New Home?

It's not only your dream home that you choose according to your taste, you can also adjust the financing to suit your particular circumstances. You will always find the right financial solution at Credit Suisse.

Financing

Houses and land are generally regarded as good retainers of value. Nonetheless, there are
a number of factors that can affect the value of real estate, such as emissions and traffic. Therefore, banks will generally grant mortgage loans of up to 80% of the current market value. These are the important things to note for your financing with Credit Suisse:

  • You must contribute your own equity amounting to 20% of the purchase price/current market value
  • Your equity can be in the form of savings or securities, second or third pillar pension capital, insurance policies with a surrender value, loans from relatives and acquaintances, or anticipatory successions.
  • If your application is approved, you will obtain 80% to 95% of the purchase price/current market value in the form of a Credit Suisse mortgage.
  • A mortgage loan is divided into a first mortgage (66% of the market value) and second mortgage (remaining amount).
  • The second mortgage bears a higher interest rate and is repaid in annual amortizations until the homeowner reaches the age of 65.
  • The interest varies according to market conditions and the chosen mortgage model. You are free to choose and combine the different types of mortgage.
  • Use our Mortgage Calculator to help with your mortgage calculation.

Sample calculation, assuming 20% cash down payment (in CHF)

Purchase price/market value

650000

Cash down payment (20%)

130000

1st mortage (66%)

429000

2nd mortage (14%)

91000

Financing with 2nd and 3rd Pillar Pension Capital

This type of financing is subject to specific regulations. Therefore, when 2nd and 3rd pillar pensions are pledged, equity of at least 5% must be introduced in the form of cash. We have compiled the most important points for you: Notes regarding the use of pension capital for financing.

Affordability

Annual costs comprise interest, repayments and ancillary costs. When added together, they should not exceed one-third of the gross income. The following example is based on annual income of CHF 113,000. You can easily create your own calculation using our Use our Mortgage Calculator.

Interest costs* (in CHF)

1st mortage, 5% p.a.

21450

2nd mortage, 5% p.a.

4550

Annual repayment (2nd mortage, calculated over 20 years)

4550

Annual ancillary costs (1% of the purchase price/market value)

6500

Total cost per year

37050

Total cost per month

3088

* imputed (average long-term mortage interest rate)

Financial Solutions from Credit Suisse: Individually Tailored to You

You will be sure to find your optimal financing model from among the various mortgage types. Our Credit Suisse advisors will be delighted to assist you in choosing the type that best suits your current situation and future plans.

We Support You on the Road to Home Ownership

Your advisor can make a definitive financing proposal as soon as you have provided all of the necessary documents in full. You can find a list of all the required documents in the mortgage application checklist PDF (57KB) and in our mortgage loan application form PDF (241KB).
Our brochure Home and Living - Our Offering to Help Turn Your Dream of a New Home into Reality PDF (966KB) will provide you with an initial overview of the most important steps. We recommend, in any case, that you take the opportunity to have
a no-obligation personal consultation with our specialists.

So now you know whether you can afford your dream home and you are much closer to the day of the big move.  

  Step 4: How Do I Buy a Home of My Own?

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