General Information

Equity Capital and Affordability

Adequate equity capital is the foundation of your dream home. Our financing experts will show you how best to use your capital.

What you need to know about equity capital and the affordability of your mortgage.

Equity Capital

Securely Financing Your Dream of Owning a Home

Certain financial conditions have to be met so you can finance your dream home securely. If you are building or purchasing your own home, you should usually contribute at least 20% of the purchase price or market value (the price that can be obtained from its sale) as equity.

Equity capital can be made up of savings and securities holdings, 2nd and 3rd pillar pension capital, life insurance and other sources, such as inheritance advancements.

You can obtain the remaining required capital – no more than 80% – as a mortgage. In order to determine your financing options, we calculate what you can afford. This is to ensure that the financing for your property is sustainable, even if interest rates rise.

The following rule of thumb applies to the calculation of affordability: For financing to be sound, mortgage costs (theoretical mortgage interest of 5%, repayment, maintenance, and ancillary costs) should make up no more than one third of your gross income.

Feel free to use our mortgage calculator to first calculate your own personal affordability.

Within the scope of a detailed consultation, our financing experts work with you to develop the best solution to meet your capital requirements.

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