Plenty of would-be buyers are surprised to learn that affordability in Switzerland is tested against a theoretical interest rate far higher than what you’ll actually pay. Here’s why that exists and how to plan around it.
The imputed rate
Lenders calculate your costs using an imputed rate of around 5%, plus maintenance and amortisation — and your total housing cost must stay under a third of your gross income. It’s a deliberately conservative buffer against rising rates.
“Pass the imputed-rate test and you’re not just approved — you’re genuinely insulated against the next rate cycle.”
The 20% down payment
At least 20% of the purchase price must come as equity, and at least half of that cannot come from your pension second pillar. Planning where that equity comes from is often the real bottleneck — not the monthly cost.
