The cost of a mortgage depends on several factors, such as the interest rate, the loan amount, the loan term, and the fees associated with the transaction.
What should be considered when calculating the cost of a mortgage?
1. The interest rate
The interest rate is one of the main factors determining the cost of a mortgage. The higher the interest rate, the higher the total cost of borrowing.
2. The amount of the loan
The higher the loan amount, the higher the periodic payments and the higher the total cost of borrowing.
3. Costs
The costs associated with the mortgage, such as notary fees, administration fees and insurance, can also affect the total cost of the loan—things to bear in mind.
Here are the key points to bear in mind when building up your own funds to buy a principal residence in Switzerland:
- You must have at least 20% of the purchase price in equity.
- A minimum of 10% must come from savings other than your 2nd pillar.
- Sources of equity can include your savings, your 2nd pillar, your 3rd pillar, a donation or a property you already own.