To optimize the affordability of your home financing, there are several strategies you can consider. First, you should conduct a thorough analysis of your financial situation and calculate the affordability ratio. This ratio indicates what percentage of your gross income will need to be allocated to housing costs.
The affordability ratio is calculated by dividing total housing costs by gross income. Housing costs include mortgage interest, amortization, as well as maintenance and ancillary costs. These should not exceed 33% of your gross income.
For example: With a gross income of CHF 120,000 and housing costs of CHF 36,000, the affordability ratio is 30%. In this case, the financing would be considered affordable.
If your affordability ratio exceeds 33%, there are several ways to improve it. One option is to increase your equity in order to reduce the amount of external financing required. For this purpose, you can use funds from your pillar 3a account or your pension fund.
Another possibility is to extend the term of your mortgage. This will lower your monthly payments, although total interest costs will increase over the life of the loan. A fixed-rate mortgage with a longer maturity also provides planning security in terms of interest expenses.
Choosing a more affordable mortgage model can also improve affordability. Compare different offers and use a mortgage calculator to find the financing option that best meets your needs. When evaluating options, consider not only interest rates but also terms such as notice periods and amortization requirements.
For sustainable affordability, long-term planning of your housing costs is essential. Take into account potential changes such as starting a family, retirement, or increases in interest rates. When purchasing real estate, ensure you have a sufficient financial buffer to be able to respond to unexpected events.
Start planning your financing early and seek advice from experts. Professional mortgage consulting will help you develop a financing strategy tailored to your needs and ensure long-term affordability. This way, you can pursue your dream of homeownership with confidence.
Call us or make an appointment online for a non-binding first conversation. We look forward to hearing from you.
