Home ownership · Module 7

Enough for
your own home?

Two hurdles decide: enough equity – and affordability.

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The path to home ownership

Hurdle 1

The equity

Min. 20 %equity on the value the bank uses – lower-of principle: the lower of purchase price and lending value

Of which 10 %hard – not from the 2nd pillar

Max. 80 %financed by the bank – based on the lending value

Hurdle 2

~5 % ratetheoretical, not the market rate

≤ 33 %of gross income

After retirementaffordability must still hold

Two tiers

1st mortgageup to ~2/3 – no mandatory amortization

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2nd mortgagethe part above

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Repayin 15 years or by retirement

The second mortgage must be amortized.

Where does equity come from?

Savings + 3athe hard equity

Pension fundadvance withdrawal or pledge

Giftadvance inheritance from parents

Good to know

💡 First step: Check equity and affordability before you look for a property – so you know what's realistically financeable for you.

This video is no substitute for personal advice.
Baeriswyl Beratungen GmbH · Finance & pension planning · Fribourg