How to calculate the maximum purchase price of your property

Determining your purchasing capacity

Buying a property starts with a fundamental step: defining how much you can realistically afford.

This estimation is based on several financial parameters and helps avoid:

• excessive debt,

• long‑term financial strain,

• or a project that does not match your situation.

Key elements to consider

To calculate your maximum purchase price, several factors need to be considered together.

Your income

Financial institutions take into account:

• your regular income,

• its stability over time,

• and your household’s overall situation.

These elements are used to assess your ability to sustain mortgage-related costs.

Your expenses

Your existing financial commitments are also part of the analysis:

• day‑to‑day expenses,

• existing loans,

• other financial obligations.

The goal is to evaluate your actual borrowing capacity.

Your equity

Your purchasing capacity is directly linked to your available equity.

In Switzerland, it is generally necessary to:

• provide a significant share of the property’s value as a personal contribution,

• mobilise sufficient financial resources to complete the financing.

The level of equity you can provide has a direct impact on how much you can borrow.

The affordability rule

A key principle applies when assessing your project:

These costs include:

• mortgage interest,

• potential amortisation,

• property maintenance costs.

This rule is designed to ensure the long-term sustainability of your financing.

The role of the mortgage

In most cases, financing relies in part on a mortgage loan.

The amount you can borrow depends on:

• the value of the property,

• your equity,

• and your ability to bear the associated financial costs.

This mechanism allows you to complement your personal contribution to reach the purchase price.

An estimate to refine

Calculating your maximum purchase price provides an initial estimate.

In practice, additional elements may influence your project:

• changes in interest rates,

• lending criteria specific to each institution,

• your personal and professional situation.

A more detailed analysis allows you to refine this estimate and adapt your strategy.

Taking a broader perspective

The maximum purchase price should not be considered in isolation.

It forms part of a broader reflection that includes:

• your overall financial situation,

• your life objectives,

• your investment horizon,

• and your long‑term financial strategy.