Affordability calculator

The MoneyPark affordability calculator indicates whether you can afford a certain property. The affordability ratio shows how much of your gross monthly income will have to be used to cover your monthly mortgage costs. Please note: The results are only indications. Our advisors will gladly help you find the best mortgage for your needs. Request advice now!
Property value
The value of the property. This value may be different from the purchase price.
The amount of available own funds. Own funds reduce the loan-to-value ratio. Own funds include cash, free assets, life insurance policies as well as assets from the second and third pillar.
Please enter your gross annual income.
Determines the duration of the amortization.

More information on property value and own funds

Property value means the purchase price of the property excluding taxes and fees. Own funds include savings, securities and heritages you want to use for the financing of your mortgage. Your own funds should be at least equal to 20% of the property value. Up to 50% of your own funds can be taken from your pension fund assets.
of your income will be used to cover your mortgage payments.
Affordability limit
Most providers accept an affordability of up to 33%. The affordability indicates what percentage of your gross income you have to pay for the mortgage-related costs. A lower affordability means more security for the bank and is expressed in better interest rates.

Your affordability

Total monthly payments
Monthly interest payments
For this calculation we use an imputed interest rate of 5% since this is in line with the long-term average. You can find the historic mortgage rates in our rate tool.
Maintenance and additional costs
In our calculation we assume maintenance and additional costs in the amount of 1% of the property value per year. These costs may arise from possible renovations and repairs.
Amortization costs
If the amount of the mortgage is higher than 2/3rd of the property value (second mortgage), we amortize the exceeding amount over 15 years.

Please select the branch where you would like to receive advice.
Our experienced real estate agents will be happy to advise you competently when selling.

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What is affordability?

The calculation of affordability is used by the lending financial institution as security before granting a mortgage. Affordability is expressed as a percentage and provides information on the ratio of current financing costs to the gross income of the mortgage borrower. The resulting costs should not exceed one third of the gross income, otherwise the lender will be unlikely to approve the financing project. There are, however, providers who will accept higher affordability values in individual cases. In addition, very good affordability values can result in a discount on the mortgage rates. Financing costs include interest and amortization payments as well as maintenance costs.

To calculate the interest costs, the bank uses an imputed interest rate of usually 5%. This interest rate is intentionally set at a high level to ensure that the customer is able to meet his or her payment obligations even if interest rates should rise. The amortization period is usually set to 15 years for the calculation, but there are also providers who use a different duration for the calculation. Side costs include expenses for water and electricity, insurance costs and possible repair work expenses - these costs are combined in the affordability calculation and are measured at one percent of the value of the property.

Banks consider a number of different factors when calculating the income of a potential mortgage borrower. Bonus payments, for example, i.e. income that is not guaranteed in the long-term, may be considered in a different way depending on the provider. Another factor is the professional situation of the borrower: how good are the chances of finding a new job with an equivalent salary if the job is lost? In the case of young couples, it is also the case that banks "imply" a desire to have children, which would temporarily reduce the total income of the couple. With this theoretical assumption, it often does not matter whether a child is actually planned.

Our affordability calculator gives you an initial idea about the affordability of your dream home, but in-person advice is recommended for more accurate values. This is because if you do not meet the affordability requirements of a bank, the chances are good that you will with another financial institution, which is why a detailed comparison of different providers should be made. Our experienced advisors know the mortgage market well and have a full understanding of the requirements of individual providers and are ideally placed to find the best solution for your individual situation. We compare over 100 online and offline providers and define the optimal financing strategy for your project. If you would like to find the optimal mortgage with independent, in-person advice, we look forward to receiving your financing request. Request advice now!

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