Swiss mortgage calculation: rates and equity for buying in Geneva

To finance a property purchase in Geneva, you generally need to provide at least 20% of the price in equity, with the mortgage covering no more than 80% of the property's value. The lender then checks that annual costs, calculated at a notional rate of 5% rather than the rate actually paid, do not exceed one third of the household's gross income.

Actual rates are considerably lower: on 9 November 2026, the Banque Cantonale de Genève quoted 1.61% over 2 years, 1.86% over 5 years and 2.02% over 10 years for a main residence. This guide explains the calculation step by step, with Geneva examples.

Equity: 20% of the price, with rules on its origin

According to the financing brochure published by BCGE, standard practice is to finance no more than 80% of the lending value through a mortgage. The remaining 20% is equity. Lending value: the value the lender assigns to the property, which may differ from the price paid.

The share that cannot come from the 2nd pillar

At least 10% of the financing must come from sources other than the 2nd pillar: savings, securities, gifts, pillar 3a assets. The rest of the equity may come from occupational pension funds, by withdrawal or pledge. The sources available are detailed in our guide on equity for a property purchase in Switzerland.

Main residence only

The same brochure states that the 2nd pillar and pillar 3a may only be used for a main residence. For a second home or a rental property, the equity must therefore come entirely from other sources. The terms of the home ownership promotion scheme (EPL) and the use of the 3rd pillar for a property purchase are explained on dedicated pages.

Swiss mortgage calculation: the three-check method

An online calculator gives an initial estimate. The lender, however, carries out three successive checks.

1. The loan-to-value ratio. The mortgage does not exceed 80% of the lending value; equity covers at least 20%.
2. Notional costs. A financing guide published in February 2024 by a Swiss insurer notes that lenders often apply a notional rate of 5%, plus 1% of the property's value per year for maintenance and ancillary costs, as well as amortisation.
3. Affordability. These total costs should generally not exceed one third of the household's gross income.

The 5% rate is a safeguard: it checks that the household could still afford its home if rates rose. It explains why an application may be refused even when the actual monthly payment seems modest.

Worked example in Geneva

According to the Millenium Properties estimate of 12 November 2026, the median price in Geneva is CHF 15'300.– per m² for an apartment and CHF 14'200.– per m² for a villa. The two examples below apply the method described above, excluding amortisation.

Amortisation is added to these costs and therefore raises the income required. Its amount depends on how the lender splits the loan; your adviser includes it in the calculation as soon as the financing offer is known.

Mortgage rates in November 2026

The indicative rates published by BCGE on 9 November 2026, for a first-rank mortgage on a main residence, show the gap between the notional rate and the rate actually paid. Applied to the mortgage on the apartment in the example (CHF 1'224'000.–):

The bank states that these rates vary according to the property and the borrower's financial situation. They are benchmarks, not an offer.

Fixed rate or SARON

A fixed rate guarantees the interest cost for the whole term chosen. A SARON mortgage tracks the overnight interbank rate: according to the BCGE mortgage calculator, its cost is based on the SARON overnight rate plus the bank's margin. The results of such a calculator are indicative and non-binding; terms are confirmed at the time of application. The choice depends mainly on how much room the budget has to absorb a rise.

At maturity: renewal

At the end of a fixed-rate tranche, the loan is renewed, with the same lender or another. The affordability rules apply again; lower income or a revised lending value may change the terms.

Amortisation: what you actually repay

Amortisation is the gradual repayment of the capital borrowed. In Switzerland, the mortgage does not have to be repaid in full: the second mortgage, the upper tranche of the loan, is generally amortised within 15 years, according to the 2024 guide cited above. The threshold separating it from the first mortgage is set by the lender.

Amortisation may be direct, with the capital reducing each year, or indirect, through payments into a pledged pension account. The latter keeps the debt constant, which has tax implications to review with a tax adviser.

The cantonal loan when equity falls short

According to the Canton of Geneva's information sheet on the state loan, since November 2024 the canton may top up the equity of buyers who do not have the 20% usually required. For an eligible main residence:

• the buyer contributes at least 5% of the price;
• the cantonal loan covers no more than the missing 15%;
• its term is 10 years at most, with full repayment at maturity.

For the apartment in the example, this means CHF 76'500.– of personal contribution and up to CHF 229'500.– of cantonal loan, i.e. at least CHF 22'950.– of amortisation per year over 10 years. This cost is added to the affordability calculation; eligibility conditions should be checked with the canton.

Before signing: points to check

• The lender's agreement in principle, obtained before any firm offer.
• The lending value applied, which may be lower than the agreed price and so increase the equity required.
• The origin of funds, with the share outside the 2nd pillar documented.
• Actual costs: maintenance, co-ownership charges, amortisation.
• Price trends: according to the Millenium Properties estimate of 12 November 2026, Geneva prices rose by 2.8% over 12 months and 31.6% over 10 years, for apartments and villas alike.

The full process, from search to notarial deed, is described in our guide to buying your first property in Geneva. If your project involves selling an existing property, your adviser prepares an evidence-based valuation of your property, useful for calculating your equity. You then decide, with no obligation to sign a mandate.