Financing home ownership

Do you dream of owning your own four walls? Make your dreams come true and prepare yourself in the best possible way. How feasible is financing your own home or owner-occupied flat? Which type of mortgage is best for you? We will guide you along the path to a tailored financing solution.

Everything you need to know about buying a home


To buy a home you need at least 20% of the purchase price (market value) as equity. You can obtain the remaining external funds, up to a maximum of 80%, in the form of a mortgage. The market value is the amount of money that can be generated from selling the property. Equity can take the form of savings or securities, retirement funds from the second and third pillars, life insurance or other sources, such as an advance against inheritance.

Ongoing costs

As well as the purchase price, ongoing costs also accrue. These are taken into consideration when calculating the overall financial situation. Mortgage costs, amortization, maintenance and utilities all count towards the annual ongoing costs of a property. Maintenance is calculated at 1% of the market value.


Mortgage debt must be reduced to two thirds of the value of your property (market value) by the time you retire at the latest. You have the choice between direct and indirect amortization.

  • Direct:
    You pay back the mortgage in regular instalments. This means the amount of the mortgage is reduced with every payment and the interest costs therefore also decrease. On the other hand, less debt interest can be deducted from your tax declaration.
  • Indirect:
    You pay the amortization amounts into a retirement planning solution: into a life insurance plan, the retirement funds or the retirement savings account 3a. The mortgage and debt interest constantly remain at the same rate. The amounts you pay in can be fully deducted from your taxable income.


To ensure that you can still afford your home in the long term with higher levels of interest, you must also fulfill the financial affordability criteria: a mortgage interest rate of 5% is currently used to calculate affordability. The total annual ongoing costs calculated as a result must not exceed 33% of your gross income.


Fixed-rate mortgages with terms of two to ten years

A fixed-rate mortgage guarantees you a consistent interest charge for the selected term. That makes it easier for you to budget for your living costs. The mortgage cannot be terminated during the fixed term. Early withdrawal in exchange for a fee is possible if the property is sold.

Variable mortgages

Interest rates for variable mortgages are determined by the market and may change with an advance notice of three months. The mortgage can be terminated at any time with a notice period of six months.

Market value

The market value is the current value of the property being financed and is determined on the basis of an estimate. Your residential property is well-maintained and of high quality.


The second mortgage must be amortised within 15 years or no later than the time of retirement. The amortisation may be made directly or indirectly through a providence policy. The policy is to be pledged.

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