Swiss Mortgage Example

In case you fancy buying a 1,000,000 CHF residential property in beautiful Switzerland:

Purchase price: 1,000,000

20% Deposit: 200,000

First mortgage 66% of purchase price: 660,000 - renegotiate every 10 (max) years

Second mortgage 14% of purchase price: 140,000 - must be paid off in (max) 24 years

5% * First Mortgage amount has to be less than 30% of your gross income

Simple!