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Key points at a glance
- Individual offer: Whether fixed or flexible interest rate – we offer you the right mortgage.
- Attractive interest terms: With us, you benefit from competitive and attractive interest rates.
- Sustainability discount: We support your commitment to sustainable living – for example, if you invest in a photovoltaic system.
A mortgage is a loan to finance your own home: With a mortgage from AXA, you receive tailor-made conditions that meet your individual needs.
If you want to take out a mortgage, you must understand its structure, ensure affordability, and choose a type of mortgage. We’ll show you what’s important.
Amortization: How to repay your mortgage
Amortization is the repayment of your mortgage in installments. These can be made either directly or indirectly – depending on what better suits you and your financial situation.
Direct repayment
Direct repayment is the annual repayment or amortization of your mortgage. However, as your mortgage debt decreases, your tax liability increases again.
Indirect repayment
Indirect repayment is made through your retirement provision. You don’t repay your mortgage, but rather invest regularly in a retirement provision policy – for example, in a pillar 3 solution with AXA. When the mortgage comes to an end, the mortgage debts are repaid with this capital. How you benefit: With this type of repayment, you benefit from tax advantages over the entire term.
Structuring a mortgage
A basic distinction is made between the first and second mortgage:
The first mortgage corresponds to 66.67% of the purchase price of your home. The second mortgage protects the rest of the external capital. This is normally 13.33%. The second mortgage must be repaid in full within 15 years or at the latest by the time you reach the age of 65 (60 with AXA).
Ensure affordability of your mortgage
You finance 20% of the purchase price of your property from your own funds and the remaining 80% from borrowed capital.
Note the following basic rules:
- The higher the percentage you pay with your own funds, the lower your interest payments will be.
- When buying a house or purchasing other residential property, your current expenses should not exceed a third of your annual gross income. This includes interest on the first and second mortgages, ancillary costs, and repayment for the second mortgage.
For what types of properties does AXA grant mortgages?
AXA grants mortgages for owner-occupied residential property (main residences). The minimum mortgage amount is CHF 400,000.
Interest rates: The costs of a mortgage from AXA
Our sustainability discount for climate-friendly real estate
AXA supports your efforts to create a more sustainable future: Whether you are replacing your heating system with renewable energy, installing more efficient thermal insulation or a photovoltaic system, or making other CO₂-reducing investments – we support your commitment with attractive discounts.
- 0.4% p.a. discount for fixed-rate mortgages (up to CHF 250,000 for a maximum of five years)
- 0.2% p.a. discount for money-market mortgages (up to CHF 250,000 for three years)
Already own a home with an energy-optimized building envelope and renewable energies for heat generation and want to transfer your financing to us? We will be pleased to offer you the same sustainability discount.
Frequently asked questions about mortgages
What are the advantages of taking out a mortgage from AXA?
You benefit from the following advantages when you take out a mortgage from AXA:
- Simple, personal processing: Straightforward and personal support from AXA’s experts.
- Attractive interest rates: With us, you benefit from competitive and attractive interest rates.
- Support throughout the entire process, even after the contract has been signed: Continuous and free support throughout the entire process, even after conclusion.
- Sustainability discount for climate-friendly real estate: Secure attractive discounts if you are renovating your home to make it more energy efficient or if you already own a home that has been renovated in this way.
- Comprehensive advice: We provide expert advice on topics such as home financing, pensions, and insurance.
How much of my own funds do I need to invest?
You need at least 20% equity. This includes savings, pension assets from pillar 3, and inheritance advances. Pension fund assets and repayable loans do not count.
The higher your equity ratio, the lower your mortgage and therefore your interest burden.
How do I repay my mortgage?
You can repay your mortgage in two ways:
- The first mortgage generally corresponds to 66.67% of the purchase price of your home. For tax reasons, it can make a lot of sense to not start repaying this mortgage straight away.
- The second mortgage must be amortized, usually within 15 years or at the latest by the age of 60.
What’s the difference between direct and indirect amortization?
The main difference between direct and indirect amortization of a mortgage lies in the way in which the debt is repaid. With direct amortization, the mortgage is reduced directly at regular intervals, which reduces the debt and the interest burden. With indirect amortization, on the other hand, the repayments are paid into a tied pillar 3a account (a tax-privileged pension account). The mortgage remains unchanged, but the funds saved can be used for repayment at the end. This leads to tax advantages, as the mortgage and interest remain constant.
What happens to the mortgage if I sell the property before amortization?
If you wish to sell the property before the agreed term, you will incur additional costs. How high the costs for terminating a current mortgage are depends on the agreed interest rate, the remaining term of the mortgage, and the current interest rate level.
