Mortgages: Financing your own home

If your residential property is within reach and you only need the right partner for your financing, then AXA is the right choice for you. For your mortgage, we will offer you attractive interest terms that will enable you to not only realize your personal dream of owning your own home, but also at conditions that are feasible for the long term – even if something does not go to plan.

Calculate your personal interest payment, get advice from our experts, and choose a mortgage that meets your needs.

To the mortgage calculator

Everything you need to know about mortgages

A mortgage is a long-term mortgage loan. If you want to take out a mortgage, you must understand its structure, ensure affordability, and choose a type of mortgage. We will explain everything you need to know.

Structuring a 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%. It must be repaid in full within 15 years or at the latest by the time you reach age 65 (60 with AXA).

Affordability

The general rule is: You finance 20% of the purchase price of your property from your own funds and the remaining 80% from borrowed capital. The higher the percentage you pay with your own funds, the lower your interest payments will be.

Moreover, the running costs of your house or apartment shouldn't amount to more than one-third of your gross annual income. This includes interest on the first and second mortgages, the ancillary costs, and the repayments for the second mortgage.

Types of mortgages

Regardless of whether you are buying an apartment, a house, or replacing an existing mortgage: With our two mortgage solutions, you are sure to find the right financing for your home. Do you prefer reliability or would you like to stay flexible? With AXA – as with a bank – you have the choice.

1. Fixed-rate mortgage

You prefer to know your fixed interest costs in advance and want to know exactly what interest will be due? Then the fixed-rate mortgage is the right solution for you. With this solution, you can set both the term and the interest rate, so you always pay the same mortgage interest for the agreed period. However, you are contractually obligated and cannot benefit from decreases in interest rates.

The minimum amount of a fixed-rate mortgage is CHF 100,000.

2. Variable-rate mortgage

With this option, the interest rate changes according to the situation on the money markets and capital markets. You remain flexible because you don’t have to set a fixed interest rate or fixed term. If you expect interest rates to decrease and are not concerned about the risk of rising rates, then you should choose a variable-rate mortgage. This solution is also suitable for homeowners who would like to sell their home in the foreseeable future and for those who wish to keep their financial flexibility.

Download

Mortgage application [ 177KB]

Interest rates: The costs of a mortgage from AXA

Our interest rates are based on the fluctuations on the Swiss money market and capital markets. Your interest costs will be fixed when you conclude the mortgage agreement. Your creditworthiness and the quality of coverage also play a role.

At AXA, you can conveniently make interest payments on a quarterly basis: On March 31, June 30, September 30, and December 31.

The minimum mortgage amount is CHF 400,000. Our interest and interest rates are aimed at ensuring first-class client creditworthiness and a low borrowing amount for the property. Depending on the type of property, its location, and the time of payout, these interest rates may vary.

With AXA, you have the opportunity to compare various mortgage providers. To do so, we work with our partner Valuu. Thanks to Valuu, we can provide our clients with a solution that best suits their needs and offers the most attractive interest rates.

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 home. You pay off your mortgage. However, as your mortgage debt decreases, your tax liability increases again.

Indirect repayment

Indirect repayment is processed 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.

Get personal advice

Advice in German at +41 58 215 44 01
Advice in Italian at +41 58 215 33 15
Advice in French at +41 58 215 34 01

Financing example

Are you unsure whether you can afford your mortgage and cover the costs of your dream home in the long term? With our example, you can estimate your exact financial leeway and see whether you can afford the property.

Costs

Purchase price: 900,000
Own funds (at least 20% of purchase price) 180,000
First mortgage (borrowed capital) 600,000
Second mortgage (borrowed capital) 120,000
Household income: 160,000

Interest rates

Imputed interest rate* for calculating affordability of the first mortgage: 4.5%
Imputed interest rate* for calculating affordability of the second mortgage: 5%
Realistic interest rate for calculating costs: 1.75%
Annual ancillary costs/maintenance: 1.0%

Affordability calculation

To find out whether you can afford your own home in the long term, we calculate the so-called affordability of the property before granting any mortgage. In this way, we as the lender can ensure that you as the borrower can cover the ongoing financing costs – even in the long term. Much in the same way as a bank does. The total cost of the property shouldn't be more than one-third of your gross household income.

Imputed costs
First mortgage (CHF 600,000): 4.5% imputed interest rate* CHF 27'000.–
Second mortgage (CHF 120,000): 5% imputed interest rate* CHF 6'000.–
Repayment of the second mortgage** CHF 8'000.–
Ancillary costs / maintenance (1% of the purchase price)*** CHF 9'000.–
Total per year CHF 50'000.–
Total per month CHF 4'167.–
Share of household income: 31.25%

Your real financing costs

To find out what your home will actually cost, you add the amount of the mortgage, the effective interest rate, the amortization costs, as well as the monthly costs incurred for maintenance. The total shouldn't be more than one-third of your gross annual household income.

Realistic costs
First mortgage (CHF 600,000): 1.75% example interest rate**** CHF 10'500.–
Second mortgage (CHF 120,000): 1.75% example interest rate**** CHF 2'100.–
Repayment of the second mortgage** CHF 8'000.–
Ancillary costs / maintenance (1% of the purchase price) CHF 9'000.–
Total per year CHF 29'600.–
Total per month CHF 2'467.–
Share of household income: 18.5%

* Imputed interest rate: Lenders use this purely theoretical interest rate to gage whether you could still afford the mortgage if rates were to rise sharply.

** Repayment: The mortgage is repaid in equal quarterly installments. There is an obligation to repay the second mortgage: The second mortgage must be repaid within 15 years or by age 60 at the latest.

*** Ancillary costs: As a rule of thumb, 1% of the property value should be set aside every year for ancillary and maintenance costs.

**** Example interest rate: This depends on the lender's current rates and the term of the mortgage. We have used a rate of 1.75% in this example to keep things simple.

Keep your own home – even under difficult circumstances

Unexpected events such as illness, accident or death can result in a drop in your income and thereby put your mortgage at risk. A lower income following retirement can also put a strain on your finances. In a worst-case scenario, you might even have to sell your home. Protect yourself now with life insurance.
To life insurance

Do you have any questions? We are there for you

In German and English:

Phone: +41 58 215 44 01

AXA
Mortgage Center / W0.164
General-Guisan-Strasse 40
P.O. Box 357
8401 Winterthur
Phone: +41 58 215 44 01
E-mail: info.hypothek@axa.ch

In Italian:

Phone: +41 58 215 33 15

AXA
Mortgage Center / W0.164
General-Guisan-Strasse 40
P.O. Box 357
8401 Winterthur
Phone: +41 58 215 44 01
E-mail: info.hypothek@axa.ch

In French:

Phone: +41 58 215 34 01

AXA
Mortgage Center / DD-1.662
P.O. Box 7753
1002 Lausanne
Phone: +41 58 215 34 01
E-mail: hyporomandie@axa.ch

Support and frequently asked questions

How much of my own capital do I need to invest?

AXA uses the 20:80 rule: You should invest at least 20% of the purchase price of your own home yourself and borrow up to 80% in the form of borrowed capital (first and second mortgage). The higher the percentage you pay with your own funds, the lower your interest payments will be.

When you take out an AXA mortgage, you must pay at least 20% of the purchase price of the property from your own funds. None of this is allowed to come from an early withdrawal from Pillar 2 or other loans, and pledging Pillar 2 assets is also not permitted.
How do I repay my mortgage?
Mortgage repayment is normally split across two different mortgages:
- 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 covers the remainder of the borrowed capital, usually 13.33% of the purchase price. This must be repaid in full within 15 years or at the latest by your 60th birthday.
How do I draw up a clear and sensible budget?

The running costs of your home shouldn't amount to more than one-third of your gross annual income. These costs include interest on the first and second mortgages, ancillary costs, and repayments for the second mortgage.
For what types of home does AXA grant mortgages?

AXA guarantees – as do many banks – mortgages for primary residences of homeowners. Single-family houses and condominiums with a broad market appeal and good resale potential

The minimum mortgage amount is CHF 400,000.

For what types of investment properties does AXA grant mortgages?
- Mainly residential, office, and commercial properties that are rented out to third parties and have broad market appeal and good resale potential
- Short-term vacancy rate of up to 5% – 10%
- Up to 30% of rental income from hospitality/commercial/industrial tenants
The minimum mortgage amount is CHF 800,000.
For which properties does AXA not grant mortgages?
- Construction land / construction projects
- Vacation properties (vacation chalets/apartments/houses)
- Properties abroad
- Financing of subordinate mortgages
- Properties financed with the help of the Swiss confederation under the WEG (Law Promoting the Construction and Ownership of Housing)
- Properties in bad condition
- Properties intended for resale
- Special-purpose properties, e.g. agricultural, schools, residential homes, hotels, restaurants, commercial, industrial
- Projects by applicants with questionable or non-transparent creditworthiness and/or properties for which legal enforcement measures apply
What happens to my mortgage if I die?

Your heirs must accept a sudden loss of earnings if you die. This loss of earnings puts the mortgage at risk. In a worst-case scenario, your home would have to be sold. With whole life insurance you can prevent this, as it allows your heirs to reduce the mortgage debt. The interest payments from the remaining income thereby remain affordable.

For your own home Mortgages