- BenutzernameMoneyland User Questions
- Status Member
- Registriert seit1/27/17
- Beiträge2142
Does the bank base mortgage affordability estimates on gross income or net income?
Here you will find the right answers
The moneyland.ch forum lets you exchange knowledge on numerous topics related to money and get answers to your questions at any time. Join forum users and experts in discussions relating to banking, investment, insurance, retirement, telecom and everyday money topics.
Show categories
Does the bank base mortgage affordability estimates on gross income or net income?
Greetings,
Swiss banking guidelines state that banks and insurance companies should calculate affordability based on sustainable income and expenses. However, the exact interpretation and implementation of that guidline is left to each lender to decide.
Because of this flexible approach, the way in which affordability is calculated varies between lenders. Some banks and insurance companies use gross income for mortgage affordability calculations, while other use net income.
If the measure of income used is important to you, make sure to ask lenders whether they look at gross or net income before you apply for a mortgage.
When calculating whether or not your can afford a mortgage, it is generally a good idea to estimate your income too low rather than too high. Basing your decision to get a mortgage on the minimum income you are sure you will receive over the long term ensures that you are able to afford a mortgage despite fluctuations in income or expenses.
Best regards from Moneyguru
More on this topic:
Interactive mortgage comparison
Mortgage affordability explained
Cheap bank accounts with card
Cheap bank accounts with card
Bank WIR Bankpaket Top
Free account & card
No exchange fees for foreign payments (interbank exchange rates)
24 ATM withdrawals worldwide per year free of charge
Radicant
High interest on your everyday account
Best exchange rates
Up to 1% of card spending as saveback in the investment portfolio
Yuh
No account fees
Banking partner: Swissquote & Postfinance
CHF 20 trading credit with code «YUHMONEYLAND»
Alpian
CHF 100 welcome bonus
Favorable foreign exchange rates
Multi-currency account with Visa card (CHF, EUR, USD, GBP)
UBS key4
50 KeyClub points as a welcome gift
Online private account with debit card
Bank WIR Bankpaket Top
Free account & card