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Affordability in later life: can we still get a mortgage at 68?

No mortgage in retirement? Banks then calculate with your pensions. The calculator shows in one minute where your figures stand under usual bank practice.

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With bank practice from UBS and Raiffeisen and legal references · As of 30 September 2026 · Dominik Devaja

Your stage of life
Result under usual bank practice Within the usual range
Housing costs as % of income26.9 % – 28.9 %
usual upper limit33.3 %
MortgageCHF 900,000
Imputed interestCHF 40,500 – CHF 45,000
Repayment of second mortgageCHF 6,667
Maintenance and running costs (1 %)CHF 12,000
Housing costs per year (bank calculation)CHF 59,167 – CHF 63,667

    Usual bank practice, every bank calculates slightly differently. No financing commitment.

    On this page
    1. How do banks calculate affordability?
    2. Can you still get a mortgage in retirement?
    3. May I use money from my pension fund or pillar 3a?
    4. To be honest
    5. Frequently asked questions

    And what does the bank’s calculation look like in practice?

    How do banks calculate affordability?

    Banks calculate affordability with an assumed interest rate, not today’s rate. This imputed rate (kalkulatorischer Zins) is 4.5 to 5 per cent, depending on the bank. Added to it are repayment (Amortisation), meaning paying off the second mortgage, and 1 per cent of the price for maintenance and running costs.

    The bank divides the total by your gross income. In working life, it should not exceed a third (UBS and Raiffeisen, as of September 2026). A loan-to-value (Belehnung) of up to 80 per cent is usual, the share the bank finances. The second mortgage is the part above two thirds of the value. It must be repaid within 15 years (Swiss Bankers Association).

    What this means for you: the calculation has three lines, and you can follow each one yourself. Usual bank practice, every bank calculates slightly differently. No financing commitment. The calculator above shows where your figures stand.

    Worked example

    Working life: purchase price CHF 1 million, income CHF 200,000

    Own funds (Eigenmittel) CHF 200,000, that is 20 per cent. The mortgage is CHF 800,000.

    Imputed interest 4.5 to 5 per cent
    CHF 36,000 to 40,000
    Repayment: (800,000 − 666,667) ÷ 15 years
    CHF 8,889
    Maintenance and running costs 1 per cent
    CHF 10,000
    Costs per year
    CHF 54,889 to 58,889
    Share of income
    27.4 to 29.4 per cent: within the usual range
    Parameters: UBS and Raiffeisen, Swiss Bankers Association section 2.2 · as of September 2026. Usual bank practice, every bank calculates slightly differently. No financing commitment.

    Can you still get a mortgage in retirement?

    Yes, a mortgage in retirement is possible if affordability works out with your pensions. Your pensions then count as income. In later life, Raiffeisen uses an imputed rate of 5 per cent.

    The limit is not uniform. UBS still uses a third, Raiffeisen allows 38 per cent. The first mortgage can remain up to two thirds of the value. The second must be paid off by retirement (as of September 2026).

    An example: a flat for CHF 1 million, CHF 400,000 own funds, pensions of CHF 120,000 a year. Interest and maintenance come to CHF 40,000, exactly a third. With pensions of CHF 110,000, it would be 36.4 per cent: tight.

    What this means for you: the proceeds from your house count as own funds. The more of it goes into the flat, the smaller the mortgage. And the smaller its share of your pensions. If you are searching as a daughter or son, work through the figures together with your parents.

    Worked example

    Retirement: flat for CHF 1 million, pensions CHF 120,000

    Own funds CHF 400,000, for example from selling the house. The mortgage is CHF 600,000, that is 60 per cent.

    Imputed interest 5 per cent
    CHF 30,000
    Repayment (mortgage below two thirds)
    CHF 0
    Maintenance and running costs 1 per cent
    CHF 10,000
    Costs per year
    CHF 40,000
    Share of pensions
    33.3 per cent: within the usual range
    Parameters: Raiffeisen «Affordability in retirement» (translated), UBS · as of September 2026. Usual bank practice, every bank calculates slightly differently. No financing commitment.

    May I use money from my pension fund or pillar 3a?

    Yes, for a home you live in yourself. You may use your pension fund (Pensionskasse) and pillar 3a (Säule 3a), your private pension savings. Pension fund money is available up to three years before your entitlement to retirement benefits (Art. 30c Occupational Pensions Act, BVG). So in retirement, this route is closed.

    You can draw on pillar 3a for home ownership every five years. Married or in a registered partnership? Then your spouse or partner must agree in writing (Art. 3 BVV 3, as of September 2026).

    The Swiss Bankers Association sets a limit. At least 10 per cent of the lending value, in simple terms the purchase price, must be own funds not from the pension fund. The financial market supervisor FINMA has recognised this rule.

    What this means for you: enter in the calculator how much of your own funds comes from the pension fund. In retirement, this field is locked, because an early withdrawal is no longer possible.

    You know your limits. With a search profile, you hear when one of our properties fits them. What buying costs beyond the price is shown under purchase costs by canton.

    Create search profileFree · no mandate · only properties that match

    To be honest

    When is renting the better answer?

    If your calculation is tight or above the range, that is no judgement on you. It can mean that renting is the better answer for now. You stay flexible and keep your money.

    When this applies is explained on the page about moving home: when renting is the better answer.

    What do buyers often ask about affordability?

    Why does the bank use 5 per cent when interest rates are lower?

    Because the bank checks whether you could carry the mortgage at higher rates too. So it assumes a long-term average of 4.5 to 5 per cent, above today’s market rate (UBS). Each bank sets its own rate.

    Do the proceeds from my house count as own funds?

    Yes. What remains after tax, mortgage and selling costs can be used as own funds. It lowers the new mortgage. The valuation with net calculation shows how much that is.

    How much equity do I need to buy a home in Switzerland?

    As a rule, 20 per cent of the purchase price, because banks usually finance up to 80 per cent. At least 10 per cent must come from funds other than the pension fund. The purchase costs by canton come on top.

    Do I have to pay off the mortgage as a pensioner?

    The second mortgage must be paid off by retirement. The first, up to two thirds of the value, can remain if your pensions carry it (UBS and Raiffeisen).

    How high may housing costs be as a share of income?

    In working life, at most a third of gross income. In retirement, 33 to 38 per cent of pensions, depending on the bank. Usual bank practice, every bank calculates slightly differently. No financing commitment.

    Does pension fund money count as own funds?

    Yes, in working life. But at least 10 per cent must come from other funds. From three years before your entitlement to retirement benefits, an early withdrawal is no longer possible (Art. 30c Occupational Pensions Act).

    Sources

    1. UBS: Mortgages – what does affordability mean?, in German · retrieved 30.09.2026
    2. UBS: Keeping the mortgage on your home affordable in retirement, in German · retrieved 30.09.2026
    3. Raiffeisen: Affordability in retirement (Tragbarkeit im Alter), in German · retrieved 30.09.2026
    4. Swiss Bankers Association: Guidelines on minimum requirements for mortgage financing, sections 2.1 and 2.2 (recognised by FINMA), in German · version of 13.12.2023, in force since 1.1.2025
    5. Swiss Bankers Association: Guidelines on the review, valuation and processing of mortgage-backed loans, section 3.2 (recognised by FINMA), in German · version of 13.12.2023
    6. Occupational Pensions Act (BVG), Article 30c(1) (SR 831.40) · retrieved 30.09.2026
    7. Ordinance on pillar 3a (BVV 3), Article 3(3)–(6) (SR 831.461.3) · retrieved 30.09.2026

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    General information, not individual advice. The law, the tax assessment and advice from professionals for your situation are what count.

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