je connais mon banquier je connais mon banquier
je connais mon banquier je connais mon banquier
Simple and attractive mortgages
for the purchase or construction
of your house or apartment
je connais mon banquier je connais mon banquier
je connais mon banquier je connais mon banquier
je connais mon banquier je connais mon banquier
je connais mon banquier je connais mon banquier
je connais mon banquier je connais mon banquier
je connais mon banquier je connais mon banquier
je connais mon banquier je connais mon banquier
Financing
je connais mon banquier je connais mon banquier
je connais mon banquier je connais mon banquier
je connais mon banquier je connais mon banquier
je connais mon banquier je connais mon banquier
je connais mon banquier je connais mon banquier
Index
Page
1. Defining your needs
4
2. Estimate the cost of your property investment
8
3. Step-by-step review
13
4. Mortgage loans from the Banque Cantonale de Genève
14
5. Services linked to mortgage loans
20
6. Owner’s guide
22
7. Draw up your financial plan
26
8. Calculate your household budget
27
2
Are you thinking of building, buying or renovating a property?
Do you already own a property and are you looking for financing options
best suited to your personal situation?
The Banque Cantonale de Genève can offer you simple and attractive
mortgage options tailored to fit your individual needs. The Bank will provide
you with the advice you need at every stage on the way to becoming a
property owner, and will share its experience and expertise throughout
the Canton of Geneva and in the surrounding areas of France.
And that’s not all
The Banque Cantonale de Genève has available a wide range of complementary
products which we will be happy to propose. As the holder of a Banque Cantonale de Genève
mortgage, you have access to the bonus provided by BCGE Avantage service1 and each year
you can receive an interest rate bonus on your savings account of as much as 2% per year.
Our mortgage specialists will work with you and do everything possible to provide
comprehensive solutions to enable you to achieve your dreams.
Please see also our website www.bcge.ch
3
1 Valid for a housing mortgage loan starting at CHF 200,000; see the brochure “BCGE Avantage service” or page 21
1. Defining your needs
What type of house or apartment should I buy?
Do you want to buy a home from a plan or one already built? Attached or detached?
An apartment2 or a house? Would you like a garden or maybe a view? These are just some of
the questions to ask yourself before making your final decision. The right choice depends on
your dreams and, of course, your budget.
Town or country?
Perhaps you already know exactly where you want to look? In town, out in the Geneva
countryside, or even in the surrounding areas of France?
Do you prefer to live out in the country, in a quiet, rural situation and are therefore willing to
accept the longer commute to work? If so, easy access to public transport, shops and schools
is really important.
4
Or, let’s say you want to live in town. In that case, is there parking available? Are there enough
streets with shops and services, cafés and restaurants near your house or apartment? Is public
transport close by? And what about schools for your children?
Buying or building?
You’ve defined what you want? Then you can make your dreams come true by building
or buying an existing property.
Buying an existing house or apartment has a number of advantages: you can go over it before
buying and check out whether it really is what you are looking for. The property is usually
available quite quickly and its price is fixed.
On the other hand, you will certainly want to give it your personal touch: new wallpaper,
new floor coverings, a new kitchen or bathroom. Depending on its age and the way it has
been maintained, these costs can correspondingly increase your budget. We would advise you
to have an expert carry out a survey of the property you want to buy and to ask for receipts
showing the maintenance work undertaken by earlier owners.
2 PPE: Propriété par étage (Ownership by floor)
If it is a condominium apartment, ask for a statement of the maintenance provision account
and check whether it is adequate.
Or perhaps you would rather build your dream house the way you want it? If you do this,
you will have the pleasure of designing your house to match your needs and tastes as closely
as possible: number and size of rooms, selection of materials, type of kitchen and even the
number of windows. Of course, the decisions you will have to make will take a considerable
amount of your time. In addition, in order to avoid budget overruns and delays, we would
advise you to follow progress on site very closely.
It is also important to carefully select the architect or developer you are going to work with.
Obtain references and do not hesitate to request a visit to similar buildings they have
developed in order to be certain that their style really is what you want. Also, take enough
time to explain your wishes, discuss details and define budgets.
5
Look over it thoroughly and critically
You have found your dream house or the plot where you want to build your dream.
It is now vital to consider certain things critically.
• Arrange for experts to carry out a survey
of the property you have selected
• Enquire about the sale price and compare
it with what is happening in the housing
market. Our specialists at the Banque
Cantonale de Genève can help you assess
the value of the properties which interest you
• If you decide to buy a building plot,
it is essential to obtain a zoning plan from
the municipality to find out if you will be
allowed to build on the plot
• Obtain information from the municipality
about the developments occurring in the
area. Are new houses or apartments to be
built? What are they like?
• Obtain an extract from the land registry
which gives the rights and obligations
(easements) attached to the plot and building
• Check the state of the building and ask
for proof of work already done
• Look carefully at which direction the house
or apartment faces as this will have an
impact on internal light levels
6
What does the notary do?
A notary is essential and has a number of important functions. In particular,
he is responsible for:
• Explaining your rights and duties
• Preparing most of the documents needed
for the transaction
• Examining the deeds
• Drawing up the deed of sale
• Registering the house or apartment at the
land registry
• Protecting your interests
3 Please refer to page 9 for more details concerning purchase costs
The notary’s fees can vary according to the
amount of work required. They are part of
the purchase costs you must consider3.
What is the land registry?
Before buying a plot or a house,
you must obtain information from the land
registry on details of liens on buildings and
land. Among other things, it will provide the
name of the owner, existing liens, and above
all the easements attached to the property,
such as a right of access.
You will become the real owner of your
house, apartment or plot only when the sale
has been formally and duly registered.
7
2. Estimate the cost of your property investment
Draw up a financial plan
When financing a property purchase it is essential to draw up a financial plan which
defines the required down payment and the later costs and expenses. This will enable you
to clearly determine the maximum cost of your future property which you can afford to pay.
Your financial plan has three stages:
1 Define the total cost of your property
purchase and the division of the financing
between down payment and mortgage loan
2 Calculate the monthly and annual
financial costs of your mortgage
3 Estimate the additional needs for cash
from your property investment, for
example, for a pool or a veranda
8
It is important that your income is sufficiently
high for you to be able to cover all the costs
of your financial plan without difficulty. These
costs should not exceed 1/3 of gross family
income. Do not forget that interest costs
may vary over time, depending on the kind
of mortgage you choose and the global
economic situation. At the end of the
brochure you will find a worksheet to help
you draw up your financial plan.
What is a mortgage loan?
The bank lends you money in the form
of a mortgage loan to finance your property
purchase. To be able to make this loan
the bank takes a lien on the property which
it is financing. This lien takes the form of
a mortgage deed. In general, the loan does
not exceed 80% of the value of the property.
Mortgage loan
80%
Value of the
property
Down payment 20%
What is the amount of your down payment?
So, to finance your purchase, you must pay 20% of the value of the property from your
own resources. This down payment can be made in different ways:
• Cash: using your own money
• 2nd pillar: using the funds in your
occupational retirement plan, either by
withdrawing the amount available, or
by placing it as security with the bank
• 3rd pillar, whether “tax-exempt” or
“taxable”4: in other words by using your
personal retirement savings either by
withdrawing the amount necessary to
meet your down payment needs, or by
depositing it as security with the bank
in order to obtain a larger mortgage
Own funds provided by cash and/or 3rd pillar funds must represent a minimum of 10%
of the pledge value retained by the bank.
Have you allowed for the purchase costs?
When you buy property you have to
pay different fees, taxes and charges. For that
reason we advise you to take into account
what are called “purchase costs” in the total
cost of the transaction. They include the
notary’s fees, transfer taxes, land registry fees,
or even the costs of drawing up a mortgage
deed. In most cases, you have to cover these
costs from your own funds.
In the Canton of Geneva the purchase costs
are estimated at between 2% and 3% of
property purchases up to CHF 1,000,000
and at approximately 5% for transactions
above that amount.
4 See the brochure “BCGE Praevisio”
9
What are mortgage repayments?
Mortgage repayments mean the repayment on your loan. The purpose of the mortgage
repayments is to reduce your debt. As a general rule, you repay between 1% and 2% of the
debt each year. When interest rates are low, it is advisable to take advantage of the situation
to pay off more of the debt or to put some money aside in case of future interest rate increases.
An amount of the mortgage loan representing at least 2/3 of the property value retained by
the bank must be amortised over a maximum period of 20 years.
You can take advantage of direct or indirect mortgage repayments
If you choose direct mortgage repayments you regularly repay your mortgage to the bank.
Your debt and therefore your future interest costs are reduced by each payment5.
10
You can choose indirect mortgage repayments when you use a “3rd pillar” retirement plan.
In that case the payments are credited to your “3rd pillar” account instead of contributing to the
reduction of your debt. In this way you have the tax benefits of a tax-exempt 3rd pillar, and on
the other hand you contribute to your personal retirement savings.
At the maturity date of your 3rd pillar, all or part of the amount saved is used to repay the mortgage.
During the duration of the mortgage loan you can, if you wish, also make mortgage payments from
your 3rd pillar, but no more than once every five years. Please remember that tax is due on each
withdrawal from a tax-exempt 3rd pillar. The tax rises progressively according to the amount withdrawn.
5 In a period of stable interest rates, the interest charges can increase or decrease, depending on changes in interest rates
Indirect mortgage repayments provide you with the following advantages:
• Your mortgage debt remains unchanged
throughout the whole period of the loan
and you may deduct it completely
from your wealth
• You may also deduct from your income
the payments made to your tax-exempt
3rd pillar account, to the extent
permitted by law6
• You may also deduct the interest from
your taxable income; the interest will
remain higher, as your debt will
be unchanged
• You benefit from a very attractive interest
rate on your 3rd pillar account with the
Banque Cantonale de Genève
Interest charges
Rental value
Service charges
Mortgage
repayments
charges:
payment on
your 3rd pillar6
11
Income
Taxable income
6 For the annual deduction permitted by law, see the brochure “Fees and conditions for payment and other services”
What are the maintenance costs of
your property?
12
Over and above the interest and
mortgage payments, a house or apartment
involves significant costs arising from its
upkeep. Among these costs are, for example,
maintenance of the exterior, the roof, the
windows, the floors, the paintwork, and the
garden. Depending on the age of the building,
these can be between 0.5% and 1.5% of the
value of the property each year. For this reason
it is advisable to put money aside regularly in a
maintenance account to cover future costs
and to be aware that an older property
requires more maintenance. Some of
these costs may be deducted from your
taxable income.
Are there other costs relating to a
house or apartment?
In your personal budget you should also
consider the running expenses for any house
or apartment: for example, the costs of
heating, electricity, water, building and
household liability insurance, property
taxes, etc. In addition, there are the indirect
expenses arising from your move: furniture,
garden tools, hardware and fittings, etc.
Assess your insurance needs
Remember that once you own your
own house or apartment, your insurance
needs increase significantly. You must
insure your property against fire, natural
hazards and water damage. We also
strongly advise you to review your
personal insurance coverage so you can
cover home ownership costs if the
unexpected should happen
(incapacity or death).
If you decide to build, as the person
commissioning the building, you must take
out construction insurance and public
liability insurance.
From the broad range of possibilities
available in co-operation with our partners,
the Banque Cantonale de Genève is able to
offer you insurance options tailor-made to fit
your needs.
3. Step-by-step review
The following provides a step-by-step review of the stages on the way to becoming
a house or apartment owner:
1 Define exactly your needs and set
your priorities
2 Draw up your financial plan. Calculate the
amount of money you have available for a
down payment (20% of the value of the
property is required) and decide on the
mortgage you can take on, as well as the
price of the property you wish to acquire
3 Call on the professionals of the Banque
Cantonale de Genève to provide an estimate
of the value of the property which interests
you and details of the sales contract
4 Contact your counsellor at the Banque
Cantonale de Genève so that you can
jointly arrange finance
5 Negotiate the terms of the sale and the
price of the transaction with the seller
of the property
6 Once your decision is taken and the loan
has been approved by the bank, you can
formally buy the property with the help
of the notary
The counsellors of the Banque Cantonale de
Genève are available to help and support
you every step of the way to becoming a
property owner.
13
4. Mortgage loans from the Banque Cantonale de Genève
The range of mortgage products offered by the Banque Cantonale de Genève makes
it possible to meet the requirements and accommodate the particular circumstances of every
home owner. A talk with one of our counsellors will reveal the best solution tailored to your
financial requirements and individual circumstances. Our aim is to offer you a simple, quick,
and cost-effective solution customised to your needs and expectations.
Building loan
You finance the building or renovation from a current account which is drawn down
to cover the stage payments as the work progresses. When the work is complete, the loan is
consolidated in the form of a fixed or variable mortgage loan. The interest arising from the
building loan, called construction period interest, is included in the consolidation.
14
Your advantages
• You obtain the credit limit needed for your
building project
• You authorise the bank to pay the bills as
the work progresses
• Your interest is calculated only on the
amount of the loan actually used
• You do not have double costs:
the interest incurred during the
construction period is incorporated into
the total amount of the building loan and
is not an extra cost in addition to your
current rent
• You can consolidate your building loan
into a mortgage before the end of the
construction work
Fixed-rate mortgage (2 to 15 years)
When a new loan is approved or an existing one is renewed, you may fix the rate of
interest on the loan for a term varying from 2 to 15 years. In this way the rate does not vary
and you know exactly what your costs are during this period. At maturity you may renew for
the same or a different term, or you may choose a mortgage at the Libor or variable rate.
This type of mortgage loan is appropriate if you wish to protect yourself against future interest
rate rises and are looking for fixed monthly payments. It is advisable to fix the interest when
general rate levels are low and an increase is expected. In addition, to make it easier for you
to monitor your loan, you can disregard the notions of first and second tier and have a single
rate applied to the whole of the sum you borrow.
15
Your advantages
• Your interest rate is fixed in advance
and does not vary during the selected term
(2 to 15 years)
• You are sheltered from a rise in rates until
your loan matures
• You may plan your budget with peace
of mind as the interest costs are stable for
the whole term
• You may deduct the mortgage interest
on your annual income tax return
To find out the current rates depending on the term, see our website www.bcge.ch.
You will find them under the heading “Taux et tarifs”(“Rates and fees”) on the home page.
Spread the risks, choose a number of different terms
You may divide your mortgage loan into a number of different payment periods
(a minimum of CHF 100,000 per tranche) and fix different rates for each of them. For example,
a combination of different terms at a fixed rate or a fixed rate and a Libor-based rate.
Example: division into two tranches
16
This possibility enables you both to fix a part of your loan over the long term at a current very low
interest rate and at the same time to take advantage of an even lower short-term rate. This possibility
can also be extremely useful if you anticipate income becoming available in the medium term which
you can then use to repay the shorter-term tranche of your loan. We recommend that you undertake
a close examination of your financial situation and objectives together with your adviser at the Banque
Cantonale de Genève.
Your advantages
• You optimise your interest rate risk to fit your financial situation and your needs
• You can plan your budget with confidence because you know all the charges you will pay
• You can deduct the interest on your annual income tax return
Fix your rate in advance
By fixing in advance the rate of interest you will pay on your loan, or on a loan to be renewed
in a few months, you protect yourself against a possible evolution in interest rates. This
arrangement is particularly attractive when an increase in interest rates is expected.
Example of a rate fixed in advance (forward rate)
Movement of
interest rates
}
Interest rate fixed
in advance
based on current rates
The increase you avoid
Purchase of your
new home or renewal
of your existing loan
Variable-rate mortgage loan
The rate applied to your loan is variable, that is, it may rise or fall depending on the general
level of interest rates in the markets.
In general, the variable-rate mortgage loan undergoes relatively moderate and infrequent
variations in the interest rate. This type of loan is advisable when the general level of interest
rates is high and you wish to take advantage of future reductions. In addition, it gives you
maximum flexibility and may be changed at any time to a fixed-rate mortgage loan.
Your advantages
• You benefit from interest rate reductions in
the markets
• You ensure maximum flexibility at the
same time as maintaining relative stability
in your budget
• You have the option of switching your
variable rate mortgage loan at any time to
a fixed-rate loan
• You may deduct the interest on your
annual tax return
17
Libor rate mortgage loan7
If you wish to have a high degree of flexibility and to take advantage of the lowest rates
on the money markets, and if you think that rates are not going to rise in the short term, you
may finance your house or apartment, in whole or in part8, with a Libor rate mortgage loan.
The interest rate on your loan is determined each quarter by the three-month CHF Libor rate.
Unless you advise us otherwise two weeks before the maturity date, the part of your loan at
the Libor rate will be automatically renewed for a further three-month term. At each maturity
date you may choose a fixed rate or variable rate mortgage loan under very favourable
conditions. As the Libor rate is an interest rate which can fluctuate widely and sharply, it is
advisable to follow the financial markets on a regular basis if you choose this type of product.
Interest rates
Libor rate 3 months
18
Your advantages
• You benefit from very attractive rates
when the general level of rates on the
capital markets is stable or falling
• Every quarter you have the option of
moving your Libor-based loan to a
variable-rate or fixed-rate loan
• You can switch very quickly if interest rates
rise by moving out of your Libor rate
on extremely favourable terms
• You can optimise your interest rate risk
by dividing your loan between a short-term
rate (Libor) and a medium-term or long-term
rate (fixed rate from 2 to 15 years)
• You have maximum flexibility in the total
or partial repayment of your Libor-rate
mortgage loan
• You may deduct the interest on your
annual income tax return
7 Libor: London Interbank Offered Rate – the rate applied between leading banks on the London money market
8 To limit the risks arising from rate fluctuations, your mortgage loan should be made up of a tranche based on the 3-month Libor rate and of one or more fixed-rate tranches
Mortgage loan for a Minergie® property
The Minergie® label is a “green” option that enables you to benefit from attractive
rates while protecting the environment. Our Minergie® option is available to all clients who
want to take out a mortgage loan.
Minergie® is a quality label that can be applied to any new or renovated buildings that meet
certain criteria (waterproof exterior, thick heat insulation and good air circulation system) to
limit their environmental impact and minimise energy consumption. The Minergie® Association
(AMI) is supported by the Swiss Confederation, the cantons and by private industry.
The BCGE finances 100% of the extra cost involved in the Minergie®9 option for all types of
property. You do not have to provide additional funds.
Your advantages
• The Minergie® option allows you to
benefit from attractive rates while
protecting the environment
• Minergie® applies to all types of mortgage
loan in the BCGE Simplissimmo range
• The extra cost of the Minergie® option is
financed by the BCGE
The “France” mortgage loan
19
Is your income in Swiss francs? Is your property in the neighbouring areas of France?
The BCGE “France” mortgage loan is tailor-made for you.
Denominated in Swiss francs, this mortgage loan gives you the option of financing a principal or
weekend residence in the bordering departments of Ain or Haute-Savoie. You make the payments
in the currency of your income and you avoid both exchange-rate risks and foreign payment costs.
You may select a fixed-rate, Libor, variable-rate or mixed-rate mortgage according to your
needs and expected mortgage rate changes. In addition, you are free to choose the mortgage
repayment period which suits you. The loan must be repaid at the latest by the expiry date of
the insurance policy you take out.
Your advantages
• You have a mortgage loan at
competitive rates
• You have a flexible repayment period up
to a maximum of 50 years10
• There is no exchange-rate risk between
your income and the payments you have
to make
• You have access to the vast range of
BCGE Simplissimmo products
9 To a maximum of 10% of the construction costs excluding the cost of the land
10 Depending on your age when the contract is signed, and the period of life insurance linked to the loan
5. Services linked to BCGE mortgage loans
3rd pillar account
The Epargne 3 account offered by Banque Cantonale de Genève is the best way to repay
your mortgage loan indirectly11. In addition to a high rate of interest, you benefit from all the
tax advantages of the tax-exempt 3rd pillar12.
Your advantages
• You benefit from an account at a
preferential interest rate, the interests of
which are not subject to withholding tax
• Your capital accumulated in the Epargne 3
account is not subject to wealth tax
• You increase your personal retirement plan
• You benefit from tax savings by being able
to deduct the payments from your income,
to the extent allowed by law13
• You repay your mortgage loan indirectly
Insurance protection
20
When you become a property owner,
it is advisable to check your insurance
coverage against such possibilities as the
death of your husband or wife or their
inability to earn. The Banque Cantonale de
Genève is in a position to give you advice
on this matter and to offer you insurance
coverage suited to your particular needs.
Your advantages
• You limit the financial impact of death
or incapacity
• You benefit from the favourable conditions
obtained by the Banque Cantonale de
Genève from its partners
• You can protect yourself effectively
without going through any complicated
administrative procedures
11 You will find further information on indirect repayment on page 10
12 See the brochure “BCGE Praevisio”
13 See the brochure “Fees and conditions for payment and other services”
BCGE Avantage service interest bonuses14
If you hold a mortgage loan from the Banque Cantonale de Genève with a minimum
value of CHF 200,000 you can take advantage of the BCGE Avantage service bonus
programme. You can have an additional interest rate bonus on your savings account rising
to a maximum of 2%. Talk to your Banque Cantonale de Genève adviser. He can give you
detailed information about this very attractive bonus programme.
Your advantages
• You receive an interest rate bonus rising to
2% of the balance in your savings account
• Your bonus is paid in cash into
your savings account
• Your savings increase faster
21
The strengths of the Banque Cantonale de Genève
• Simple and attractive mortgage options
which are adapted to your needs
• Personalised and professional advice near
your home wherever it is in the canton
• Experience and in-depth knowledge of
Geneva and its area
• A customer loyalty programme which
provides you with benefits each year
14 Valid for an owner-occupied residence. See the brochure “BCGE Avantage service”
• Services to complement your mortgage loans
• Answers to all your questions relating to
house or apartment ownership
• Financing for your principal or weekend
residence in the Canton of Geneva or in
the surrounding areas of France
6. Owner’s guide
The following list brings together the most important points of our brochure. You can
tick the boxes at each stage in the purchase of your future house or apartment.
22
Define your needs before
buying or building
q What type of house do you want to live in?
How many bedrooms do you need?
How much space do you want?
q Which part of the canton do you want to live in?
Do you prefer the city or the Geneva
countryside?
q Have you thought about the close proximity
of schools, shops and public transport?
Draw up a financial plan
q How much of your own money do you
want to invest?
q What is the maximum mortgage loan you
can take on?
q Don’t forget to include purchase costs in your
calculations. These can vary between 2% and
5% of the purchase price and are not
financed by the bank
q Calculate the financing costs attaching to your
mortgage loan and include a safety margin to
meet possible rate increases
q Calculate the amount of the annual
repayment of your mortgage loan
q Estimate your maintenance costs. Depending
on the age of your property, they may lie
between 0.5% and 1.5% of the purchase
price each year
Look over the property
thoroughly and critically
q Have you checked the selling price? Is it
justified? Seek the advice of a specialist and
have a survey made of the property you want
to buy
q Have you selected your notary? This is the
person who will provide all the information
you need to know about the administrative
procedures necessary for the purchase of your
house or apartment
q Obtain an extract from the land register
and check the name of the owner, current
liens and easements applying to the plot or
building you are interested in
q Check which way the building or plot is facing
as this will affect the light in your future house
or apartment
q If you wish to build your own house, obtain
references from the architect or the general
contractor. Inspect buildings they are
responsible for. Define their responsibilities
for planning, specifications, estimates,
and supervision of the worksite
q Obtain a zoning plan and the sector
regulations from the municipality to find out
if the plot may be built on, and within what
limits. Check also if there is water, electricity
or gas available
q Find out about planned development of
neighbouring plots and main roads
23
The sales contract
24
q To be valid, the sales contract must be duly
authenticated, i.e. before a notary
q A deposit should be paid into an escrow
account only if your decision is final and
if the bank has approved the finance for
the property
q The vendor is responsible for the tax liability
arising from a capital gain on property.
Check whether the sales contract contains a
clause to this effect
q Check whether the different costs, fees and
taxes relating to the property have been paid.
If not, the municipality may exercise its right
of lien on the land
q Has the vendor transferred to you the
warranty rights from suppliers and
tradesmen? If this is not the case, you will be
responsible for future costs even though they
are covered by the warranty
Obtain insurance coverage
for your property
q Take out insurance covering fire, natural
hazards and water damage on your residence
q If you decide to build, as the person
commissioning the building, you must take
out construction work insurance and public
liability insurance
q Check also your coverage for disability and
death. It is often necessary to obtain life
insurance or income protection insurance in
order to be able to continue to meet the costs
of your property, should the unforeseen arise
This list is not exhaustive. However, it does
contain the main areas you must think
about in the process of building or buying
your house or apartment. The advisers
of the Banque Cantonale de Genève can
support you and provide valuable advice
resulting from their vast experience and their
knowledge of the Geneva property market.
25
7. Draw up your financial plan
Financial plan
Example
A Purchase / construction price
B Purchase costs (3%15 of A)
21,000
C Total purchase cost (A + B)
721,000
D Your down payment (20% of A + purchase costs)
161,000
E Mortgage financing (80% of A)
560,000
F Interest on the loan (3% of E)
16,800
16
G Annual maintenance costs (estimated at 1% of A)
26
7,000
H Total annual cost (F + G)
23,800
I Repayment of the loan (2% of E)
11,200
J Annual cash-flow requirements
35,000
K Monthly cash-flow requirements (J/12)
Your budget
700,000
2,917
In order to ensure that you will be able to cope with possible interest rate increases, we
advise you to go through the same calculations with higher interest rates (4%, for example).
The cash-flow requirements arising from your investment must not exceed one third of your
gross income. If you have other financial commitments, such as leasing or alimony, you must
take them into account in your calculation of the above ratio.
In order to estimate the financial burden
which your purchase will impose, we advise
you to compare the monthly cash-flow
requirements with your current rental costs
or mortgage payments.
This financial plan is for reference only, to
provide a better illustration of the financing
of your house or apartment. Our advisers are
available to help you draw up your personal
financial plan.
You can also do these calculations via the
internet at www.bcge.ch
15 Approximate expenses for a house or apartment located in Geneva, see page 9
16 Rate given for illustration only. You will find current rates on our website
www.bcge.ch
8. Calculate your household budget
A Your income
Per month
Per year
Your net salary
Your spouse’s net salary
Other income
Total of A
B Your expenses
Taxes
Insurance (household, health, etc.)
Groceries / household costs
Electricity / heating
Clothing and shoes
Alimony / maintenance payments
Telephone – land line / mobile
Radio / television
Medical costs / prescription costs
Car and fuel
Public transport / parking
27
Personal expenses (magazines, newspapers, etc.)
Leisure activities
Holidays
Exceptional expenses
Sundries
Total of B
Total available (A - B)
This is the available amount to spend on
your house or apartment.
Contact one of our specialists in our
extensive branch network to draw up
a personalised proposal to match your
own situation.
This document is printed on FSC® certified paper – FSC-C008839
Telephone: +41 (0)58 211 21 00
E-mail: [email protected]
www.bcge.ch
7168 E / 6 – 1,000 – 02.2013
Banque Cantonale de Genève
Registered office:
Quai de l’Ile 17
CP 2251
1211 Genève 2
Private Banking in Switzerland
Quai de l’Ile 17
CP 2251 – 1211 Genève 2
Avenue de la Gare 50
CP 159 – 1001 Lausanne
Lintheschergasse 19
Postfach 4068 – 8021 Zürich
This brochure is translated from the French original, which remains the official version.
Banque Cantonale de Genève reserves the right to change the fees and services set out in this brochure at any time.
22 branches in Geneva