The affordability check is an essential part of the mortgage lending process. Not only does it protect borrowers from potential overburdening due to excessive debt, but it also minimizes the risk for lenders by helping to avoid default. In Switzerland, banks are legally obliged to carefully check affordability before granting a mortgage. This practice promotes responsible lending and contributes to the stability of the real estate market.
However, assessing affordability is not just a job for banks. Borrowers also benefit if they realistically assess their financial situation and become aware of the burdens they may face. Careful planning and consideration of all relevant costs are crucial to enjoying your home in the long term and staying financially healthy.
2024-03-07 19:18:39
#Mortgage #affordability #calculation #background
