Rent or buy: Home ownership is often more within reach than you think

Many home seekers concentrate exclusively on rental listings and overlook the wide range of suitable properties available on the sales market. Taking this option into account is worthwhile: it broadens your choices and increases your chances of finding the right home.

Key requirement: affordability

The good news is that you usually don’t need to finance the full purchase price yourself. Up to 80% can typically be covered through a mortgage. What matters most is affordability: ongoing costs – including mortgage interest, amortisation and ancillary costs – should not exceed one third of your income.

To save you from complex calculations, you can determine your maximum affordable property price: simply enter your equity and income to see what price range is realistic for you. If you’re buying jointly (e.g. as a couple or group), you can combine both your equity and your incomes.

Which mortgage is best for you?

There are different mortgage models available to finance your home. The main differences lie in the level of planning security and flexibility they offer.

Fixed-rate mortgage

You agree on a fixed interest rate for a defined term – for example 5, 10 or 15 years.

• High planning security
• Protection against rising interest rates
• Less flexibility if you exit early
• Suitable for: those who prefer stable and predictable housing costs

SARON mortgage

The interest rate is based on the current money market and is adjusted regularly.

• Often cheaper in a low interest rate environment
• Benefits from falling interest rates
• Less planning security
• Suitable for: those who value flexibility and can tolerate interest rate fluctuations

Variable mortgage

The interest rate is set by the bank and can be adjusted at any time.

• Very flexible (often short termination periods)
• No fixed term
• Generally higher interest rates than other models
• Suitable for: short-term financing or transitional solutions, e.g. before a sale

In practice, these mortgage types are often combined to achieve a balanced mix of security and flexibility.

Why many people choose home ownership

Owning your own home is more than just an alternative way of living. For many, it represents greater independence and a long-term investment in the future.

• Build equity instead of paying rent: Part of your monthly expenses goes directly into your own property.
   
• Wider choice: The sales market often offers more variety than comparable rental properties.
   
• Better predictability: With the right financing, housing costs can be planned more reliably over the long term.
   
• Greater freedom: You decide on renovations, interior design and how you use your space.
   
• Less dependency: No risk of termination due to owner occupancy or restrictions from a rental agreement.
   
• Long-term security: Home ownership can also play an important role in your financial retirement planning.