Swiss Mortgage Comparison 2024

You can find the best mortgage by following these simple steps:

• Consider which mortgage model would work best for your situation. If you plan to use a fixed-rate mortgage, take time to consider the mortgage term carefully.
• Compare the guide interest rates of mortgage offers which match your criteria using the interactive comparison on moneyland.ch.
• Request a mortgage quote for the most affordable mortgage available. In the case of online mortgages, you can apply directly online if you want to.
• Alternatively, you can use the most affordable advertised interest rates as leverage to negotiate a better mortgage deal with your preferred bank.

Guide mortgage interest rates are showcase interest rates. These are the mortgage interest rates which are advertised by lenders, generally without taking individual creditworthiness and property values into account. Not all lenders publish guide interest rates. Lenders with unfavorable mortgage interest rates in particular tend to avoid publishing guide mortgage interest rates.

Important: The actual mortgage interest quote based on your individual situation may differ from guide interest rates. Depending on your creditworthiness and the property’s collateral value – among other factors – the interest rate you can get may be more favorable or less favorable than the guide mortgage interest rate. Many lenders also allow for negotiation. In the case of online mortgages, the published interest rates are typically the actual interest rates you will get.

The mortgage comparison on moneyland.ch provides a practical overview of more than 400 mortgage interest rates. The comparison is updated twice a day.

Only mortgage offers which match your specific criteria are included in comparisons:

• New mortgage or mortgage refinancing.
• Property type (primary residence, secondary residence, holiday house, investment property, commercial property).
• Preferred mortgage model (fixed-rate mortgage, SARON mortgage, adjustable-rate mortgage, construction loan).
• Maximum loan-to-value ratio.
• Minimum and maximum mortgage size.
• Branch offices in a specific canton.

Fixed-rate mortgages are the most widely-used mortgages in Switzerland. A fixed-rate mortgage has a fixed, predefined interest rate which remains the same over the full mortgage term. Fixed-rate mortgage terms typically range between 2 years and 15 years. But there are lenders which offer 20-year and even 25-year fixed-rate mortgages.

Example: If you get a 10-year fixed-rate mortgage for 500,000 Swiss francs with an annual interest rate of 1%, you will pay 5000 francs per year in interest. You already know when you get the mortgage that you will always pay that 5000 francs in each of the 10 years, so the full cost of the mortgage will be 50,000 francs.

Useful information: Although lenders can change their mortgage interest rates on a daily basis, once you get a fixed-rate mortgage the interest rate remains the same for the full fixed term.

Advantage of fixed-rate mortgages: When you get a fixed-rate mortgage you know right from the start how much the mortgage will cost you each year and altogether. You benefit if interest rates go up because you keep the low interest rate which you locked in for the full mortgage term.

Disadvantages of fixed-rate mortgages: On the flip side, if interest rates sink, you are stuck with the higher interest rate for the life of your mortgage. While it is possible to terminate your mortgage early in order to refinance with a cheaper mortgage, you typically pay high penalty fees for early terminations.

An adjustable-rate mortgage does not have a fixed mortgage term, which makes it a flexible property financing solution. Lenders often recommend adjustable-rate mortgages as an interim solution.

But in Switzerland, the interest rates of adjustable-rate mortgages are rarely adjusted. On the contrary, they often remain unchanged over many years.

Advantage of adjustable-rate mortgages: Flexibility. You can typically terminate your mortgage within three or six months.

Disadvantages of adjustable-rate mortgages: Swiss adjustable-rate mortgage are expensive.

Conclusion: Swiss adjustable-rate mortgages are a costly property financing instrument which should only be used in emergencies.

You can find more information about adjustable-rate mortgages here.

A LIBOR mortgage is a money market mortgage. In Switzerland LIBOR mortgages are sometimes called rollover mortgages.

A LIBOR mortgage does not have a fixed interest rate. The interest rate fluctuates in keeping with the LIBOR (London Interbank Offered Rate) index. Interest rates are composed of the LIBOR (or a hypothetical money market rate when the LIBOR is negative) plus a markup added by the lender.

The advantage of LIBOR mortgages: When interest rates are generally very low, using a LIBOR mortgage can make financial sense because Your mortgage interest rate will automatically adjust to the low market rates. Even when interest rates remain constant over a long period of time, you may still pay significantly less interest than you would with a fixed-rate mortgage.

The disadvantages of LIBOR mortgages: If market interest rates climb, the LIBOR goes up and the interest rate of your LIBOR mortgage also goes up.

In Switzerland, LIBOR mortgages are being phased out in favor of SARON mortgages.

You can find more information about Swiss LIBOR mortgages here.

A SARON mortgage is a money market mortgage. The interest rate of a SARON mortgage fluctuates in keeping with the SARON (Swiss Average Rate Overnight). SARON mortgages are replacing LIBOR mortgages in Switzerland.

The interest rate of a SARON mortgage is variable. It is made up of the SARON rate (or a hypothetical money market rate when the SARON is negative) plus a markup added by the lender. SARON mortgage interest rates change when the SARON changes in keeping with the contractual interest adjustment intervals.

The advantage of SARON mortgages: Using a SARON mortgage is beneficial when interest rates are low. When the SARON index sinks, the interest rate of a SARON mortgage sinks shortly after. SARON mortgages are generally also advantageous when interest rates remain constant over longer periods.

Disadvantages of SARON mortgages: When interest rates climb, the mortgage interest rate quickly follows. When this happens, you pay more for your mortgage than you would if you locked in a low interest rate with a fixed-rate mortgage.

A construction loan is a loan used to finance property construction or renovation. In addition to interest, you typically also pay an additional commission every quarter or a one-time flat fee.

The interest rates of construction loans are typically similar to those of adjustable-rate mortgages (relatively expensive).

A construction loan is typically refinanced with a mortgage once construction is complete.

The interactive Swiss mortgage comparison on moneyland.ch includes all relevant mortgage models and mortgage terms.

• Fixed-rate mortgages with terms of 1 to 20 years.
• SARON mortgages
• Adjustable-rate mortgages (first and second mortgage)
• Construction loans

A split mortgage is a mortgage made up of multiple components, each of which is a mortgage. The mortgages which make up a split mortgage may have different mortgage models and mortgage terms.

Many brokers and banks recommend splitting mortgages into multiple tranches. For example, you could get a split mortgage made up of a 10-year fixed-rate mortgage and a 3-year money market mortgage.

Minimizing risks is often cited as a reason to get a split mortgage. But when interest rates are low or constant, getting a SARON mortgage or a short-term fixed-rate mortgage normally works out cheaper than a split mortgage. When interest rates begin to rise, locking in an affordable rate by getting a fixed-rate mortgage is advantageous.

A split mortgage has an advantage in that you can minimize risk better than you can with separate mortgages. For example, if you are concerned that interest rates will go up in 3 years, you can get a split mortgage a 3-year money market mortgage tranche (to benefit from current low interest rates) and a 10-year fixed-rate mortgage tranche which applies after the first 3 years. However, if interest rates do not develop as you expect, a split mortgage can be more expensive than using separate mortgages.

Split mortgages also have a number of disadvantages, which include:

• Complexity. The split mortgages proposed by some lenders are unnecessarily complicated. This makes you dependent on consultation services from a bank or mortgage broker.
• Negotiating better interest rates for a single, large mortgage is often easier than negotiating better interest rates for multiple small mortgage tranches.
• The main disadvantage of split mortgages is that refinancing a split mortgage is often more difficult. You can normally only refinance a split mortgage when you refinance each tranche of the mortgage with the same new lender. Because the individual mortgage components of a split mortgage normally have different mortgage terms, you may have to wait a long time before you can move to a different lender.

Verdict: Splitting a mortgage into multiple smaller mortgages with different terms is not recommended in most cases. If you believe a split mortgage could benefit you, make sure that the terms and conditions allow you to terminate all tranches when the longest fixed-rate mortgage expires.

The frequency with which mortgage interest rates change depends on the lender and on the mortgage model.

The interest rates of adjustable-rate mortgages have hardly changed in recent years.

The interest rates of money market mortgages (LIBOR, SARON) change relatively frequently. When the money market index is negative, you only pay the markup added by the lender. For this reason, changes in money market mortgage interest rates are minimal during prolonged negative interest environments.

Many lenders adjust fixed-rate mortgages are on a daily basis. Comparing fixed-rate mortgages (with the moneyland.ch mortgage comparison, for example) is a recommended.

moneyland.ch updates the interest rates used by the mortgage comparison twice per day. Updates are performed automatically by drawing interest rates directly from lender websites.

moneyland.ch has created a special calculator which lets you evaluate mortgage interest rates. You can use this calculator to evaluate past interest rate developments and average interest rates of mortgage models and lenders of your choice.

On the whole, it is safe to say that historically, money market mortgages (LIBOR and SARON) and short-term fixed-rate mortgages have been the most affordable kind of mortgage for many years.

Use the mortgage evaluation calculator now

Yes. Many lenders are open to negotiating mortgage interest rates. Online mortgages are generally an exception to this rule.

Consider following these tips to negotiate better mortgage deals:

• Published interest rates are guide rates. Depending on your situation, the real interest rate you can get may be much more favorable.
• While good negotiating skills are important, your creditworthiness plays a much more central role. The better your creditworthiness, the higher the chance of your successfully negotiating a lower interest rate.
• Get quotes from competing lenders. Alternatively, you can use the guide rates available in the moneyland.ch mortgage comparison as leverage for negotiations by showing your bank what the competition is offering.
• Many lenders will lower their interest rates if you show them that you could get a cheaper mortgage elsewhere.
• Stick to the terms you want.
• Keep the full cost of mortgages in mind when negotiating. Note that investing just a few minutes in negotiating a lower interest rate can save you tens of thousands of francs.

The mortgage interest rate assistant on moneyland.ch makes finding the lowest advertised interest rate for the mortgage type you want easy.

The deciding factor is the total cost of the mortgage, so you should look for the lender which offers the lowest interest rate. The cheaper, the better. Whether the mortgage is offered by a bank, insurance company or pension funds is not particularly important in most cases, as long as they offer the mortgage type you need.

Exception: If you require in-depth consultation, using a bank which provides the consultation services you need can be a good move. Mortgages are a core business of banks, while mortgages are not normally a core business of insurance companies and pension funds.

moneyland.ch offers a number of useful calculators which you can use to plan your Swiss mortgages.

Mortgage calculators from moneyland.ch:

• General mortgage calculator: Use this to calculate mortgage costs, amortization, affordability and loan-to-value ratios.
• Affordability calculator: Find out whether you meet mortgage affordability requirements.
• Maximum purchase price calculator: Use this calculator to find out how expensive a property you can mortgage.
• Minimum down payment calculator: Find out how much money you need for your down payment.
• Minimum income calculator: Find out how high an income you need in order to be eligible for the mortgage you want.
• Early termination calculator: Find out whether terminating a fixed-rate mortgage early makes financial sense.
• Rent or buy calculator: Use this calculator to find out whether renting a property or buying a property using a mortgage makes more financial sense.
• Mortgage assistant: Use this mortgage wizard to find the current most affordable mortgage for your needs.

You can find all moneyland.ch mortgage calculators here.

Mortgages which are only offered through online channels have been available in Switzerland for some time. Online mortgages are generally self-service solutions which you apply for over the Internet without any personal consultation. The number of online mortgage offers available is on the increase.

Possible advantages of online mortgages:

• The interest rates of online mortgages are, on average, lower than the published interest rates of conventional mortgages.
• Applying for a basic mortgage online is relatively quick and easy.
• The published interest rates of online mortgages are generally the actual interest rates which you get. That is not the case with many conventional mortgages.

Possible disadvantages of online mortgages:

• You normally have to select and apply for the mortgage on your own without any assistance from a mortgage expert. Making a financial decision of this magnitude requires a good understanding of mortgages.
• You cannot normally negotiate interest rates.
• More specialized mortgages such as mortgages for holiday homes or secondary residences are rarely offered online. The requirements for online mortgages may also be tighter than those of conventional mortgages.

Verdict: Online mortgages are an attractive alternative to conventional mortgages, assuming you have a good understanding of mortgages and how they work. Online mortgages are particularly popular for refinancing existing mortgages.

The moneyland.ch mortgage comparison includes many online mortgage offers. You can learn more about Swiss online mortgages here.

Costs vary between mortgage types and lenders.

Adjustable-rate mortgages are relatively expensive and are only suitable for short-term financing.

With fixed-rate mortgages the rule of thumb is that the longer the mortgage term is, the higher the interest rate will be. The longer the fixed-interest term, the greater the chance that the lender will miss out on interest earnings if interest rates go up in the future. The higher interest rates for longer terms compensate for this risk.

The annual costs are equal to the mortgage interest rate multiplied by the mortgage amount. Example: 1% annual interest on a 500,000-franc mortgage represents a cost of 5000 francs per year.

Money market mortgages are generally an affordable option when the interest environment is constant or lowering.

You can find the exact current interest rates of Swiss mortgages using the interactive mortgage comparison on moneyland.ch.

In addition to interest, supplementary costs and fees may also apply. You can find detailed information about possible mortgage costs here.

It is possible to increase the size of an existing mortgage if you meet affordability and loan-to-value requirements. Increasing a mortgage typically comes at a fee. Depending on the lender, you may pay a fee of 200,250 or 500 francs to increase your mortgage.

Extending the term of an existing mortgage is generally in the lender’s best interest. But in spite of that fact, many lenders charge fees to extend your mortgage’s term. Depending on the lender, extending a mortgage term can cost between 75 and 500 francs.

Many banks slightly discount mortgages for families. However, these family mortgages are often not the most affordable option. In many cases you can find a cheaper standard mortgage which is not advertised as a family mortgage.

Another important factor is that family mortgages normally have additional limitations. In many cases, the more favorable interest rates for family mortgages are only available for initial mortgages on self-occupied homes, and only for certain mortgage types. The maximum mortgage sizes and terms of family mortgages are often limited.

You can find more information about family mortgages here.

Some mortgage lenders offer special favorable interest rates for initial mortgages – the first mortgage you get when you first buy your own home. These are often marketed as start discounts.

Because these special discounted mortgages often come with limitations in terms of the property type, mortgage type and maximum mortgage size and term, standard mortgages from other service providers often work out cheaper.

Yes. Many banks offer special discounted mortgages for energy-efficient properties. However, it is still worth comparing these with standard mortgage offers. In some cases, standard offers from other lenders can be cheaper than special energy-efficient mortgages.

Energy-efficient housing mortgages normally have limitations with regards to the type of property, the mortgage type, the maximum mortgage size and the maximum mortgage term.

You can find more information about energy-efficient housing mortgages here.

Yes. Many banks have special requirements which must be met in order to get mortgages for investment properties. The interest rates of investment property mortgages are often higher than those of self-occupied homes.

You can learn more about mortgages for investment properties in Switzerland here.

Yes. The interest rates of holiday home mortgages are normally higher than those of mortgages for primary residences. The conditions for mortgaging holiday homes are generally tighter. For example, you may have to cover a much larger portion of the purchase out of your own pocket (higher loan-to-value requirements). Many lenders do not offer mortgages for holiday homes at all.

You can find useful information about mortgaging holiday homes here.

The affordability requirements used by Swiss lenders pose a problem for seniors. If your income declines (after retirement, for example), you may no longer meet affordability requirements and the lender may foreclose on your mortgage. If you cannot afford to pay the remaining loan principal, you may be forced to sell your home. A handful of Swiss lenders offer a solution in the form of reverse mortgages. You can find more information about Swiss reverse mortgages here.

Swiss banking guidelines require mortgagors to pay off a maximum of two-thirds of a property’s value within 15 years. Most banks require mortgagors to pay off two-thirds of their properties before they reach retirement age in order to minimize the risk of mortgage default after retirement.

You can find useful information about mortgages and retirement here.

The loan-to-value ratio determines how much of the property purchase can be covered by a mortgage, and how much you have to pay out of your own pocket as a down payment. More precisely, it indicates the size of the mortgage in relation to the collateral value of the property.

The highest loan-to-value ratio allowed by Swiss banking guidelines is 90%. Most banks have a maximum loan-to-value ratio of 80%. That means you have to cover 20% of the property’s collateral value out of your own pocket, while the mortgage covers 80%.

More stringent requirements apply to some mortgage offers. Some lenders have a maximum loan-to-value ratio of 66% for owner-occupied housing. In this case, you have to cover a third of the property’s value out of your own pocket.

It is also possible that a lender may specify less favorable loan-to-value ratio requirements for your specific situation.

The mortgage comparison on moneyland.ch accounts for the maximum loan-to-value ratio for each mortgage. Comparison results are limited based on the specifications you enter in the first step of the comparison.

You can more information about loan-to-value ratios here.

Affordability cost-to-income ratios are often the primary limiting factor in determining whether or not you can get a mortgage. A cost-to-income ratio indicates the costs of maintaining a mortgage and property in relation to your income.

Typically, the maximum cost-to-value ratio accepted by lenders is 33%. That means the annual costs associated with maintaining a mortgage cannot exceed one-third of your income.

Important: The costs accounted for in cost-to-value ratios are not based on the actual interest rate applicable to your mortgage. Instead, they are based on an imputed interest rate. Currently, Swiss lenders generally use an imputed interest rate of 5% per annum.

The annual costs included in cost-to-income calculations also account for mortgage amortization payments, supplemental home ownership costs (heating, power, water, waste, etc.) and property maintenance costs.

You can find more information about affordability requirements here. 

Even if you can afford a mortgage, buying a home is not always the best option. Depending on your situation, renting an apartment or house can be a better financial move.

You can find more information about buying versus renting here

Most Swiss lenders do not accept mortgages from non-residents.

But there are exceptions to this rule. Some lenders will accept mortgages from non-residents if the mortgaged property is located in Switzerland. Some Swiss banks provide mortgages for properties in border regions of neighboring countries, if you earn an income in Switzerland.

If you live abroad but want to buy a Swiss property, or if you work in Switzerland but want to buy a property across the border, ask the lender of your choice whether they offer these services.

Terminating your mortgage ahead of schedule is possible, but usually comes at a high cost. In many cases it is not worth it.

Terminating mortgages is particularly difficult in the case of long-term fixed-rate mortgages. You pay an early-termination penalty, and this can be very high.

You can use the early mortgage termination calculator from moneyland.ch to find out whether terminating a mortgage ahead of schedule makes financial sense.

You can find more information about terminating mortgages ahead of schedule here.

Simply extending your existing mortgage when it reaches the end of its mortgage term is not a good financial move. Even if your mortgage was the cheapest available at the time that you got it, that does not mean that your lender is still the most affordable.

Always take a moment to compare the current interest rates of all mortgage offers to see whether you could save money by moving to a different lender. If you prefer to stick with your current lender, consider negotiating the terms and conditions of your mortgage based on current market rates. Showing your lender cheaper offers from other lenders can give you leverage for negotiations. The lender may agree to match its competitor’s offer rather than lose a good customer.

If you could get a mortgage cheaper with a different lender, take out your mortgage from the other lender.

You can find useful advice for renewing mortgages here.

The mortgage comparison on moneyland.ch accounts for all major Swiss banks and insurance companies including:

AXA, Baloise Bank SoBa, Banca Popolare di Sondrio (Suisse), Bank Avera, Crédit Agricole next bank, Credit Suisse, Generali, Glarner Kantonalbank, Graubündner Kantonalbank, Hypothekarbank Lenzburg, Migros Bank, PostFinance, Raiffeisen Schweiz Genossenschaft, Regiobank Solothurn, St.Galler Kantonalbank, Swiss Life, Valiant Bank, Bank WIR, Zuger Kantonalbank, Zürcher Kantonalbank, Luzerner Kantonalbank, Appenzeller Kantonalbank, Nidwaldner Kantonalbank, Basellandschaftliche Kantonalbank, Freiburger Kantonalbank, Obwaldner Kantonalbank, Schwyzer Kantonalbank, Urner Kantonalbank, AEK Bank, Bank BSU, Clientis BS Bank Schaffhausen, Bank EKI.

Online mortgages: Avantage Service (Banque Cantonale de Genève BCGE), Hypomat, Swissquote.