Fixed-Rate Mortgage

Fixed rate mortgages (FRMs) in Switzerland come with a fixed interest rate which applies to the full mortgage term, and is agreed to when the mortgage is issued.

Most banks and insurance companies offer fixed rate mortgage terms of between 2 and 10 years. A smaller number of lenders provide mortgage terms spanning as little as 1 year or as much as 20 years. Interest rates for FRMs are included in the moneyland.ch mortage comparison tool, and can be sorted by mortgage term length.

When interest rates are negative, you will get a higher interest rate for mortgages with long terms, compared to interest rates for shorter term mortgages. When banks and insurers expect interest rates to rise sharply in the not-too-distant future, interest rates for long-term mortgages rise to compensate for possible rate changes (rising interest rate curve). However, the interest rate curve may also drop or move sideways over time.

More information:
Swiss mortgage rates compared
What is a libor mortgage?
Variable mortgages in Switzerland
What is a variable mortgage?