Choosing the right mortgage is the second most important decision when buying real estate - after property itself. There are two main types to choose from in Switzerland: fixed-rate mortgage and SARON mortgage. This comparison helps you in the decision.
Current interest rates (as of April 2026)
| Mortgage Type | Guideline interest rate | Bandwidth | trend |
|---|---|---|---|
| SARON (variable) | 1.25% | 1.10-1.45% | Stable |
| Fixed-rate mortgage 2 years | 1.40% | 1.25-1.60% | Slightly rising |
| Fixed-rate mortgage 5 years | 1.65% | 1.50-1.85% | Stable |
| Fixed-rate mortgage 10 years | 1.95% | 1.80-2.15% | Stable |
| Fixed-rate mortgage 15 years | 2.20% | 2.00-2.45% | Stable |
Guide interest rates as a guide. Your personal interest rate depends on your credit rating, loan to value and provider off.
Fixed-rate mortgage: planning security
With a fixed-rate mortgage, the interest rate is fixed for the entire term.
Advantages
- Full planning security - monthly burden is fixed
- Protection against rising interest rates
- Budget security for families
- No bad surprises
Disadvantages
- Higher interest rates than SARON (currently +0.40-0.70%)
- Early termination compensation for early termination (often CHF 10,000-50,000+)
- No profit if interest rates fall
- Long-term commitment to a provider
SARON mortgage: flexibility and interest savings
The SARON mortgage is based on the Swiss Average Rate Overnight — the SNB’s reference interest rate. The interest is adjusted regularly (daily to quarterly).
Advantages
- Historically cheaper than fixed-rate mortgages (on average 0.5-1.0% less)
- Benefit from falling interest rates (immediately)
- No early payment compensation (short-term commitment)
- Flexible: Can be changed to a fixed-rate mortgage at any time
Disadvantages
- Interest rate risk: Rising interest rates increase the monthly burden
- No budget security - fluctuations possible
- Nervous strength required when interest rates rise
- Not suitable for limited portability
Calculation example: 10-year comparison
Assumption: CHF 800,000 mortgage, current SARON 1.25%, fixed 10Y 1.95%
| scenario | Fixed-rate mortgage (10Y) | SARON | difference |
|---|---|---|---|
| Interest rates remain stable | CHF 156,000 | CHF 100,000 | CHF 56,000 saved (SARON) |
| SARON rises to 2.5% | CHF 156,000 | CHF 150,000 | CHF 6,000 saved (SARON) |
| SARON rises to 3.5% | CHF 156,000 | CHF 190,000 | CHF 34,000 saved (fixed) |
Decision support: what suits you?
Choose a fixed-rate mortgage if:
- Budget security is more important than savings
- Affordability is tight (little buffer if interest rates rise)
- You want to keep the property for the long term (10+ years)
- You want to sleep peacefully
Choose SARON if:
- You have a financial buffer (20%+ reserve if interest rates double)
- You may sell in 3-5 years (no expiration date)
- You want to benefit from historically low interest rates
- You actively follow interest rate developments
Tranche strategy: The best of both worlds
Many advisors recommend dividing the mortgage into several tranches:
- 50% fixed-rate mortgage (security for the basis)
- 50% SARON (flexibility and savings)
- Different terms prevent “cluster risk” when renewing
Financing advice
We help you find the optimal mortgage strategy for your property - independently and free of charge.
Request adviceAs of April 2026. Guide interest rates as a guide - obtain binding offers from your bank.