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 (the gap varies)
- 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 reference interest rate for the Swiss franc administered by SIX. It is not the same as the policy rate set by the SNB. How and how often the interest is adjusted is set out in the contract with the bank.
Advantages
- Historically often cheaper than a fixed-rate mortgage; the gap varies and is not guaranteed
- Benefit from falling interest rates (promptly, depending on the contract)
- Depending on the contract, usually no early repayment compensation (short-term commitment)
- Flexible: switching to a fixed-rate mortgage is possible depending on contract and bank
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, assumed 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.