Renewing your mortgage: planning ahead and comparing offers

In Switzerland, renewing your mortgage is a key moment for your finances. As the maturity date approaches, every month counts: waiting until the last minute can lead you to accept less favourable conditions, pay substantial early-exit penalties or miss attractive market opportunities. By contrast, planning ahead and working with an independent mortgage broker often makes it possible to obtain several lender offers more quickly and to negotiate overall better terms.

In this article, we explain how to renew your mortgage in a structured way: timeline to follow, possible options (extending a mortgage, replacing the mortgage, refinancing the mortgage, taking over an existing mortgage), the impact of new regulatory rules and concrete numerical examples for a property worth CHF 800’000.–.

Mortgage renewal in Switzerland: why timing really matters

An interest-rate market in constant flux

Since 2022, Switzerland has experienced a phase of rising and then gradually falling key interest rates set by the Swiss National Bank (SNB). Since 20 June 2025, the SNB policy rate has stood at 0.00%. Forecasts published at the end of 2025 indicate that this level could be maintained at least until the end of 2026, depending on how inflation and the economic cycle evolve. For property owners, this translates into an interest-rate environment that remains moderate but can react quickly to changes in the economic or geopolitical context.

In such an environment, the moment you choose to negotiate your mortgage renewal has a direct impact on the total cost of your debt. Renewing several months or even years before maturity can allow you to lock in an attractive fixed rate, whereas postponing the decision may expose you to rising interest rates or a reduced range of offers from certain lenders.

The concrete risks of renewing too late

Many borrowers wait for their bank’s letter a few weeks before maturity to start dealing with the renewal of their mortgage. In Switzerland, this approach can create several issues:

• Less room for negotiation: if the maturity date is very close, the threat of switching banks loses credibility, because the time available to set up alternative financing is short.
• Possible early-exit penalties: in the event of early termination of a fixed-rate mortgage or a change of bank outside the contractual notice periods, early-repayment penalties may be charged.
• Stress and rushed decisions: a tight deadline limits the time you have to compare offers, analyse cantonal tax implications and take into account renovation plans or changes in your professional situation.

Conversely, planning ahead allows you to treat mortgage renewal as a strategic project rather than a mere administrative formality.

Planning ahead: 12 to 24 months before maturity

Specialist guides and many Swiss banks recommend starting to think about renewal between 12 and 24 months before your mortgage matures. This time frame offers several advantages:

• Monitoring the trend in interest rates and bank margins over several quarters.
• Reviewing your overall situation calmly (income, retirement, estate planning, potential sale or partial letting of the property, etc.).
• Testing different scenarios: extending a mortgage as it is, reducing the amount, refinancing a mortgage by changing the model (fixed, variable, mixed) or switching to another lender.

A professional mortgage broker can structure this process and come back to you with a quantified comparison of several institutions, taking into account cantonal tax rules and ancillary costs.

Understanding the key concepts of mortgage renewal

Renewal, extension, replacement, refinancing

In everyday language, several expressions are used to describe situations that can in fact be quite different. It is important to clarify these concepts from the outset:

• Mortgage renewal or renewing a mortgage: the process of entering into a new mortgage agreement when the current mortgage matures, either with the same bank or with another institution.
• Extending a mortgage: renewing the contract with the same institution, generally for the same amount, but with new terms (rate, duration, rate model).
• Replacing the mortgage: terminating the existing contract and replacing it with a new one, sometimes with a different bank. This may give rise to early-repayment penalties if it is done before maturity.
• Mortgage refinancing or refinancing a mortgage: a broad term used for restructuring the debt (for example by consolidating several tranches, changing the rate model or changing lender).
• Taking over a mortgage: transferring an existing mortgage to a new buyer or a new bank, often in the context of selling a property or changing institution.

In all cases, mortgage renewal is governed by Swiss law on real-estate collateral and by self-regulatory standards recognised by FINMA, which set minimum requirements for own funds (generally at least 20% of the purchase price) and amortisation.

Current legal and regulatory framework in Switzerland

Mortgage financing takes place within a specific legal and prudential environment:

• Swiss Civil Code: governs real-estate collateral, mortgages and mortgage certificates (Art. 793 and 842 SCC in particular), which serve as security for the bank on the pledged property.
• Financial Services Act (FinSA): in force since 1 January 2020, it aims to protect clients of financial-services providers by imposing information, documentation and transparency obligations.
• Self-regulation by the banking sector: the Swiss Bankers Association (SBA) has issued guidelines on minimum requirements for mortgage financing (equity and amortisation). FINMA has recognised these guidelines as minimum standards since 1 January 2025. Banks remain free to apply stricter criteria.

These rules have a direct impact on mortgage renewal: even if you already own your home, the bank may reassess your financial capacity, your equity and the quality of the property if there are significant changes in your situation.

Equity requirements and affordability

For a primary residence, market practice based on the SBA standards generally requires at least 20% equity, part of which must come from “hard” savings (cash, savings, pillar 3a). Maximum financing therefore usually represents around 80% of the property’s value. For investment properties or second homes, the required equity share is often higher.

When you renew your mortgage, especially if you want to replace it or proceed with mortgage refinancing, the bank will also reassess your affordability: theoretical expenses (interest calculated at a stress rate, amortisation and estimated maintenance costs) should generally not exceed around one-third of your gross income.

When should you renew your mortgage in Switzerland?

Recommended timeline

Several phases can be distinguished when preparing for renewal:

• 24 to 18 months before maturity: first assessment of your situation (life projects, income, retirement, possible sale or conversion of the property). Gathering information on rate models (fixed, variable, variable) and on cantonal tax rules.
• 18 to 12 months before: contacting a mortgage broker and/or several institutions. Running scenario simulations and identifying the banks that already agree to lock in a rate in advance.
• 12 to 6 months before: active negotiation of terms. Comparing the option of extending the mortgage with your current bank with the option of changing lender via a mortgage take-over.
• 6 months before maturity: finalising your choices, compiling the documentation, setting up the contracts. This period makes it possible to absorb any administrative or legal delays.

The earlier you start, the more you can use mortgage renewal as a lever for financial optimisation rather than dealing with it as an emergency.

The broker’s role in managing timing

A professional mortgage broker is familiar with the internal policies of many banks, insurance companies and pension funds. They know:

• Which institutions are willing to lock in an interest rate up to 24 or 36 months before maturity.
• Under which conditions a mortgage take-over is attractive (for example to retain a historically low rate on part of the debt in the event of a sale or refinancing).
• How to negotiate any early-repayment penalties if you wish to replace your mortgage before maturity.

Their involvement increases the likelihood of obtaining several offers in parallel within short time frames, without you having to organise every contact and follow-up with lenders yourself.

Extending a mortgage or replacing the mortgage: what are the options?

Simple extension with the same bank

The most straightforward solution is to extend your mortgage with your current institution. The advantages are:

• Limited administrative formalities.
• No new costs for the mortgage certificate if the amount remains the same.
• Time savings if the relationship is long-standing and the file is well known.

However, your bank may not always offer the most attractive terms on the market. Without an external comparison, it is difficult to assess the gap between the internal proposal and what other lenders would be prepared to grant you.

Replacing the mortgage with a more suitable contract

Replacing the mortgage means terminating your current contract (on maturity or earlier) and entering into a new one, with the same lender or another institution. This option is relevant if:

• your needs have changed (for example higher income, renovation plans, transition to retirement).
• you would like to move from a fixed rate to a variable rate (SARON) or vice versa.
• you want to adjust the term of your tranches so that it better matches your objectives (faster repayment, alignment with a pillar 3a maturity date, etc.).

A mortgage broker can simulate the impact of these adjustments on your annual budget and tax position, and compare several mortgage-renewal solutions.

Changing bank: refinancing and mortgage take-over

Mortgage refinancing with a change of bank involves a new credit assessment and the creation of a new mortgage certificate or the assignment of the existing certificate. Depending on the canton, fees are payable for the land register and notarisation. In some cases, a simple mortgage take-over is possible, allowing the existing contract (or part of it) to be taken over on new terms negotiated with the new lender.

This can be very attractive if your current bank is not competitive or if another institution values your profile more favourably (stable income, low overall debt, high property value, etc.).

Mortgage renewal costs

Order of magnitude of acquisition costs

When purchasing a property or changing bank and creating a new mortgage certificate, you need to factor in the acquisition costs (property transfer tax, land-register fees, mortgage-certificate fees, notary fees). In Switzerland, these costs often amount to between 3% and 4% of the purchase price, but they vary significantly from one canton to another.

By way of illustration:

• Canton of Vaud: transfer tax of up to 3.3% of the sale price, plus notary and registration fees.
• Canton of Geneva: transfer tax of 3% of the sale price, with total costs (registration duties, land register, notary) often between 3% and 5% of the property price.
• Cantons with reduced or no transfer taxes: some cantons (for example Schwyz) do not levy transfer tax on ordinary transactions, which reduces acquisition costs.

These cantonal differences explain why, when renewing your mortgage and refinancing with a change of bank, it is important to include these one-off costs in your overall comparison.

When acquisition costs influence the decision

If you are considering replacing your mortgage by switching lender, the interest-rate saving must be weighed against the notary and land-register fees, as well as the costs linked to the mortgage certificate. In some high-tax cantons, it may be more attractive to extend the mortgage with your current bank, especially for modest amounts or short durations. A broker will help you quantify this point objectively.

Numerical examples: renewing a mortgage for a property worth CHF 800’000.–

The examples below are purely indicative. They are based on an owner-occupied residential property in Switzerland worth CHF 800’000.–, with no amortisation, an indicative mortgage interest rate of 2% per year and acquisition costs estimated at 3% of the price (average value for several cantons). In practice, the amounts may differ depending on the canton, the lender, the outcome of negotiations and your tax situation.

Scenario 1: 20% down payment (usual minimum equity)

Property price	Down payment	Mortgage amount	Acquisition costs (notary, transfer tax, etc.)	Annual interest on the debt (rate 2%)	Annual maintenance costs (1% of the price)
CHF 800’000.–	20% (CHF 160’000.–)	CHF 640’000.–	Around CHF 24’000.–	CHF 12’800.–	CHF 8’000.–

In this scenario, you use external financing to the maximum (80%). This structure is very common in Switzerland. When renewing the mortgage, the bank checks whether your financial situation still enables you to cover these theoretical costs, including at a stress rate higher than the current interest rate.

Scenario 2: 30% down payment

Property price	Down payment	Mortgage amount	Acquisition costs (notary, transfer tax, etc.)	Annual interest on the debt (rate 2%)	Annual maintenance costs (1% of the price)
CHF 800’000.–	30% (CHF 240’000.–)	CHF 560’000.–	Around CHF 24’000.–	CHF 11’200.–	CHF 8’000.–

With 30% equity, the mortgage debt is lower. When renewing the mortgage, some banks may offer more favourable conditions to clients with a lower loan-to-value ratio, as the default risk is reduced.

Scenario 3: 40% down payment

Property price	Down payment	Mortgage amount	Acquisition costs (notary, transfer tax, etc.)	Annual interest on the debt (rate 2%)	Annual maintenance costs (1% of the price)
CHF 800’000.–	40% (CHF 320’000.–)	CHF 480’000.–	Around CHF 24’000.–	CHF 9’600.–	CHF 8’000.–

With 40% equity, the interest burden falls significantly. At the time of mortgage renewal, this level of equity strengthens your bargaining position and may enable you to negotiate lower margins or more flexible conditions (for example in terms of duration or options for indirect amortisation).

Please note: the amounts above are estimates. They do not constitute an offer, a recommendation or a rate guarantee. The actual figures depend on the canton, your risk profile, the financial institutions and market conditions at the time of renewal.

Why work with a mortgage broker

Access to several lenders and time savings

The main advantage of a professional mortgage broker is that, through a single point of contact, they provide access to a broad network of banks, insurance companies and pension funds. This makes it possible to:

• obtain several competing offers for your mortgage renewal in a short period of time.
• save time on gathering documents, preparing the file and managing technical discussions.
• benefit from independent expertise when choosing between extending, replacing or refinancing.

For you, this means fewer administrative steps and a clearer view of the options available – which is particularly valuable as the maturity date approaches.

Optimising conditions and debt structure

A professional broker does more than just ask for a rate. They can help you:

• choose between a fixed-rate, SARON-based or mixed-rate model (combined mortgage).
• stagger the different tranches so that interest-rate risk is spread over several maturity dates.
• combine direct and indirect amortisation in line with your tax position and retirement horizon.

In the context of mortgage renewal, this structural optimisation can generate significant savings over the full term, over and above the nominal interest rate alone.

Support in an increasingly demanding regulatory environment

With the new rules on mortgage financing coming into force from 2025 onwards, institutions are applying increasingly fine-grained criteria. A broker will help you:

• understand the equity and amortisation requirements that apply to your situation.
• prepare a complete file from the outset so as to avoid repeated requests for information and additional delays.
• identify the lenders whose internal policies are compatible with your profile (self-employed, employee, pensioner, investor, etc.).

Their support is particularly valuable if you wish to refinance a mortgage when changing bank, or to add a renovation or buy-to-let investment project at the time of renewal.

Common mistakes to avoid when renewing your mortgage

Waiting for the bank’s letter before taking action

The first mistake is to treat mortgage renewal as a mere formality. If you only start the process when you receive your bank’s proposal, you may not have enough time to make lenders compete or to adjust the structure of your financing.

Focusing only on the nominal rate

A slightly lower rate does not always mean a lower overall cost. You also need to take into account:

• One-off costs (notary, land register, mortgage certificate) if you change bank.
• Any early-repayment penalties if you exit a fixed-rate mortgage before maturity.
• Amortisation terms and the flexibility available if you make a partial early repayment.

Ignoring cantonal tax rules

The tax deductibility of mortgage interest, the imputed rental value and transfer taxes are determined at cantonal level. The same mortgage-renewal decision can have different tax consequences in Geneva, Vaud or Zurich. A comprehensive simulation allows you to measure these effects.

Not aligning the strategy with your life situation

A couple nearing retirement, a self-employed person with fluctuating income and a property investor will not have the same needs. Mortgage renewal is an opportunity to align the term, rate model and amount of your mortgage with your plans (retirement, children’s education, estate planning, partial sale, etc.).

Acting without a long-term perspective

It is also risky to make a decision based solely on the current interest-rate environment, without asking how your affordability would change if rates were to rise in future. The stress tests used by banks (stress interest rate) provide a useful benchmark to help you remain cautious.

Frequently asked questions about mortgage renewal (FAQ)

What should you do now?

In Switzerland, mortgage renewal should never be rushed. It is a key opportunity to:

• review the structure of your debt and adapt it to your plans.
• optimise your interest costs while complying with prudential and tax constraints.
• put several institutions in competition so as to obtain terms that are consistent with your profile.

Starting the process 12–24 months before maturity and working with a broker in your region significantly increases your chances of turning renewal into a genuine financial opportunity. You will be able to carry out a comprehensive analysis of your situation (income, assets, tax position, projects) and obtain offers from several institutions. A one-to-one meeting will help you clarify your options and confidently decide on the best strategy for your property assets.

Before making a decision on mortgage renewal, refinancing or a mortgage take-over, you should consult qualified advisers (bank, broker, financial adviser, notary, tax specialist) and consider your personal situation, your risk profile and your cantonal tax environment. Only the written offers and terms issued by financial institutions are binding.

Disclaimer: This article is for information purposes only and is based on the current state of the market, the legal framework and banking practices. It does not constitute legal or tax advice, nor a personalised recommendation in relation to financing. The numerical examples, interest rates, interest amounts, fee levels and scenarios presented are indicative and may differ significantly from the terms that would actually be offered to you by a financial institution.