Types of mortgages in Switzerland

In Switzerland, choosing a type of mortgage is about more than comparing the interest rate available today. A fixed-rate mortgage locks in the interest cost for an agreed term, while a SARON mortgage follows money-market developments more closely and leaves the borrower more exposed to changes in interest rates.

A combined mortgage can divide the financing between different models or maturities.

For a new build or major conversion, financing may also initially take the form of a construction mortgage before being consolidated into long-term mortgage financing.

The most appropriate solution therefore depends on how long you expect to keep the property, your budget’s ability to absorb higher interest costs, the likelihood of a sale or early repayment, and the amount of flexibility you require.

It is also important to distinguish the interest-rate model from the financing structure: splitting a mortgage into several tranches can reduce certain risks, but different maturity dates may also limit your freedom to switch lenders later.

The articles below examine each solution separately so that you can compare how they work, their advantages and constraints, and the situations in which they are most appropriate.