Do you need advice tailored to your specific situation? The experts at HypoPlus compare the mortgage deals offered by a range of lenders and establish the best solution for your needs.

Personal consultation

BAHB-Standard

The mortgage rate determines the cost of a mortgage. How high it is depends on the market, the mortgage type and the borrower's credit history. 

The mortgage rate refers to the rate of interest charged to cover the cost of taking out a mortgage. 
It must be paid to the lender at regular intervals (usually monthly).
The mortgage rate is influenced by various factors. How high it is depends largely on the following:
<ul class="plain">
 <li>Mortgage type (<a href="/hypotheken/info/glossar/libor-hypothek">Libor mortgage</a>,&nbsp;<a href="/hypotheken/info/glossar/festhypothek">fixed-rate mortgage</a>&nbsp;or&nbsp;<a href="/hypotheken/info/glossar/variable-hypothek">variable-rate mortgage</a>)</li>
 <li>Lender (compare&nbsp;<a href="/hypotheken/zinssatz/vergleich">current rates by lender</a>)</li>
 <li>Product (find out about&nbsp;<a href="/hypotheken/zinssatz/laufzeiten">benchmark interest rates</a>)</li>
 <li>Credit rating and <a href="/hypotheken/info/glossar/belehnung">loan-to-value ratio</a></li>
 <li>Condition and location of the property</li>
 <li>Market conditions (the higher or lower the interest rate on the capital market, the higher or lower the benchmark interest rates set by the banks)</li>
</ul>
The bank then adds a margin to the benchmark interest rate. The benchmark interest rate plus the margin equals the interest rate the bank will actually charge for the chosen mortgage. The margin is calculated on an individual basis. The higher the bank's assessment of the mortgage borrower's credit standing and the property (location, condition), the smaller the margin and therefore the lower the actual mortgage rate.
The interest rate for a <a shape="rect" href="/hypotheken/info/glossar/erste-und-zweite-hypothek">second mortgage</a> (loan-to-value ratio starting at 66 per cent) is generally higher than that for a first mortgage (loan-to-value ratio up to 65&nbsp;per cent). Higher rates also apply to holiday homes, second properties and commercial and industrial buildings.
<h3>Mortgage rate trends and market conditions</h3>
In our <a href="/hypotheken/services/qehypobaro">Mortgage Barometer</a>, produced quarterly by the mortgage experts at comparis.ch, you can find detailed information on mortgage rate trends in recent years up to the last quarter. What economic events influence the current interest rate situation? Which mortgage terms are the most popular? Find out <a href="/hypotheken/services/qehypobaro">here</a>&nbsp;about current market conditions.
<img src="/-/media/images/news/hypotheken/mortgage rates.png?la=en" alt="Fixed mortgage rate history Switzerland" width="706" height="445">
&nbsp;
<h3 class="headline highlighted">Rate comparison by mortgage term</h3>
Compare different fixed mortgage rates in the interactive <a href="/hypotheken/zinssatz/zinsentwicklung">mortgage rate trends</a> chart created by comparis.ch. This chart shows you how mortgage rates have changed over the last few years. It allows you to compare the rates for up to three different mortgage terms. Interest rates for shorter terms are usually lower than those for long-term mortgages.
<h3 class="headline highlighted">Rate comparison by lender</h3>
Our <a href="/hypotheken/zinssatz/zinsentwicklung?providerTabActive=true">mortgage chart</a> depicts not only how the interest rates have changed for the various terms, but also how they have changed for the individual Swiss lenders. When you select a mortgage term, the interest rate curve of the different lenders is displayed in the chart. Use the interactive tools to change the time period or view the actual interest rate on a specific date.
 
<div><a href="/hypotheken/default" class="icon-right strong button" data-ct="true" data-ct-id="hypotheken 2nd Level" data-ct-area="Hypo2ndLevel" data-ct-type="Click" data-ct-subtype="ButtonToHome" data-role="button" data-theme="p">Go to overview</a></div>

Mortgage rate explained – comparis.ch

EntryTitle

hypothekarzins

Tell a friend

Default

recommendation

facebook-share

facebook

twitter

google-share

google

Compare mortgages in Switzerland. Find the best mortgage deal for your requirements. Calculate individual mortgage rates online and request an offer.

Compare mortgages and save on interest

Find the best mortgage for your needs. Compare mortgage rates easily with comparis.ch and choose the best deal.

Refinancing refers to the renegotiation of an existing mortgage prior to or upon maturity with the current or new provider.
Learn more about the topic of refinancing in our Mortgage Guide.&nbsp;<a href="/hypotheken/hyporatgeber/abloesung">Continue</a>

Refinancing

abloesung

Interest rates for mortgages vary strongly. It pays off to compare the different bank offers. Benefit from the Mortgage Market and the mortgage interest overview by comparis.ch

1.&nbsp;&nbsp;&nbsp;&nbsp; General terms and conditions 
By using the Mortgage Market you are making a contract between yourself as a private User (hereinafter &ldquo;the User&rdquo;) and comparis.ch AG, Stampfenbachstr. 48, 8006 Zurich (hereinafter &ldquo;comparis.ch&rdquo;). If you access this platform for another person, you act as a proxy in the name of and on behalf of the private individual concerned (see Section 5 below for more information); by making the contract for this person, you also confirm that you agree to the following terms and conditions where these apply to you. A separate contract shall exist for every mortgage application made on the platform and accepted by comparis.ch and the following terms and conditions shall apply to each:
2.&nbsp;&nbsp;&nbsp;&nbsp; Services supplied by comparis.ch 
comparis.ch&rsquo;s services include the provision of the &ldquo;Mortgage Market&rdquo; online platform (&ldquo;the Platform&rdquo;) for the exchange of mortgage applications submitted by the User and any resulting mortgage offers. Mortgage applications can be accepted only for owner-occupied or rental properties within the borders of Switzerland.
comparis.ch will use the Platform to pass on the mortgage application submitted by the User to selected mortgage providers linked to the Platform ("the Providers"), who will be invited to offer a quotation. comparis.ch will then provide the User with access to such offers via the Platform. 
Mortgage applications are independently examined and processed by Providers, who also decide if an application fulfils their criteria; any and all offers are made autonomously by the Providers. However, if a User&rsquo;s properly completed mortgage application attracts no offers from any of the Providers, comparis.ch will refund the flat fee paid by the User as set out in Section 3.
Once the Providers&rsquo; offers have been forwarded to the User, all further contact between the Providers and the User shall be direct. In particular, any contract made in respect of a mortgage shall exist exclusively between the User and the relevant Provider without the involvement of comparis.ch. Offers shall as a rule be time-limited. As the provider of the Platform only, comparis.ch does not scrutinize offers, provides no warranty in respect of any offer and shall accept no liability for the accuracy, content, suitability or market conformity of any offer. (Apart from the information required to use the Mortgage Market, comparis.ch provides no individual advice for Users.) Any questions the User may have in respect of an offer supplied by a Provider should be directed to the relevant Provider. In some cases, a Provider may require further details or documentation or impose other conditions for the completion of a mortgage contract.
comparis.ch uses modern infrastructure and software solutions but cannot guarantee the Platform&rsquo;s continuous availability in its unaltered form. Interruptions of service due to maintenance or other causes may occur, and comparis.ch reserves the right to make alterations to the Platform and its functions or to alter the terms and conditions from time to time without prior notice. comparis.ch may also terminate the Platform in whole or in part. In such a case, the flat fee set out in Section 3 will also be refunded to any User whose correctly completed mortgage application has attracted no offers from any Providers.
3.&nbsp;&nbsp;&nbsp;&nbsp; The comparis.ch fee structure 
For the submission of each mortgage application (including repeat submissions), the User shall pay comparis.ch the flat fee set out on the Platform&rsquo;s payment page (the page preceding final confirmation), irrespective of the number and nature of the offers received and irrespective of the content of the application. The user shall pay the fee in advance as instructed on the website, using an authorised credit card or another means of payment acceptable to comparis.ch; comparis.ch undertakes to refund the flat fee paid by the User should a properly completed mortgage application unexpectedly fail to attract any offers (a state of affairs that can be determined only after a number of working days). 
4.&nbsp;&nbsp;&nbsp;&nbsp; Data processing 
In addition to the provisions accessible via the &ldquo;Data Protection&rdquo; link on the comparis.ch website, the following shall apply to all data supplied by the User in respect of each mortgage application, any offers received and general use of the Platform:
The User agrees that as part of its normal running of the Platform, comparis.ch shall be allowed access to and shall handle any mortgage application made or offers received. The User further acknowledges that comparis.ch can accept no legal liability for the use made of the User&rsquo;s data by the Providers and is thus unable to issue any undertakings in this respect. Any such use is the sole responsibility of the Providers, although as Swiss-based companies their handling of the User&rsquo;s data is fully subject to Swiss data-protection legislation and, in the case of banks, to banking privacy.
5.&nbsp;&nbsp;&nbsp;&nbsp; Authorisation 
The User hereby asserts and confirms that the information supplied on the application form is correct and that he/she filled out the form him-/herself, or, where a third party is representing the person detailed on the form, the third party hereby asserts and confirms that he/she is authorised to make this contract and submit this application on behalf of the person detailed on the form and that the person is prepared to fulfil the terms of the contract. Where the User supplies or makes use of data relating to third parties on the application form or elsewhere, he/she confirms that the relevant permissions have been granted in advance and accepts all liability in this respect. In the event of misuse of data, the User shall entirely indemnify comparis.ch in respect of its costs or any claims from third parties. 
It is the responsibility of the User to ensure that data used to access the Platform (especially the password) remain secret and cannot be used by third parties. The User shall be personally liable for the consequences of any misuse and must accept personal responsibility for all activity undertaken using his/her access code.
6.&nbsp;&nbsp;&nbsp;&nbsp; Limitations of liability and warranty 
comparis.ch assumes liability for unlawful intent and gross negligence but in no other circumstances, particularly not in respect of any third parties consulted or other intermediaries, direct or indirect damages, incidental damages (including consequential damages), loss of data or delays. This shall apply even if comparis.ch has been advised of the possibility of such damages. 
In addition, comparis.ch makes no guarantees in respect of its offers or the results of its work and services, including the accuracy and completeness of the information contained in the website or in any other documentation. Use of the website and other documentation and the information contained therein is entirely at the User&rsquo;s own risk, particularly in respect of the offers made by individual Providers.
7.&nbsp;&nbsp;&nbsp;&nbsp; Other provisions 
The contractual relationship between comparis.ch and the User shall be subject to Swiss law. No alterations or additions to these terms and conditions shall have effect unless agreed in writing.
comparis.ch reserves the right to terminate this contract at any time and to exclude the User from further use of the Mortgage Market platform. The Mortgage Market is for exclusively private use and may be used only by private individuals (or their representatives).
In addition to these terms and conditions, the provisions in respect of data protection and &ldquo;Legal Information&rdquo; shall also apply to the relationship between comparis.ch and the User.

General Terms and Conditions (GTC) applicable for the utilisation of the Mortgage Market

The second mortgage must often be amortized before you reach retirement age. What is the best amortization strategy?


<h3>Definition</h3>
Amortization basically means paying off a mortgage in instalments. It can be direct or indirect. Banks often make it compulsory to amortize part of the mortgage.
<h3>Mandatory amortization&nbsp;</h3>
Banks usually require you to repay a part of your mortgage within a particular period or by the time you retire at the latest. Borrowers can choose between direct and indirect amortization.&nbsp;
<ul class="plain">
 <li>Direct amortization 
 You repay the mortgage directly to the lender. This means that as you amortize (repay) the mortgage, you reduce the mortgage debt and the amount of mortgage interest due at the same time.</li>
</ul>
<ul class="plain">
 <li>Indirect amortization 
 You repay the mortgage indirectly by accumulating pension assets (second (occupational pension) or third pillar) for this purpose. The mortgage amount remains the same during the entire term and can be amortized at the end of it using the accumulated pension savings. The original mortgage amount therefore remains unchanged and the tax-deductible interest stays consistently high.</li>
</ul>

<h3>Amortization of the remaining mortgage</h3>
The question also arises of whether it is worth amortizing the remaining mortgage debt as well as the mandatory part. When considering your repayment strategy, you should bear in mind that the higher the mortgage, the more likely a lender is to demand repayments at short notice if house prices fall or your financial situation worsens. In extreme cases, the bank can even force the sale of the property in a foreclosure auction in order to recover the debt.

Amortization – repayment of a mortgage [strategies and tips]

amortisation

Interest rates for mortgages vary strongly. A comparison of the different bank offers is worthwhile. Benefit from the Mortgage Market and the mortgage interest rate overview by comparis.ch. 

Year of construction of the building. If a total renovation has been carried out since, please enter the year of the renovation.

Year of construction

baujahr

Interest rates for building loans vary strongly. A comparison of various bank offers is worthwhile. Benefit from the Mortgage Market and the Mortgage Rate Overview by comparis.ch.

Building loan is a real security secured as an overdraft, which serves the financing of a new building or reconstruction. 
 
 
 
 
 
 
 
 
 
 At the beginning of the building phase, the building loan is meant for the payment of the craftsmen bills. After completion, the building loan is transformed into the favoured mortgage (consolidation).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 The building loan interest rate depends on the interest rate for the 1st mortgage. Additionally, annual credit commissions of approx. 1% and surveillance charges of approx. 2 - 3% of the building loan apply.

Buidling loan

baukredit

If a property's purchase price is CHF 1,000,000 and the mortgage amount is CHF 650,000, the loan-to-value ratio is 65%.

The loan-to-value ratio is the percentage of a property's value that is financed by a mortgage. This percentage is also used to <a href="https://en.comparis.ch/hypotheken/info/glossar/tragbarkeit">calculate the affordability</a> of a mortgage.
&nbsp;
<h2>Example calculation of the loan-to-value ratio</h2>

<div>
<table>
 <tbody>
 <tr>
 <td>Value of property</td>
 <td>CHF&nbsp;1,000,000</td>
 </tr>
 <tr>
 <td>Mortgage</td>
 <td>CHF&nbsp;650,000</td>
 </tr>
 <tr>
 <td>Loan-to-value ratio</td>
 <td>65%</td>
 </tr>
 </tbody>
</table>
<a variant="secondary" mb="3rem" href="/hypotheken/hypothekenrechner">Calculate affordability and loan-to-value ratio</a></div>
&nbsp;
<a href="https://en.comparis.ch/hypotheken/hyporatgeber/belehnung-tragbarkeit">More information about the loan-to-value ratio and affordability</a>

Loan-to-value ratio

belehnung

Copy of entries in the debt register. Available from the Debt Enforcement Office (Betreibungsamt)

Extract from the debt register

betreibungsregisterauszug

CAP is the interest rate ceiling or hedge for a LIBOR mortgage, also known as a money market mortgage. It functions as a type of insurance.

CAP is an interest rate ceiling or hedge for a <a href="/hypotheken/info/glossar/libor-hypothek">LIBOR mortgage</a>, also known as a&nbsp;<a href="/hypotheken/info/glossar/geldmarkthypothek">money market mortgage</a>. It functions as a type of insurance. If you take out a LIBOR mortgage with an interest rate ceiling, the interest rate may not exceed this predefined limit during the agreed term. 
Because of the associated additional costs, it usually only makes sense to take out a LIBOR mortgage with a CAP for larger mortgage amounts of CHF 2 million or more. For example, a LIBOR mortgage with a CAP for 3 years features the standard LIBOR interest rate, the bank's margin as well as the interest rate ceiling, plus you need to remember that there is a risk of the interest rate increasing up to that ceiling. Once you have received your mortgage offer from the lender, you are highly recommended to compare it with the current rates available for fixed-rate mortgages. A 3-year fixed-rate mortgage does not usually differ much, if at all. You can find the latest interest rates here: <a href="/hypotheken/zinssatz/vergleich?term=3">Compare interest rates</a>.&nbsp;&nbsp;
Another name for CAP: ceiling

CAP or interest rate ceiling – comparis.ch

cap-zinskostenbegrenzung

Interest rates for mortgages vary strongly. A comparison of the various bank offers is worthwhile. Benefit from the Mortgage Market and the Mortgage Rate Overveiw by comparis.ch.

In an annual survey, comparis.ch determines the customer satisfaction with the financial institutions. Among other things, the comparis.ch users are asked to rate their experiences with their own financial institution. The survey takes the following criteria into consideration:
<ul>
 <li>the competence and commitment of the employees</li>
 <li>the billing process</li>
 <li>the clarity of customer information</li>
</ul>
The rating uses the marks of the Swiss school grading system: 5.5 - 6.0 = very good, 5.0 - 5.4 = good, 4.5 - 4.9 = satisfactory, 4.0 - 4.4 adequate, below 4 = poor. 
To guarantee maximum exactness, the individual marks of each customer are added together to a total mark. The final mark of a financial institution therefore corresponds to the average of all final marks given by the individual interviewees and not with the average of the individual marks. 
 
Customer satisfaction survey 2016

Comparis Rating

comparis_note

When German interest practice is applied, the <a href="/hypotheken/info/glossar/zinssatz">interest rate</a> is quoted for a calendar year, irrespective of whether the year has 365 or 366 days. See also <a href="/hypotheken/info/glossar/internationale-zinsusanz">international interest practice</a>.

German interest practice

deutsche_zinsusanz

Interest rates for mortgages vary strongly. A comparison of the different bank offers pays off. Benefit from the Mortgage Market and the mortgage rate overview by comparis.ch. 

The down payment is the portion of a home&rsquo;s purchase price directly financed in cash by the buyer. The mortgage lender usually requires a down payment of 10% (minimum standard required by FINMA as of 1&nbsp;June 2012). For this, you can use assets, savings and <a href="/hypotheken/info/glossar/private-vorsorge">3rd pillar</a> capital. Pension savings from the <a href="/hypotheken/info/glossar/zweite-saeule">2nd pillar</a> are excluded. The purchase of a property by a mortgagor using a down-payment derived exclusively from pension fund assets will not meet the minimum standards.

Down payment

eigenkapital

If you own living property, you have to pay federal and cantonal tax on your property. This is done with the help of the so-called imputed rental value.  

If you own living property, you must pay tax on your property at the federal and cantonal administration. This happens in the form of so-called imputed rental value that is treated as fictitious income in the tax declaration.
Imputed rental value is the income you would receive if you would rent out the <a href="https://en.comparis.ch/immobilien/default">property</a>. For direct Federal tax, 70 percent of the average market rent is due. The calculation in the cantons varies.
Imputed rental value is fixed by the tax administration. It is worthwhile to take a close look at the assessment disposition and possibly dispute it. You might be able to save a lot of money by doing so.
From a fiscal point of view it is not worthwhile to pay back the <a href="https://en.comparis.ch/hypotheken/hyporatgeber/modelle">mortgage</a> &ndash; as the imputed rental value has to be taxed in any case. However, if you no longer can deduct interest on debt, you have a fiscal disadvantage. 
<a href="/hypotheken/hyporatgeber/steuerspartipps">Go to overview of tax saving tips</a>

Taxation of imputed rental value - comparis.ch 

Title

eigenmietwert

What is the difference between a first and second mortgage? Find out all you need to know about amortization and interest rate differences here.

Mortgage borrowers are legally required to pay at least 20% of the construction or purchase price of a property in the form of a <a href="/hypotheken/info/glossar/eigenkapital">deposit</a>, the rest being financed by a mortgage.
The first mortgage usually only covers up to two thirds of the purchase price, which represents a <a href="/hypotheken/info/glossar/belehnung">loan-to-value ratio</a> of 66%. If you need to, you can then take out a second mortgage for any remaining amount that you cannot cover using your own funds. Because of the higher risk of loss, the lender generally applies a higher interest rate to the second mortgage (0.5-1.0% more than the first mortgage).
Apart from the higher interest rate, the main difference between a first and second mortgage is that the second is subject to the rules of <a href="/hypotheken/info/glossar/amortisation">amortization</a>. While the first mortgage has an unlimited term, the second mortgage must be paid off within a fixed repayment period. This can vary slightly from lender to lender, but the second mortgage is typically paid off within 15 years or by retirement age, whichever is sooner.
First and second mortgages: example calculation
<table>
 <tbody>
 <tr>
 <td>Property purchase price</td>
 <td>CHF 1,000,000</td>
 <td>&nbsp;</td>
 </tr>
 <tr>
 <td>&nbsp;Deposit&nbsp;</td>
 <td>CHF&nbsp;250,000</td>
 <td>25%</td>
 </tr>
 <tr>
 <td>&nbsp;Loan-to-value ratio</td>
 <td>&nbsp;</td>
 <td>75%</td>
 </tr>
 <tr>
 <td>&nbsp;First mortgage</td>
 <td>CHF&nbsp;650,000</td>
 <td>65%</td>
 </tr>
 <tr>
 <td>&nbsp;Second mortgage</td>
 <td>CHF&nbsp;100,000</td>
 <td>10%</td>
 </tr>
 </tbody>
</table>

First and second mortgages

erste-und-zweite-hypothek

Mortgage with more favourable interest conditions for families with children under 18 years of age (on offer from a large number of providers under several names). Depending upon the provider, the underlying <a href="/hypotheken/info/glossar/modell">mortgage model</a> is a <a href="/hypotheken/info/glossar/festhypothek">fixed</a>, <a href="/hypotheken/info/glossar/variable-hypothek">variable</a> or <a href="/hypotheken/info/glossar/geldmarkthypothek">money market mortgage</a>.

Family mortgage

familien_hypothek

Everything you need to know about financing the purchase of a holiday home.


If you dream of owning a holiday home, HypoPlus can help you find the right mortgage to make this dream come true. The guidelines followed by lenders for financing a holiday home differ in some respects from those for financing a permanent home.
<h2>Loan-to-value ratio limits often lower for holiday homes</h2>
While the guidelines for financing a permanent home allow up to 80% (sometimes even 90%, with suitable additional collateral) of the purchase price, depending on the lender, <a href="https://en.comparis.ch/hypotheken/anfrage?financingType=2">to be </a><a href="https://en.comparis.ch/hypotheken/anfrage?financingType=2">financed</a><a href="https://en.comparis.ch/hypotheken/anfrage?financingType=2"> by a mortgage</a>, those for holiday properties often allow only 50&ndash;70% of the property's value to be financed through mortgage borrowing. However, certain lenders will provide a mortgage of up to 80% on holiday homes too. Speak to your independent mortgage advisor at HypoPlus to find a suitable lender.
<h2>Stricter amortization conditions</h2>
The amortization conditions applying to holiday homes are usually stricter than those applying to main homes. The repayments must be made within a shorter time frame and the percentage of the market value to be repaid is higher, usually up to 50%.
<h2>Pension assets can't be used for the deposit</h2>
While prospective owner-occupiers have the option of using all or some of the capital accumulated in their pension fund as part of the deposit, this is not allowed for the purchase of holiday homes. Money held in a pillar 3a restricted pension plan cannot be used either.
<h2>Building a holiday home &ndash; points to note</h2>
On 11 March 2012, Swiss voters accepted an initiative to limit the construction of second homes. It was then enshrined in the Swiss Federal Constitution that the proportion of second homes in any municipality may not exceed 20% of the total housing stock. The ordinance of the Federal Council came into force on 1 January 2013. If you are wondering whether to buy a second home, you should first of all clarify the following points:
<ul style="margin-top: 0px; margin-bottom: 0px;">
 <li dir="ltr" style="list-style-type: disc;">
 Is the holiday home to be constructed also a second home by definition? 
 Second homes are those that are not used permanently or for the purposes of work, studying or training or to be let out to tourists.
 </li>
 <li dir="ltr" style="list-style-type: disc;">
 Is the municipality in which the second home is to be built subject to the Second Homes Ordinance of 22 August 2012?
 </li>
</ul>
You can obtain more information from the municipalities, the Federal Office for Spatial Development (ARE) and legal authorities.
<h2>Total cost of maintaining a holiday home</h2>
Like permanent homes, holiday homes incur various costs in addition to mortgage interest. Below we have provided an overview of these costs based on the following example:
<ul>
 <li dir="ltr" style="margin-top: 8pt; margin-bottom: 8pt;">3.5-room holiday apartment in 7165 Brigels (GR)</li>
 <li dir="ltr" style="margin-top: 8pt; margin-bottom: 8pt;">New-build</li>
 <li dir="ltr" style="margin-top: 8pt; margin-bottom: 8pt;">Purchase price: CHF 500,000</li>
</ul>
Here is a breakdown of the costs associated with a holiday property:
<h3 dir="ltr" style="margin-top: 8pt; margin-bottom: 8pt;">Renovation fund</h3>
In the case of holiday apartments, each unit &ndash; as is usual with <a href="https://en.comparis.ch/hypotheken/wohneigentum/information/stockwerkeigentum">condominium ownership</a> &ndash; pays a fixed annual amount into a renovation fund, which is to be used for general renovation work to the building (e.g. replacing the roof). As a rule of thumb, a total amount of around 0.5% of the building insurance value should be paid in per year. The renovation fund is generally allowed to grow until it reaches a certain limit (e.g. CHF 50,000) and is not further increased unless a larger investment is required at short notice. Assuming, for instance, a building insurance value of CHF 2.4 million and that the building is divided into 6 units, each having roughly the same co-ownership share, the annual cost for each unit will be around CHF 2,000.
<h3>Shared ancillary costs</h3>
Normally, the homeowner association sets up another fund or account to cover shared ancillary costs (e.g. caretaker, lift maintenance etc.). Just like with the renovation fund, the amount to be contributed by each unit is based on the co-ownership share. For this and non-homeowner association maintenance costs (see also next point), you should budget around 0.3% of the individual purchase price per year.
<h3>Non-homeowner association maintenance costs</h3>
It is a good idea to set aside a reserve fund to cover the cost of renovating your own apartment and any areas to which you have exclusive rights, as the renovation fund is not intended for this. You should therefore budget a reserve of around 0.3% of the purchase price (which also covers shared ancillary costs) per year &ndash; in other words, around CHF 1,500 per year for a purchase price of CHF 500,000.
<h3>Tax in the canton of the holiday home</h3>
Don&rsquo;t forget to consider the tax implications of buying a holiday home. As with all owned property in Switzerland, you will be required to pay tax on the so-called imputed rental value in the canton where the property is located. The imputed rental value rate charged by the tax office can vary from canton to canton, but is a minimum of around 60% of the usual annual market rental price for the property in question. Although you can deduct maintenance costs and mortgage interest from this amount, there will generally always be an amount remaining. This amount is then taxed in the canton where the holiday property is located at the tax rate applicable for the main home &ndash; even if the remaining amount is only small.

Holiday homes

ferienwohnung_ferienhaus

A fixed-rate mortgage binds you for a certain duration and the interest rate is fixed. 

The fixed-rate mortgage is mainly characterised by one feature: the interst rate is fixed over a certain duration. The usual terms are two to ten years. Some providers also offer terms of up to fifteen or twenty years in certain cases.
<h3 class="headline highlighted">Advantages</h3>
When&nbsp;interest rates are low, you can "fix" this low interest rate over a long term. If you assume that interest rates will increase, a mortgage with fixed rates is ideal for you. 
The costs remain stable, calculable and predictable &ndash; there are no unpleasant surprises during the defined term. You do not have to worry about the interest situation on the markets during this time.
The fixed-rate mortgage is suitable for people who are sure that their personal situation will not change fundamentally during the term of their mortgage. 
<h3 class="headline highlighted">Disadvantages</h3>
If the rates drop, you cannot benefit from this decrease during the term of the mortgage. 
At the moment it can be very interesting to benefit as long as possible from the low interest rates. But are you a hundred percent sure that you will have the same job and live in the same city in eight years? It can be expensive if you have to terminate the mortgage prematurely; often the banks demand high fees. The fixed-rate mortgage can also become a burden in case of a divorce. Basically, two compensation models apply: calculation of payback according to the residual term of the original contract or according to the difference in interest rate.
&nbsp;
<a href="/hypotheken/modelle.aspx">Go to model overview</a>

Fixed-rate mortgage

festhypothek

Lower interest limit for a <a href="/hypotheken/info/glossar/geldmarkthypothek">money market mortgage</a>. By waiving cheaper interest rates due to the floor, a reduction of the total interest results for the <a href="/hypotheken/info/glossar/geldmarkthypothek">money market mortgage</a>.

Floor

floor

Mortgage interest rates vary widely. It is worth comparing deals from different lenders. Find out more about mortgages and check out the mortgage rate overview at comparis.ch.


If your mortgage is due to start several months in the future, many lenders give you the option of fixing your rates in advance. If you choose to do this, you will be required to pay a so-called forward surcharge, which is payable on top of the interest/total mortgage amount.
Does this mean the mortgage should be renewed early on? This depends on the interest rate outlook for your particular situation and how much security you need.

Forward surcharge

forwardzuschlag

Energy efficient property also saves money on mortgages. Banks offer a mortgage rate reduction for GEAK-certified buildings.

GEAK is the official energy efficiency certificate of the cantons. The certificate indicates how efficient a building structure is as well as how much energy is required in the standard use of the building. Energy demand is divided into classes from A to G (very energy efficient to little energy efficient). This provides the owner with an objective assessment of the degree of efficiency of the building. Certain banks offer a reduction from the standard interest rate for GEAK-certified property (class A and/or B).

Cantonal building energy certificate - GEAK

GEAK

A money market mortgage is based on the LIBOR interest rate and offers the advantage of transparent interest rates that reflect market conditions.

A money market mortgage, also known as a <a href="/hypotheken/info/glossar/libor-hypothek">LIBOR mortgage</a>, is characterized by a transparent interest rate structure that reflects market conditions.
Most money market mortgages are based on a 3-month or 6-month LIBOR (London Interbank Offered Rate), whereby a new interest rate is set every three or six months based on the LIBOR, and the bank's margin added to it. For the next three or six months, the borrower pays a fixed interest rate until it is then reset on the basis of the LIBOR again.
For more details about this mortgage type, see <a href="/hypotheken/info/glossar/libor-hypothek">LIBOR mortgage</a>.
<div><a data-theme="p" data-role="button" data-ct-subtype="CrossSellingButton" data-ct-type="CrossSelling" data-ct-area="hyothekenratgeber" data-ct-id="hypotheken crossselling hypothekenratgeber" data-ct="true" class="icon-right strong button" href="/hypotheken/hyporatgeber/modelle">Overview of mortgage types</a></div>

Money market mortgage – comparis.ch

PageHeading

geldmarkthypothek

What is the land register? What does a land register extract look like? comparis.ch answers these questions and more.

<h2>What is the land register and who is responsible for it?</h2>
The land register is a record of property rights. It is managed at cantonal level and regulated by the <a href="https://www.admin.ch/opc/de/classified-compilation/20111142/index.html">land registry ordinance</a> (in German, French and Italian only). Land registries are responsible for maintaining the land register.
<h2>What is recorded in the land register?</h2>
The land register comprises the main register, the journal, the owner register, the creditor register and the auxiliary register. It provides a record of information such as ownership details, changes of ownership, mortgage rights and easements. It can therefore be used to answer questions relating to the law of neighbours.
The main register is divided into the following sections:&nbsp;ownership,&nbsp;easements,&nbsp;land charges,&nbsp;mortgage rights,&nbsp;priority notices,&nbsp;notes.&nbsp;In the journal, information is recorded in chronological order. The owner register lists the names of owners, while the creditor register lists the creditors who are not recorded in the main register under mortgage rights.&nbsp;The auxiliary register can contain additional information such as street directories.
<h2>&nbsp;Who can view the land register?</h2>
Access rights for the land register are described in the <a href="https://www.admin.ch/opc/de/classified-compilation/20111142/index.html#a26">land register ordinance</a> (in German, French and Italian only) but essentially anyone can request certain information from the main register without having to provide a legitimate reason.
<h2>What information does a land register extract contain?</h2>
A land register extract contains a description of the land, ownership details, notes, priority notices, charges, easements and mortgage rights.
Here is an <a href="https://www.gva.bs.ch/dam/jcr:515c3d6c-c129-4658-b493-eb74b9d7d23c/Erklaerter_Grunduchauszug.pdf">example of a land register extract</a> from the canton of Basel-Stadt (in German).
<div>
<h2>Where can I obtain a land register extract?</h2>
Here is a list of land registries in the various cantons:
<table>
 <tbody>
 <tr>
 <td><a href="https://www.ag.ch/de/dvi/grundbuch_vermessung/grundbuch/dokumentenbestellung/bestellung_dokumente_hinweis.jsp?sectionId=258599#258599">Aargau land registry</a></td>
 <td><a href="http://www.ow.ch/de/verwaltung/aemter/?amt_id=203">Obwalden land registry</a></td>
 </tr>
 <tr>
 <td><a href="https://www.ai.ch/verwaltung/volkwirtschaftsdepartement/grundbuchamt">Appenzell Ausserrhoden land registry</a></td>
 <td><a href="https://sh.ch/CMS/Webseite/Kanton-Schaffhausen-1756-DE.html">Schaffhausen land registry</a></td>
 </tr>
 <tr>
 <td><a href="https://www.ai.ch/themen/planen-und-bauen/grundbuch-notariat/grundbuchauszug/formular">Appenzell Innerrhoden land registry</a></td>
 <td><a href="https://www.notariat-schwyz.ch/Dienstleistungen/Grundstueckgeschaefte/Grundbuchauszuege">Schwyz land registry</a></td>
 </tr>
 <tr>
 <td><a href="https://www.terintra.bl.ch/">Basel-Landschaft land registry</a></td>
 <td><a href="https://www.so.ch/verwaltung/finanzdepartement/grundbuchaemter/">Solothurn land registry</a></td>
 </tr>
 <tr>
 <td><a href="http://www.gva.bs.ch/formulare/bestellformular-grundbuch-planauszuege.html?mgnlFormToken=txUpNmu7mbNbLOIjXxl4hp18oIAVWOjm"></a><a href="http://www.gva.bs.ch/formulare/bestellformular-grundbuch-planauszuege.html?mgnlFormToken=txUpNmu7mbNbLOIjXxl4hp18oIAVWOjm">Basel-Stadt land registry</a></td>
 <td><a href="https://www.sg.ch/politik-verwaltung/gemeinden/grundbuch/grundbuchaemter.html">St. Gallen land registry</a></td>
 </tr>
 <tr>
 <td><a href="https://www.jgk.be.ch/jgk/de/index/direktion/organisation/gba/grundbuchauszug.html">Bern land registry</a></td>
 <td><a href="https://gni.tg.ch/dienstleistungen/grundbuchaemter.html/2460">Thurgau land registry</a></td>
 </tr>
 <tr>
 <td><a href="https://www.ge.ch/consulter-registre-foncier">Geneva land registry</a></td>
 <td><a href="https://online-services.admin.ch/it/services/servizi-on-line-cantonali/registro-catastale/sito-internet-del-registro-fondiario/?canton=ti">Ticino land registry</a></td>
 </tr>
 <tr>
 <td><a href="https://www.gl.ch/verwaltung/volkswirtschaft-und-inneres/wirtschaft-und-arbeit/grundbuchamt.html/1037">Glarus land registry</a></td>
 <td><a href="https://egov.ur.ch/teraspur/">Uri land registry</a></td>
 </tr>
 <tr>
 <td><a href="https://www.gr.ch/DE/institutionen/verwaltung/dvs/giha/grundbuch/grundbuchkreise/Seiten/default.aspx">Graub&uuml;nden land registry</a></td>
 <td><a href="https://www.vs.ch/fr/web/srf/office-pour-l-introduction-et-l-informatisation">Valais land registry</a></td>
 </tr>
 <tr>
 <td><a href="https://grundbuch.lu.ch/onlinedienste/auszugsbestellung">Lucerne land registry</a></td>
 <td><a href="https://www.vd.ch/themes/territoire-et-construction/registre-foncier/consultation-du-registre-foncier/">Vaud land registry</a></td>
 </tr>
 <tr>
 <td><a href="https://www.ne.ch/autorites/DDTE/SGRF/rf/Pages/Accueil.aspx">Neuch&acirc;tel land registry</a></td>
 <td><a href="https://www.zg.ch/online-dienstleistungen/bauen-umwelt-und-verkehr/grundbuchauszug">Zug land registry</a></td>
 </tr>
 <tr>
 <td><a href="https://www.nw.ch/grundbuchamt/309">Nidwalden land registry</a> 
 </td>
 <td><a href="https://www.notariate.zh.ch/deu/grundbuch/auszugsbestellung/">Zurich land registry</a></td>
 </tr>
 </tbody>
</table>
</div>

<h2>What fees may be charged in connection with the land register?</h2>
The cantons may charge a fee for entering information in the land register (<a href="https://www.admin.ch/opc/en/classified-compilation/19070042/index.html#a954">Art. 954 of the Swiss Civil Code</a>). The prices vary according to the canton and type of entry. You can find out what they are from the responsible notary&rsquo;s office.
You can find out more about documents and possible fees <a href="https://en.comparis.ch/hypotheken/hyporatgeber/gebuehren-und-unterlagen/kosten">here</a>.
&nbsp;
&nbsp;
&nbsp;

Land register extract | questions and answers

grundbuchauszug

'Self-used' means that the property is occupied respectively used by you. 'Third party used' means that the property is used by a third party. In case of third party usage enter the current or expected rental income. If you live in an apartment in a block, where the other apartments are rented out to third parties, please select 'third party usage' as main means of usage. Choose 'self-used' if you live in the major part of the property yourself. In both cases enter a comment in the remarks section below.

Main form of usage

hauptsaechliche_nutzungsform

What is a mortgage and when do you need one?

When you buy a property, some of the purchase price is covered by a deposit and the rest usually financed through borrowing in the form of a <a href="/hypotheken/hyporatgeber/modelle">mortgage</a>. A mortgage is defined as a lien on a property. <a href="/hypotheken/anbieter/default">Lenders</a> (banks, insurance companies, pension funds etc.) grant a <a href="/hypotheken/info/glossar/hypothekarbetrag">loan amount</a> and the property owner pays <a href="/hypotheken/info/glossar/hypothekarzins">mortgage interest</a> in return. The lien secures the mortgage loan and interest for the lender. You can use the <a href="/hypotheken/hypothekenrechner">mortgage calculator</a> to work out the <a href="/hypotheken/info/glossar/tragbarkeit">affordability</a> of the mortgage, the <a href="/hypotheken/info/glossar/belehnung">loan-to-value ratio</a> and the monthly costs for a particular property.

Definition of mortgage

hypothek

Mortgages amount to the difference between the price of purchase respectively building
costs and the own assets. 
 
For example: 
 

<table>
 <tbody>
 <tr>
 <td>Price of purchase</td>
 <td>&nbsp;&nbsp;</td>
 <td>&nbsp;&nbsp;CHF 680,000</td>
 </tr>
 <tr>
 <td>Financial assets</td>
 <td>&nbsp;&nbsp;</td>
 <td>- CHF 140,000</td>
 </tr>
 <tr>
 <td>Amount of mortgage</td>
 <td>&nbsp;&nbsp;</td>
 <td>&nbsp;&nbsp;CHF 540,000</td>
 </tr>
 </tbody>
</table>
 
 
Please consider that the proportion between the own capital and the amount of mortgage is vital
for the providers (also see <a href="/hypotheken/info/glossar/belehnung">loan-to-value ratio</a>.)

Amount of mortgage

hypothekarbetrag

Save time and money: find a cheap mortgage thanks to an online comparison and neutral advice from qualified mortgage specialists.

The Mortgage Market was replaced on 21.01.2014 by the offering of the Comparis sister company <a href="/hypotheken/info/glossar/hypoplus.aspx">HypoPlus</a>. 
 
Access the HypoPlus mortgage calculator <a href="/hypotheken/default.aspx">here</a>.

Specialised mortgage consulting from HypoPlus

hypotheken-boerse

When international interest practice is applied, the <a href="/hypotheken/info/glossar/zinssatz">interest rate</a> is quoted for 360 days. For a calendar year (not a leap year) interest costs are calculated for 365 days. To obtain the yearly costs, the <a href="/hypotheken/info/glossar/zinssatz">interest rate</a> must be multiplied by the factor 365/360=1.01389. Also see <a href="/hypotheken/info/glossar/deutsche_zinsusanz">German interest practice</a>.

International interest practice

internationale-zinsusanz

Interest rates for mortgages vary strongly. A comparison of the different bank offers pays off. Benefit from the Mortgage Market and the mortgage interest rate overview from comparis.ch.

Purchase price according to contract. Initial and building costs in the case of a new building.

Purchase price

kaufpreis-immobilie

Mortgage which combines a <a href="/hypotheken/info/glossar/festhypothek">fixed mortgage</a> with a <a href="/hypotheken/info/glossar/variable-hypothek">variable</a> or <a href="/hypotheken/info/glossar/geldmarkthypothek">money market mortgage</a>. Part of the credit is on a fixed, the rest on a variable interest rate.

Combi mortgage

kombi-hypothek

Depending on the provider, different mortgage models can be combined as you like. 

Most institutes allow a combination of different models or even promote them actively; for example different terms in a first and second tranche or a fixed mortgage in the first tranche and a variable mortgage in the second tranche.
Such combinations can be sensible, as a smart combination can equalise rates or minimise risks. However, with such combinations reduce transparency and therefore the comparability of the offer.
At the same time, this way institutes try to bind you for as long as possible; especially different terms in the different tranches are a popular way of doing so.
Let the institute explain in detail what the advantages as well as possible risks and disadvantages of a combination are. Don&rsquo;t sign anything that you can&rsquo;t understand completely.
&nbsp;
<a href="/hypotheken/hyporatgeber/modelle">Go to overview of models</a>

Model combinations of mortgages - comparis.ch

kombinationen

Liquid assets comprise cash, deposits in Post Office and bank accounts.

Liquid assets

kontoguthaben

If you want to switch to a different lender or mortgage type, you need to observe the period of notice. This can vary depending on the mortgage type and the lender. Check the required period of notice in good time.

This text will be available as soon as possible.

If you want to switch to a different lender or mortgage type, you need to observe the period of notice. This can vary depending on the <a href="/hypotheken/hyporatgeber/modelle">mortgage type</a> and the lender. In all cases, we advise you to check what period of notice applies to you at least six months before your mortgage ends (this information is in your mortgage agreement).
<ul style="list-style-type: disc;">
 <li><a href="/hypotheken/info/glossar/festhypothek">Fixed-rate mortgage</a>: With fixed-rate mortgages, the mortgage ends on a set date and you may have to pay a high <a href="/hypotheken/info/glossar/vorfaelligkeitspraemie">early repayment charge</a> if you want to redeem it early. It's therefore a good idea to wait until the end of the term before switching. As the penalty for switching lenders mid-term can be tens of thousands of francs, it is only worth doing in very few cases, even if the interest rate offered by the new deal is lower. Check your mortgage agreement to see if you are required to give notice on your fixed-rate mortgage. Some lenders require you to do so, and if you don't, they will automatically transfer your mortgage to a variable-rate mortgage at the end of the term.</li>
 <li><a href="/hypotheken/info/glossar/libor-hypothek">Libor mortgage</a>: Like fixed-rate mortgages, Libor mortgages come with a hefty fee if you switch lenders mid-term (terms are usually three to five years). However, many lenders allow borrowers to switch internally to a fixed-rate mortgage. This is particularly advisable if you think mortgage rates are likely to increase in the long term.</li>
 <li><a href="/hypotheken/info/glossar/variable-hypothek">Variable-rate mortgage</a>: It's relatively easy to exit a variable-rate mortgage because there is no fixed term. You just need to observe the notice period, which is usually three to six months.</li>
</ul>
This might also interest you:
<a href="/hypotheken/hyporatgeber/abloesung">Renewing a mortgage</a>
<a href="/hypotheken/info/glossar/tranchierung">Splitting a mortgage</a>

Period of notice for mortgages – comparis.ch

kuendigungsfrist

Validity period of mortgage agreement.

Mortgage term

laufzeit

The rate of a LIBOR mortgage, also known as a money market mortgage, is adjusted to reflect current market rates. The pros and cons at comparis.ch.

Like a <a href="/hypotheken/info/glossar/variable-hypothek">variable-rate mortgage</a>, a LIBOR mortgage is a mortgage whose interest rate can change during the repayment term. The interest rate of a LIBOR mortgage, also known as a money market mortgage, is adjusted to reflect market conditions every three to six months, as defined in the mortgage agreement. In addition, the repayment term of a LIBOR mortgage is fixed &ndash; usually at three to five years.
LIBOR stands for London Interbank Offered Rate. This is the interest rate banks charge when they lend each other money for the short term. A LIBOR mortgage comprises just two components: the LIBOR interest rate and the margin set by the bank. It is therefore very transparent.
<h2>How a LIBOR mortgage works</h2>
The interest rate for a LIBOR mortgage is calculated using the LIBOR and the margin applied by the lender. Although the LIBOR is recalculated every day, a LIBOR mortgage offers a bit more stability. Borrowers can choose at what intervals the interest rate should be adjusted. Lenders usually let borrowers choose between a 3, 6 or 12-month LIBOR. The repayment term is usually three to five years.
<h2 class="headline highlighted">Pros</h2>
When interest rates are low, a LIBOR mortgage is the cheapest option. It has generally been the cheapest type of mortgage for the past ten years. 
 
When interest rates fall, borrowers feel the benefits straight away. Since the LIBOR can fluctuate strongly and therefore rise dramatically, this mortgage type is only suitable for borrowers who have the funds to cope with a sharp rise in rates.
<h2>Cons</h2>
Who knows what the interest rate will be in, say, four years&rsquo; time? No one. Even the savviest experts can only speculate. To take out a LIBOR mortgage, you need to have a financial cushion against risk, as the LIBOR mortgage clearly involves a certain level of risk in a climate of rising interest rates.
<h2 class="headline highlighted">Protection against fluctuations</h2>
Some lenders offer protection against interest rate fluctuations, in the form of a <a href="/hypotheken/info/glossar/cap-zinskostenbegrenzung">cap</a>. This is an upper limit above which the interest rate may not rise during the entire term of the mortgage. But this interest rate ceiling comes at a price. Usually, the charge for this type of agreement must be paid at the beginning of the mortgage term.
<h2>Saron mortgage set to replace LIBOR mortgage</h2>
The Saron mortgage will replace the LIBOR mortgage at the end of 2021.
<a variant="primary" mb="3rem" href="/hypotheken/info/glossar/saron-hypothek">About the Saron mortgage</a>

The LIBOR mortgage explained – comparis.ch

libor-hypothek

The property value is defined by the <a href="/hypotheken/info/glossar/kaufpreis-immobilie">purchase price</a> or the so-called <a href="/hypotheken/info/glossar/verkehrswert">market value</a>, if a more recent valuation is available.

Value of property

liegenschaftswert

Interest rates for mortgages vary strongly. A comparison of the various bank offers is worthwhile. Benefit from the Mortgage Market and the Mortgage Rate Overview by comparis.ch.

Annual net of rental incomes, i.e. gross of rental incomes from the property minus costs for this property (mortgage rate, running costs, maintenance costs, etc.).

Annual rental incomes

mietzinseinnahmen

A Minergie building saves more than energy - banks also offer better interest rates with so-called Minergy mortgages.

MINERGIE is a quality label for new construction and modernised older construction of all building categories. Minergie buildings efficiently save energy. Minergie goals are defined as energy use thresholds. These result in long-term lower energy costs, improved value retention and greater comfort. 

The three most important conditions for achieving the MINERGIE standard are: 
<ul><li>a sealed and compact building shell</li>
<li>optimised wall and window insulation</li>
<li>an automated ventilation system with heat recovery</li></ul>


Certain banks offer reductions from the standard mortage interest rates for MINERGIE-certified construction or renovations.

Save with a Minergie mortgage-comparis.ch

minergie-hypothek

Mortgage interest rates vary widely. It is worth comparing different lenders. Check out the mortgage rate overview provided by the Mortgage Market at comparis.ch.

With a split mortgage, the mortgage amount is divided into two accounts, with the borrower able to decide on the percentage split (e.g. 50:50). 
 
Usually, one of the accounts is a <a href="/hypotheken/info/glossar/festhypothek">fixed-rate mortgage</a>, while the second can be either a <a href="/hypotheken/info/glossar/variable-hypothek">variable-rate mortgage</a>, a <a href="/hypotheken/info/glossar/libor-hypothek">Libor mortgage</a> or another fixed-rate mortgage with a longer term.

Split mortgage

mix-hypothek

The following models are commonly available: <a href="/hypotheken/info/glossar/festhypothek">Fixed mortgage</a>, <a href="/hypotheken/info/glossar/variable-hypothek">Variable mortgage</a>, <a href="/hypotheken/info/glossar/libor-hypothek">Libor mortgage</a>, <a href="/hypotheken/info/glossar/stufenhypothek">Graduated mortgage</a>, <a href="/hypotheken/info/glossar/start-hypothek">Start mortgage</a>, <a href="/hypotheken/info/glossar/minergie-hypothek">Minergie mortgage </a>, <a href="/hypotheken/info/glossar/kombi-hypothek">Combi</a> or <a href="/hypotheken/info/glossar/mix-hypothek">Mix mortgage</a>, <a href="/hypotheken/info/glossar/portfoliohypothek">Portfolio mortgage</a>, <a href="/hypotheken/info/glossar/rollover-hypothek">Rollover mortgage</a>. 

Models are available which do not fit into any of the above categories, for example a building loan or a loan granted exclusively for renovation work.

Models

modell

Incidental expenses arising from property maintenance (as a general rule you can count on 1% of the property value).

Incidental expenses

nebenkosten

The Portfolio mortgage is a special UBS model (unlimited duration and quarterly interest rate adjustment)

Portfolio mortgage

portfoliohypothek

Private provisions in banks or insurance. You can use your savings from private provisions to finance the property you live in. Money can be withdrawn every 5 years.

3rd Pillar

private-vorsorge

Mortgage which combines a <a href="/hypotheken/info/glossar/festhypothek">fixed mortgage</a> with a <a href="/hypotheken/info/glossar/geldmarkthypothek">money market mortgage</a>.

Rollover mortgage

rollover-hypothek

Saron mortgages are set to replace Libor mortgages. What does this mean for mortgage borrowers? We answer the most important questions here.

The Libor will be discontinued at the end of 2021 and the Saron will take its place. The Saron is significant for private individuals, as it also determines the price of &ldquo;money market&rdquo; mortgages. Currently, most mortgage lenders are still selling money market mortgages under the name of &ldquo;Libor mortgage&rdquo;. In future, Libor mortgages will be called Saron mortgages. Some banks are already offering Saron mortgages.&nbsp;
Why is the Libor being phased out? 
The Libor has been discredited due to its susceptibility to manipulation. In 2011, for instance, it was revealed that various banks had been charging excessive interest rates in collusion with each other in order to rig the benchmark rate. The Swiss National Bank (SNB) tasked the National Working Group on Swiss Franc Reference Rates (NWG) with finding a replacement for the Libor. It had already advised banks to use the Saron as the new reference interest rate at the end of 2018.&nbsp;
What is the Saron?&nbsp; 
Saron stands for Swiss Average Rate Overnight. It is the interest rate charged by the SNB to banks and insurance companies for investments of excess liquidity or for short-term borrowing. Compared to the Libor, the Saron is more transparent because it is based on actual transactions. It is also considered more robust than its predecessor as, unlike the Libor, the loans to which it applies have securities deposited as collateral.
How is the Saron calculated? 
Unlike the Libor, the Saron is purely an overnight rate. However, money market mortgages require rates for longer terms such as one, three or six months. For this scenario, the NWG devised the Saron Compound rate. <a href="https://www.snb.ch/en/iabout/stat/statrep/id/current_interest_exchange_rates#t2">SIX publishes the current interest rate on a daily basis.</a>
Will my existing Libor mortgage automatically become a Saron mortgage? 
Some current Libor mortgages will automatically be converted to Saron mortgages. This depends on your mortgage agreement. Some banks have an automatic conversion process in place. Others have stopped issuing Libor mortgages with terms going beyond the end of the Libor.
What is the difference between a Saron mortgage and a Libor mortgage? 
In the current low interest rate environment, both Libor and Saron rates are well below zero. Banks are holding their interest rates at zero. This means that customers are currently only paying the bank's margin on both Libor and Saron mortgages. It can be assumed that the Saron will have to fall lower than the Libor because it is backed by securities as collateral against the risk of default in times of crisis. Historically, the Libor has also proven much more volatile than the Saron. <a href="https://www.six-group.com/en/products-services/financial-information/indices/swiss-indices/saron.html">SIX, the benchmark administrator of the Saron rate, has listed five more differences.</a>&nbsp;
Can I take out a Saron mortgage now? 
Yes, some banks, such as Raiffeisen and UBS, are already offering Saron mortgages. Almost all the other banks will follow in the summer or autumn. The transition will be complete by the end of the year.&nbsp;<a /hypotheken/angaben">Compare your interest rates and request a quote now.</a>
&nbsp;

Saron mortgage

saron-hypothek

We explain what indicative rates are and why they are often higher than the final negotiated rates.

Also known as benchmark rates, indicative rates are the rates mortgage lenders advertise on their websites. They are not necessarily the same as the actual rates subsequently negotiated.
With some skilful negotiation or the help of independent mortgage experts, you can often achieve better interest rates than those published.

<div> 
</div>

What are indicative rates in the context of mortgages?

schaufensterzinsen

What is the interest rate on debt for mortgages? – comparis.ch

The interest rate on debt is the interest rate that must be paid on borrowed capital &ndash; in this case a mortgage. 
Find out <a href="/hypotheken/hyporatgeber/steuerspartipps/schuldzins">here</a> how to deduct these interest payments from your taxable income and what to watch out for.
 
&nbsp;

Interest rate on debt

schuldzins

Special mortgages: cheaper Start mortgage, bonus for eco-friendly building (Minergie mortgage) or if children live in the household (family mortgage)

Numerous banks and insurance companies offer special models or special conditions. Thereby, these offers are often marketing products. This means that the providers look for a way to offer you especially good conditions for the start of the mortgage.&nbsp;
It is in any case worthwhile to ask for such offers. However, you should take a very close look at the conditions and include these special conditions in the comparison. The conditions are usually only granted for a certain time &ndash; after that, the normal conditions apply. This has to be considered in the comparison.
<h3>Start mortgage</h3>

Most providers offer a so-called Start mortgage as well. This is an interest bonus that is given if you take out a mortgage at a bank for the first time. The bonus is usually only granted for a certain time. The reductions vary strongly from bank to bank. It is worthwhile to take a closer look and calculate.

<h3 class="headline highlighted">Family mortgage</h3>

Many institutes offer a family mortgage. Thereby, usually an interest bonus is granted if children will be living with you in the property that you would like to finance. Also this reduction is usually only granted for a certain time. Sometimes, each child receives an individual deduction; sometimes the reduction already applies if a family has one or more children.
<h3>Minergie mortgage</h3>
This is a mortgage that is granted if the property is or was built according to the Minergie standard. If you are thinking of building property, you should consider this model. It is offered by most banks. Examples for ecological requirements are: eco-friendly heating systems, solar technology, air conditioning and refrigeration.


We have only listed the most common models and special conditions here. Ask for further reduction possibilities for your mortgage.


<a href="/hypotheken/hyporatgeber/modelle">Go to model overview</a>

Special models and special conditions for mortgages - comparis.ch

spezialmodelle

Mortgage with favourable conditions for new property buyers (offered by many providers under various names). Depending upon the provider, also special conditions for new customers wishing to renegotiate a mortgage. Underlying models can be <a href="/hypotheken/info/glossar/festhypothek">fixed</a>, <a href="/hypotheken/info/glossar/variable-hypothek">variable</a> or <a href="/hypotheken/info/glossar/geldmarkthypothek">money market mortgages</a>.

Start mortgage

start-hypothek

Interest repayments are distributed according to a certain formula over a fixed period. New buyers in particular can make lower repayments at the beginning and gradually increase them over time.

Graduated mortgage

stufenhypothek

swap

Ratio between expenditure for the property and buyer's income, expressed in percent. Affordability can be calculated with various formulae. In order to calculate expenditures, often with a <a href="/hypotheken/info/glossar/belehnung">loan-to-value-ratio</a> under 66 percent, a calculatory interest rate of 5 percent plus 1 percent of the property value (for renovations necessary to maintain the value) is used as a basis. For a loan-to-value-ratio exceeding 66 percent, a surcharge of 1 percent in amortisations applies. Many mortgage providers will not grant financing if affordability exceeds 33%.

Example with loan-to-value-ratio under 66%:
<table>
 <tbody>
 <tr>
 <td>Value of property&nbsp;</td>
 <td>CHF 700,000&nbsp;</td>
 </tr>
 <tr>
 <td>Mortgage</td>
 <td>CHF 400,000</td>
 </tr>
 <tr>
 <td>Gross income</td>
 <td>CHF 100,000</td>
 </tr>
 <tr>
 <td>Expenditures&nbsp;</td>
 <td>CHF 27'000 (CHF 20,000 interest charge, CHF 7,000 maintenance costs)</td>
 </tr>
 <tr>
 <td>Affordability</td>
 <td>27% (assuming an income of CHF 100,000)</td>
 </tr>
 </tbody>
</table>

Example with loan-to-value-ratio exceeding 66%:
<table>
 <tbody>
 <tr>
 <td>Value of property&nbsp;</td>
 <td>CHF 700,000&nbsp;</td>
 </tr>
 <tr>
 <td>Mortgage</td>
 <td>CHF 500,000</td>
 </tr>
 <tr>
 <td>Gross income</td>
 <td>CHF 100,000</td>
 </tr>
 <tr>
 <td>Expenditures</td>
 <td>CHF&nbsp;37,000 (CHF 25&lsquo;000 interest charge, CHF 7,000 maintenance costs and CHF 5,000 amortization surcharge)</td>
 </tr>
 <tr>
 <td>Affordability</td>
 <td>37% (assuming an income of CHF 100,000)</td>
 </tr>
 </tbody>
</table>
<a variant="secondary"
 mb="3rem"
 href="/hypotheken/hypothekenrechner"
 >

 Calculate affordability and loan-to-value ratio
</a>

Affordability

tragbarkeit

tranchierung

The variable-rate mortgage has no fixed term, it can be terminated at any time. The interest rate is periodically adjusted to the market situation. 

The variable-rate&nbsp;(or adjustable-rate)&nbsp;mortgage offers large flexibility as it has no fixed term. Twenty years ago it was the most common financing form for residential property. Today it is less sought after. The high flexibility offered by the variable-rate mortgage has its price &ndash; it is the most expensive financing form. Furthermore, the adjustment of the interest rates is not regulated as clearly as with the Libor mortgage. There is therefore no absolute guarantee that decreased rates are immediately passed on. 
<h3>Advantages</h3>
<ul>
 <li>
 Can be terminated at any time if&nbsp;the agreed notice periods are respected.
 </li>
 <li>Suitable for short-term financing of residential property, for example if the sale of property is due soon. </li>
</ul>
<h3>Disadvantages</h3>
<ul>
 <li>
 Rather expensive, especially when interest rates are low.
 </li>
 <li>The pricing is usually not transparent. </li>
</ul>
<a href="/hypotheken/hyporatgeber/modelle">Go to model overview</a>

Mortgage rate

Newsletter