The mortgage rate determines the cost of taking out a mortgage. How high it is depends on multiple factors, such as the market, the mortgage type and the credit standing of the borrower. 

The mortgage rate refers to the rate of interest charged to cover the cost of taking out a mortgage. How high it is depends on various factors, such as market conditions, type of mortgage and the borrower's credit rating. 

Mortgage rate explained

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/zweite-hypothek">second mortgage</a> (loan-to-value ratio starting at 66 per cent) is generally higher than that for a <a shape="rect" href="/hypotheken/info/glossar/erste-hypothek">first mortgage</a> (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

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

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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

With direct amortisation you pay back the mortgage in instalments; with indirect amortisation you pay the money into Pillar 3a. 

Amortisation basically means paying off a mortgage in instalments.&nbsp;
Example: If you amortise 1% of a mortgage each year, then on a mortgage of CHF 750,000 you will pay back CHF 7,500 per year. Most lenders require you to pay off a <a href="/hypotheken/info/glossar/zweite-hypothek">second mortgage</a> (when the loan-to-value ratio is over 65%) by the retirement age of 65 or within 15 years.
Amortisation can be direct (paying off the actual amount and thereby reducing the mortgage debt) or indirect (accumulating pledged funds via a pillar 3a account or private pension).
Read more on the subject here: <a href="/hypotheken/steuerspartipps.aspx">Tax-saving tips</a>

Direct and indirect amortisation of a mortgage - comparis.ch

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

Share of the property value which is funded by a mortgage. A mortgage of 650,000&nbsp;francs on a property valued at 1,000,000&nbsp;francs corresponds to a loan-to-value ratio of 65&nbsp;percent. The majority of providers offer mortgage funding up to a loan-to-value ratio limit of 70&nbsp;percent to 85&nbsp;percent.
Calculate affordability and loan-to-value ratio: <a href="/hypotheken/hypothekenrechner">Mortgage calculator</a>
&nbsp;See also:&nbsp;<a href="/hypotheken/info/glossar/erste-hypothek">1st&nbsp;mortgage</a>,&nbsp;<a href="/hypotheken/info/glossar/zweite-hypothek">2nd&nbsp;mortgage</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 property. 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 mortgage &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

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

Mortgage providers usually offer a loan-to-value ratio of 65&nbsp;per cent on a first mortgage. For loan-to-value ratios between 66 and 80 per cent, some banks and insurance companies offer <a href="zweite-hypothek">second mortgages</a>, which are subordinated to the first mortgage and carry an <a href="zinssatz">interest rate</a> that is around 0.5 to 1.0 per cent higher.


Example:
<ul>
 <li>The property's value is CHF&nbsp;1,000,000. </li>
 <li>The bank offers a first mortgage of CHF 650,000 (65%) and a <a href="zweite-hypothek">second mortgage</a> of CHF 150,000 (15%).</li>
 <a href="zweite-hypothek">
 </a>
 <li>A higher interest rate may apply to the CHF 150,000 of the <a href="zweite-hypothek">second mortgage. </a></li>
 <li>The CHF 150,000 must be paid back (amortised) before retirement age.</li>
 <li>The remaining amount of CHF 200,000 must be paid by the property owner in the form of a <a href="eigenkapital">deposit</a>.</li>
</ul>
&nbsp;

1st mortgage

erste-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

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

If financing is to begin several months hence, many providers offer the possibility of fixing conditions in advance. The cost of the financing then increases by the so-called forward supplement (not yet included in the interest costs/total costs).

Forward supplement

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

Extract from the Land Register for a piece of land. Available from the Land Registry.

Land Register Extract

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

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>. Comparis users benefit immediately from free advice from HypoPlus mortgage experts and can quickly and easily receive an economical individual financing offer tailored to their needs. 

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

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 mortgage type and the lender. Check the required period of notice in good time.

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

A LIBOR mortgage, also known as a money market mortgage, has a fixed repayment term. The interest rate is adjusted to reflect current market rates every 3 to 6 months. 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 the market rate every 3 to 6 months, depending on the terms of the mortgage. The repayment term of a LIBOR mortgage is also 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. The LIBOR mortgage comprises just two components: the LIBOR interest rate and the margin set by the bank. It is therefore very transparent.
<h3>How a LIBOR mortgage works</h3>
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 offer a choice of a 3, 6 or 12-month LIBOR. The repayment term is usually three to five years.
<h3 class="headline highlighted">Pros</h3>
 When interest rates are low, a LIBOR mortgage is the cheapest option. It has generally been the lowest-cost home financing choice 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.
<h3>Cons </h3>
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. 
<h3 class="headline highlighted">Protection against fluctuations</h3>
 Some lenders offer protection against interest rate fluctuations, in the form of a <a href="cap-zinskostenbegrenzung">CAP</a>. This sets 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 costs for this type of agreement must be paid at the beginning of the mortgage term. 
&nbsp;
<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 types</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a data-theme="p" data-role="button" data-ct-subtype="CrossSellingButton" data-ct-type="CrossSelling" data-ct-area="hyothekenZinsentwicklung" data-ct-id="hypotheken crossselling hypotheken zinsentwicklung" data-ct="true" class="icon-right strong button" href="/hypotheken/zinssatz/zinsentwicklung">Mortgage rate trends</a>
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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

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 percent: 
Value of property CHF 700,000; Mortgage CHF 400,000; Gross income CHF 100,000. The expenditures are CHF 27'000 (CHF 20,000 interest charge, CHF 7,000 maintenance costs). Assuming an income of CHF 100,000, an affordability of 27 percent results.
Example with loan-to-value-ratio exceeding 66 percent:
Value of property CHF 700,000; Mortgage CHF 500,000; Gross income CHF 100,000. The expenditures are 37,000 (CHF 25‘000 interest charge, CHF 5,000 maintenance costs). Assuming an income of CHF 100,000, an affordability of 37 percent results.Calculate affordability and loan-to-value ratio: <a href="/hypotheken/hypothekenrechner.aspx?popup=false" target="_blank">Mortgage calculator</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>

Variable-rate mortgage model - comparis.ch

variable-hypothek

After you have submitted your tax return, the tax authorities start the tax assessment process. Based on the information provided in the tax return, the authority determines your taxable income and assets and establishes how much tax you owe. 
The tax office's decision on the amount of tax owed is communicated in a tax assessment notice.&nbsp;
The tax payer has 30 days from receipt of the notice in which to lodge an appeal, if necessary. If no objections have been received during this period, the assessment decision becomes final. You are therefore advised to check your tax assessment notice as soon as you receive it &ndash; don&rsquo;t leave it too long.
&nbsp;

Tax assessment notice

veranlagungsverfuegung

Price at which the property can be sold under normal conditions. The market value is often officially estimated. It reflects the expected selling price.

Market value

verkehrswert

Compensation due to the provider in case of loss due to early repayment. Basically, two compensation models are used: either the charges are calculated based on the remaining term of the original agreement or on the difference in interest.

Early repayment charges

vorfaelligkeitspraemie

When taking out a new mortgage it can be advantageous to change your main bank (e.g. current account,&nbsp;custody account). Several providers then offer attractive reductions in interest.

Change of main bank

wechsel-hauptbankbeziehung

Value of all shares, bonds, government bonds, funds, etc. in your possession.

Securities

wertschriften

Yearly interest charge for use of mortgage financing, calculated by multiplying the amount of mortgage by the interest rate.

Interest charges (per annum)

zinskosten-pro-jahr

Or mortgage rate.
Costs of taking out mortgage credit. This must be repaid periodically (usually monthly) to the credit provider. The mortgage rate is affected by the provider's refinancing costs. The interest rate for a <a href="zweite-hypothek">2nd mortgage</a> is usually higher than that of a <a href="erste-hypothek">1st mortgage</a>. Higher interest rates are also charged for holiday homes, second homes, industrial and commercial buildings.

Interest rate

zinssatz

Interest rates for mortgages vary strongly. A comparison of the different banking products is worthwhile. Benefit from the Mortgage Market and Mortage Rate Overview by comparis.ch

The provider offers an interest reduction, if you change your main banking activities to its bank&nbsp;or conclude an insurance policy or another additional business for indirect amortisation.&nbsp;&nbsp;