Notary fees by canton in Switzerland: how much should you budget for a property purchase ?
April 30, 2026
What is a fixed-rate mortgage in Switzerland ?
May 8, 2026Notary fees by canton in Switzerland: how much should you budget for a property purchase ?
April 30, 2026What is a fixed-rate mortgage in Switzerland ?
May 8, 2026
The different types of property mortgages in Switzerland
Types of property mortgages in Switzerland: fixed-rate, SARON, or variable? What you need to know:
In Switzerland, the term mortgage is often used to refer to a property loan. Technically, it is a real estate lien that serves as collateral for the bank.
Choosing a mortgage is not just about comparing the lowest interest rate.
In Switzerland, several models exist, each with its own advantages, limitations, and level of risk.
The right choice depends on your financial situation, your property project, and your need for security.
Banks calculate housing costs using a theoretical interest rate of 5%, even if actual rates are lower. They also add amortisation and maintenance costs, often estimated at 1% of the property value per year. The total should generally not exceed 33% of gross income.
The 33% rule: in Switzerland, banks generally check that housing-related costs do not exceed approximately one third of the household’s income.
Equity capital can come from savings, securities, an advance on inheritance, land, or, in some cases, the pension fund.
As a general rule, buying a property in Switzerland requires around 20% equity capital. The mortgage can then finance up to 80% of the purchase price.
Other financial commitments, such as a leasing agreement or a personal loan, can also influence your borrowing capacity.
To assess financial affordability, Swiss banks often use a theoretical rate higher than the rate actually offered. This allows them to check whether the household could withstand an increase in interest rates.
The fixed-rate mortgage
The fixed-rate mortgage is the most common model for people looking for stability.
The interest rate is set in advance for a defined term, often between 2 and 15 years depending on the offers from financial institutions.
Its main advantage is security: you know the amount of your mortgage costs in advance.
It is a reassuring solution if you want to plan your budget over several years.
However, this security comes with a trade-off.
If you want to sell your property or terminate your mortgage before maturity, exit fees may apply.
The SARON mortgage
The SARON mortgage is linked to the Swiss money market.
The SARON mortgage is concluded for a fixed term, but its rate is reviewed regularly, for example every 3 or 6 months depending on the conditions agreed with the lender.
SARON is a reference rate in Swiss francs published notably by SIX and monitored by the Swiss National Bank.
It replaced LIBOR for money market mortgages.
This type of mortgage can be attractive if you accept a certain variation in the rate.
It often offers more flexibility than a fixed-rate mortgage, but costs may move up or down depending on market conditions. See: the data portal of the Swiss National Bank.
The variable-rate mortgage
A variable-rate mortgage is a mortgage loan whose interest rate is not fixed for a defined term.
Its rate can be adjusted by the bank according to market developments.
It may also allow you to benefit from a decrease in interest rates, since the rate can be adjusted downward depending on market conditions.
It may be suitable for someone who wants to maintain flexibility, for example before a sale, refinancing, or a change in circumstances.
However, it offers less visibility than a fixed-rate mortgage.
Because the rate can change, your mortgage costs may increase. This makes budget planning less predictable than with a fixed-rate mortgage.
The mixed mortgage
A mixed mortgage consists of combining several financing models, for example one part with a fixed rate and another part with SARON or a variable rate.
Its main advantage is to spread the risks. It allows you to secure part of your budget while maintaining a certain degree of flexibility on the other part.
It can be attractive if you want to benefit from potential decreases in interest rates without completely giving up the stability of a fixed-rate mortgage.
However, it is more complex to manage. The different tranches may have different terms, rates, and maturity dates.
It can also complicate a resale or a change of bank if the maturity dates are not aligned.
This solution allows you to balance security and opportunities, but it requires a good analysis of your financial capacity.
First mortgage, second mortgage, and amortisation
In Switzerland, buying a property generally requires an equity contribution.
The official ch.ch portal states that, in principle, you need around 20% equity capital to finance the purchase of a home.
In Switzerland, mortgage financing is often divided between a first mortgage, up to around 65% of the property value, and a second mortgage, which covers the remaining portion above that level. The second mortgage generally has to be amortised.
The second mortgage generally has to be amortised within 15 years and before retirement.
Direct or indirect amortisation
Amortisation can be direct or indirect. In the first case, the debt decreases gradually. In the second, payments are placed into a pension account, for example a pillar 3a account, before being used to repay the mortgage at maturity.
Direct amortisation: the borrower regularly repays part of the loan. The debt gradually decreases, as do the interest payments. In return, the tax deductions linked to interest also decrease.
Indirect amortisation: the debt remains stable. Payments are made into a pension account, for example a pillar 3a account, and are later used to repay the mortgage. This method may offer tax advantages.
Which type of mortgage should you choose?
There is no single answer.
If you are looking for stability, a fixed-rate mortgage may be suitable.
If you accept more variation, SARON may be interesting.
If you are planning to sell soon, a flexible solution may be preferable.
If you want to balance risks, a mixed mortgage may be considered.
Before choosing, it is important to compare monthly payments, the term, termination conditions, and the impact on your overall budget.
Calculate your financing capacity
Before committing, you can use our mortgage calculator to estimate your monthly payments and better understand the impact of property financing on your budget. Estimate your mortgage with the Immoprice mortgage calculator:
Do you already own a property?
If you are considering selling a property that is still mortgaged, it is useful to know its current value.
This helps you estimate whether the potential sale price covers the mortgage balance, any potential costs, and your future property project.
Estimate the value of your property with Immoprice: