The different types of property mortgages in Switzerland
May 5, 2026
What is a SARON mortgage in Switzerland ?
May 8, 2026The different types of property mortgages in Switzerland
May 5, 2026What is a SARON mortgage in Switzerland ?
May 8, 2026
What is a fixed-rate mortgage in Switzerland ?
What is a fixed-rate mortgage in Switzerland?
A fixed-rate mortgage is one of the most common forms of property financing in Switzerland.
It allows you to borrow money to buy or finance a property, with an interest rate set in advance for a defined term.
In practical terms, this means that the rate does not change throughout the entire duration of the contract.
Whether market rates rise or fall, you continue to pay the rate agreed at the start.
How does a fixed-rate mortgage work?
When the contract is signed, three elements are generally defined:
The amount borrowed, the mortgage term, and the interest rate applied.
For example, if you take out a mortgage of CHF 500,000 at a fixed rate of 2% over 10 years, the annual interest amounts to CHF 10,000.
This represents around CHF 833 per month.
Throughout the entire duration of the contract, this amount remains stable. This stability makes it easier to plan your budget and avoid unpleasant surprises.
The advantages of a fixed-rate mortgage
The main advantage of a fixed-rate mortgage is security.
With this type of mortgage, interest costs remain predictable throughout the entire duration of the contract.
It is an attractive solution if you want to plan your budget over several years and protect yourself against a potential rise in interest rates.
It is particularly suitable for homeowners who prioritize stability over flexibility.
In Switzerland, buying a home generally requires a share of equity capital and a share of mortgage financing.
The official portal ch.ch also highlights the importance of carefully planning your property budget before making a purchase.
The limitations of a fixed-rate mortgage
A fixed-rate mortgage offers stability, but it is also less flexible than other models.
If you want to repay or terminate your mortgage before the end of the contract, for example because you are selling your house or apartment, the bank may charge an early termination fee.
This penalty can be significant depending on the remaining term, the agreed interest rate, and market conditions.
Another limitation: if interest rates fall after signing, you do not automatically benefit from this decrease.
You remain tied to the rate set at the start until the contract reaches maturity.
The limitations of a fixed-rate mortgage
A fixed-rate mortgage offers stability, but it is also less flexible than other models.
If you want to repay or terminate your mortgage before the end of the contract, for example because you are selling your house or apartment, the bank may charge an early termination fee.
This penalty can be significant depending on the remaining term, the agreed interest rate, and market conditions.
Another limitation: if interest rates fall after signing, you do not automatically benefit from this decrease.
You remain tied to the rate set at the start until the contract reaches maturity.
What happens if the property is sold?
If you are considering selling a property that is still financed with a fixed-rate mortgage, it is important to check the terms of your contract before putting the property on the market.
You should know the remaining mortgage balance, the remaining term of the contract, and any potential exit fees.
In some cases, the mortgage is repaid using the proceeds from the sale.
In other situations, it may be possible to transfer the mortgage to a new property if you buy another home and if the bank accepts.
FINMA, the Swiss Financial Market Supervisory Authority, closely monitors the Swiss mortgage market because of its importance for banks and the real estate market.
Why have your property valued before selling?
Before selling a property with an existing mortgage, a property valuation helps you better anticipate the next steps.
It helps you determine whether the likely sale price can cover the mortgage balance, the costs related to the sale, and any potential early termination fee.
It is also an important step in defining a realistic sales strategy.
With Immoprice, you can obtain a valuation of your house or apartment and compare several real estate agents in order to sell under the best possible conditions.
In summary
A fixed-rate mortgage is a financing solution appreciated in Switzerland for its stability.
It allows you to know your interest costs in advance and protect yourself against rising interest rates.
In return, it offers less flexibility, particularly in the event of an early sale of the property.
Before selling, it is therefore recommended to check the terms of your mortgage and have your property valued.
Are you considering selling your house or apartment? Immoprice helps you value your property and compare real estate agents suited to your project.
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: