wow 0.42 :o and I am at almost 2% 
Not sure if you have seen it - last week I got 1.11% for 10 years.
2% for a Saron mortgage ? that cannot be possible. For instance with swisslife currently you get 1.8% fix for 25 years which is the longest you can find on the market. Thus would be surprised someone is offering 2%.
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No, it’s a fixed one for 10 years 7.5 years ago.
if the interest rate continue so low I will go to SARON 100%
Ok makes sense ^^. I guess you’re looking forward to renewing it lol ! That being said if you bought 8 years ago your equity increased a lot, would not mind paying a bit more interests for that ahah.
You might want to check your contract, mine specifically allowed to go to SARON/LIBOR with a 3 months notice from a fixed mortgage w/o any penalty etc.
I will try, it will be a great solution that it will save me a lot of money. Last time that I’ve asked they told me that it was a penalty but… I can try once more I already have the NO
Could you tell me which company offered you this condition ?
Iiuc it’s a standard mortgage contract from Zuger KB.
If in 1 month it goes to +0.5%, what you are going to do? Wait that is falling again, or changed to fixed?
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Interest rate do not fluctuate so much. Normally there is a clear trend up and down and it take month or years to change.
You can keep it in SARON and if you see a clear trend up then change to fix.
Won’t work, similiar to market timing in the stock market. Nobody can predict future interest rates.
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I agree and then you are doing it with 500k or even more
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Even if we assume there is a clear trend upwards at some point, the bank will see that as well, in which case the fixed rates will increase much quicker than SARON. I.e., the fixed rate is essentially the expected rate over the contract period + a markup to compensate for the uncertainty of future rates. You can only win with fixed rates if future interest rates are higher than expected.
Fixed rates can still make sense to let the bank carry the risk of higher than expected interest rates, which reduces the volatility of your expenses.
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I see fixing the rate of a mortgage as some kind of insurance: you pay a certain premium (in the form of higher interest) in order to be safe from the danger of rising interest rates.
If you can afford to pay higher interest rates, by all means get a SARON mortgage!
If not… well, insure yourself against this risk (by taking a fixed mortgage).
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True and I think that it sounds suspicious that they started months ago with 10 years offer for fixed rate, then 9 and this week there is 8 years (0.8% with UBS).
I don’t think banks are stupid and for sure, they have a lot of people doing just this
They don’t give money for free with a nice offer…
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So, they are doing this because it looks interest rates will stay low? So better a SARON?
I have an offer for 0.6% SARON vs 0.8% fixed for 8 years. I think we pick SARON, but I’m never 100% what to do
I am currently checking different offers (my first time). Trying not to invest too much time. I will most likely go for a 5y fixed-rate option @ approx. 0.6%, and most likely with Valuu (“powered” by PostFinance), they offer a CHF 4k cash bonus in September, which makes it very interesting for me. Supposedly, they also have a Black Friday bonus (CHF 5k), but I need to get my mortgage now. And no, I am not affiliated with them 
In my opinion, it’s the opposite. If they give you a good deal for 8 years (0.8%), they think that after, the interest rate will go higher than the present 10 years.
If the interest rate of those two years is going to be 1.7% (so to renew the next 10 years), you will spend the same as 10 years for 0.98%
Thanks for the explanation, I see the point now