Fixed today with existing bank for 1.5%. Decided it wasn’t worth the hassle of switching provider for 0.1%
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If you plan to stay at your place in the next 10y you probably made a wise decision.
We’re not in this case and still young with good abilities to take risks so we’ll carry on with SARON. One more year to wait to have it again cheaper than fixed (normally!!)
It’s actually a rental. I was going to sell it but the sale fell through. Otherwise, I would have fixed at 1% at the time!
1.5% for fixing how many years if I may ask?
10 years.
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I am in the stage of choosing which bank to have the mortgage. We won’t need to fix it now because the construction will only be finished in summer 2026. But I guess once I choose the bank now to give the payment promise, it won’t make sense to switch 1.5 years later. And since we don’t need to fix it now, I guess the absolute number of the rate now doesn’t matter much for us. But the relative number, aka higher and lower would actually matter.
Currently I am getting one bank offering 1.45% for fixing 5 years and 1.65% for fixing 10 years. How does that look like? And I see today on moneypark.ch and on hypotheke.ch the rate for 10 years are 1.33% and 1.42%, respectively. How realistic are these numbers for buy-to-let property ?
Thank you in advance for the information.
hello @FrankenStache, I guess I can learn a lot from you. How realistic are they? For a buy-to-let apartment, would that tends to be higher rate or it doesn’t change the rate? Currently I see on hypotheke.ch (10y = 1.42%) and moneypark.ch (10y = 1.33%) and 10year swap rate 0.5925%
one bank offering us 1.65% for fixing 10 years. After reading the posts here, I seems like 1.4% should be my goal currently?
Not realistic for buy-to-let. The rates you see online are based on top notch property condition (self used) and based on a very solid income situation.
Thank you so much for the reply. How should I set up the realistic expectation then ?
I generally agree with xerox. Doubt you can get these rates on a buy-to-let, but certainly anything is possible depending on your income/situation
Why not reach out to one of the mortgage brokers (assuming it’s a no-obligation quote) and find out what kind of “deal” they can get you? Be sure to make sure it’s apples to apples (terms and conditions) when you compare them to what banks are offering you directly.
thanks! Yes I am contacting the mortgage brokers. On the same time, trying to collect some expectations here as well. It doesn’t hurt to do things in parallel. 
For buy-to-let, can I roughly put 0.1% (or 0.2%?) on top of the displayed rates on the website at hypotheke.ch and/or moneypark.ch?
We’re spoiled in Switzerland because that - for most others in the world - is such an incredibly low rate.
I would consider doing e.g. 50% fixed / 50% SARON
The fixed piece gives you certainty with a very nice rate
SARON gives you flexibility
If I was offered anything in the range of 1.35-1.55 for a 10y I would think it’s a good deal in that scenario.
BUT
I don’t know what kind of risk premium they add for buy-to-let, so really I’m just guessing.
The only way to find out is to get quotes (and hopefully you can fill us in as to what kinds of offers they make in that scenario).
Good luck!!
For once, they normally request more downpayment (25% at least for most banks)…
I did that, got the payment promise from bank 1, and 1.5 years later did the mortgage with bank 2. Was certainly possible, just a bit of extra admin work and needed the seller’s ok, as they had to accept a new payment promise from bank 2.
oh wow. THanks your for the information. I also think it would be possible, but you would have to pay a “penalty” fee to bank 1?
The client advisor told me that they will charge a penalty of 300.-, but only if the paperwork for the actual mortgage was already signed. This was not yet the case for us, as they checked our finances, put our capital in a locked account and provided the payment promise, but we didn’t sign the actual mortgage contract yet.
As an alternative, we could have also go trough the buying process with bank 1 and sign a Saron mortgage with a 3 month cancelation term, and then switch immediately after to bank 2.
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hmm. Interesting. ZKB told me that penalty would be 1000.- after the payment promise.
But the saron mortgage with 3 month cancelation is actually an amazing idea, if I ever need to swtich.
This is what I previously had. You pay a premium over a non-flexible SARON (0.1% in my case).
I find it a bit outrageous that the trend is now to have SARON mortgages with fixed terms (e.g. 5 years) and penalties for early termination.
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People that fix such rates only have to blame themselves and it’s a big big sign that they don’t understand the product they are buying.
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