It‘s only a matter of months till we get 10 years for below 1% in my opinion.
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Following your intuition on the trend of the Swap 10 years, I would be tempted to take a 100% SARON mortgage and swap it to a 10 years fixed rate in like 6 months to benefit from a 0.9ish rate for the next 10 years… Does anyone know if VIAC charges a lot of fees to go from a SARON to a fixed rate?
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If we get a 50 bp cut in 2 weeks, I d say even end of December is possible lol.
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Hi all - 2 more questions:
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Vaud Canton has 5% notary related charges. The property dealer suggested that the seller can pay those charges and the transaction can then be for Price*1.05. This would allow us to get higher mortgage and reduce upfront cash payment for notary. Any thoughts or prior experience on this front?
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My wife is 100% self-employed with a UN organization on a 3 year contract. Unable to get a clear answer from banks on how her income would be considered for Mortgage calculations.
I think it’s free 
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Not if it’s your primary home. The property dealer is trying to scam you.
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This is what I have from property dealer - transfer duties amount to 3.3%, land registry fees 0.7% which gives 4% in taxes. After that, the notary will cost around 0.5% of the sale price.
Other dealers have also mentioned similar 5% figure. So don’t think she is trying to scam us. It was more of a suggestion given our financial situation. If 5% charges are accurate, seems like a good (if legal) way to reduce downpayment to 21% (20% + 20% of 5%) from 25% (20% +5%)?
I can’t find anything online stating there’s exemptions for land registry tax, transfer tax or notary fees in the canton of Vaud for primary homes.
Do you have more information on that? That’d be very interesting info.
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Why should I keep my SARON+0.8 margin (currently paying 2.01%, still waiting for them to digest the last rate cut, I suppose will happen EOY) when the same bank now offers (on the website, so with a margin of negotiation) 10y fixed for 1.3%? I can change now at end of year with 10 days notice, next time would be end of March.
All the Banks i ve worked with do quarterly interest payment and 3 month saron compounding. In terms of calculation I don’t think there’s much difference between 12 periods of 1 month compounding vs 4 of 3 month compounding since the saron rate is anyway calculated daily. I d be curious to know which bank offers a 1 month compounding ?
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Be patient and pay more for still a few month.
1% 10y fixed is coming back as stated by cortana
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Based on my experience the compounded saron is only known at the end of the period based on the daily rates of the observation window (in that case the last 3 months). In that case if there’s a rate cut in the middle of the period you still benefit from it.
I’ve checked the ZKB website and they actually describe what I m saying, does not matter if the observation period is 1 or 3 months.
- Der Zinssatz wird für jede Zinsperiode jeweils zwei Bankwerktage vor dem Ende der Zinsperiode fixiert und dem Darlehensnehmer per Ende der Zinsperiode belastet.
The legend of the ZKB illustration is quite confusing to me. The light green line represents the calculated SARON rate at the end of the period and on top they add the margin, while the dark green one is the daily SARON rate and I do believe that the comment in brackets related to the fact that the rate is only know at the end of the period should apply to the light green line and not the dark green curve. For instance during the period 3 there’s a rate hike and as you see the green line finishes below the dark green one because you benefit from the blended rate and of course there’s a contribution of the initial negative rate days in the result. If the rate had been fixed at the start of the period the rate would have stayed negative for the whole duration.
LIBOR used to work the way you describe it, i.e. with a fixing date for the period but SARON is completely different.
Swap rate for 10 years is down to 0.32%. Heading down to 0%. Maybe we‘ll really see 0.90-0.99% 10Y mortgages by the end of this year 
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Yes, I can confirm it is free, and it will be converted every 3 months period, so typically, whether you want to change it on January the 5th or March 20th, it will become a fixed rate on April 1st. I’m gonna go for it since I can get a bit more visibility in the coming months on the swap and Saron projections.
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Where did you find this graph? Thanks for sharing
So Raiffeisen on their last forecast announe SNB rate at 0% on 31.12.2025.
I am still ok paying more with SARON than fixed and patiently waiting for null rates to come back again 
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Yeah you might end up with 0.6-0.8% that way. And who knows, maybe we’ll stay there for several years again.
hello guys. The construction is going to be finished by Summer 2026. So now with the expectation(or just hope) of rate going further down next year, between
- the choice of fixing the forward interest rate right now and
- the choice of waiting a bit longer until the construction finished (or half year before that) and then fix the rate,
Is it obvious that I should go with the second choice, aka wait? Any input?
That’s what I (and the banks) thought when the rate offered to me for a 10-year fluctuated between 0.7% and 0.8% (maybe 0.6% on the billboards or for others?) a few years ago.
And here I am, lurking again with my big, expensive SARON mortgage, rethinking my life choices all over again 
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