Recently signed this offer with M:
1.05% Saron (10%)
1.3% 5y (66%)
Due to being at max afforabilty only had one offer. So need to make more money in 5y
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It’s very likely the property will partially amortize itself due to a raise in prices, especially after the inputted rental value is gone.
Also: For this intrest rate difference, I wouldn’t have bothered with a package deal (but who knows maybe your 10% is more than my 100% 
).
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13 posts were split to a new topic: Removal of imputed rental value [2026]
Hello, I’m in need of a bit of advice.
We’re currently building a semi-detached house and the construction is about halfway through, with the watertight and airtight stage reached. There are about 6 months left for the construction.
We currently have a construction loan with UBS, at a 2.75%, and we have a meeting soon with them talk about consolidation.
The original plan was to go SARON after the end of the construction. It’s possible to consolidate with a SARON with UBS, but the conditions aren’t great (13 months to cancel, 1.15% margin the last time we discussed).
Meanwhile, at least when we concluded the loan at the beginning of the year, their fixed rates were competitive from what I could tell.
So it feels like we have 3 options:
- do not consolidate, pay the 2.75% for 6 more months, and look for a better SARON elsewhere
- consolidate with SARON, but immediately cancel it once the construction is finished. I don’t think this will land us in UBS good graces, but I might be overthinking it
- change the plan and go fixed term
I guess the first thing I need to do is to try to get competing offers. Does someone has experience with transforming a construction loan into a mortgage? For instance I was looking at Swissquote who appears to offer 0.77% margin on SARON, but from what I understand from their conditions they don’t support “new constructions”, which I presume is our case. So it doesn’t appear to be just like a renewing an existing mortgage.
I don’t know if I’m too early since the final amount is not yet known (although hopefully it won’t change too much now), how own funds are calculated and so on.
Option 2 seems like a bad idea, just more work and risks for marginal gains. Also I’m not very comfortable with cancelling the mortgage the moment it starts.
Option 3 looks more and more appealing too me. No having to redo the whole get a quote from multiple banks, with all the paperwork it entails. No risk of having a mismatch between how much UBS was willing to lend and the new mortgage and having to put up more cash. Also my partner is about to go on unpaid leave for about 2 months, and I’m not sure how it will impact the revenues calculations. Lastly, it looks like SARON margins have kept increasing, and I’m not sure I’ll find anything below 0.9%. At this rate, might as well go fixed from what I’ve seen.
Anyway, return of experience from transforming a construction loan into a mortgage and any comments are welcome.
Thanks!
I was consolidating to Saron Flex (it was 0.1% more than normal one, 1month notice), consolidated 3 times during construction, and then switched to fixed from another provider as soon as construction was over, the main reason for switching the provider was indirect amortization to 3a
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I don’t seem to have that option unfortunately, the UBS advisor explicitly called out the fact they don’t want us to consolidate with SARON just to leave right after, thus the 13 months minimum.
Was your construction loan with UBS as well?
If you want good rates, you have to shop around. You can do that now ( in the next 6 months) with option 1 or later by taking option 3 with short term mortgage (2-3 years).
yes, UBS but around 2 years ago
I’m wondering if anyone has information on withdrawing pillar 2 for a multi unit property where the owner inhabits one of the units? Is it possible? I’m getting conflicting information.
I would simply ask my current pension fund, as they will decide or not based on their own internal regulations
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As a little information for fellow forum users. Got a mortgage for 1.10.2026. Around CHF 1m, Property around CHF 1.5m. Offers were comparable (see below)
| ZKB | Migrosbank | UBS | Swiss Life | |
|---|---|---|---|---|
| Saron | 0.94 | 0.9 | 0.94 | |
| Fest | ||||
| 5y | 1.39 | 1.24 | 1.3 | 1.28 |
| 10y | 1.68 | 1.62 | 1.58 | 1.5 |
ZKB and Migrosbank is 6 months to cancel SARON, UBS is 13 months.
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Thank you very much for sharing.
Interesting, VIAC now asks 1.82% for 5y and 1.97% for 10y. Are they trying to actively pushing clients out or what’s going on with them? Has also someone been successful to extend the 0.65% Saron from VIAC for another period or are they hard on this?
Their “money market” option (I assume it’s the same as SARON) is 0.85%, surely worse than 0.65% but not too bad these days (yes, the fix offers are high → maybe one can negotiate something down?).
It says I need to “deposit 150 chf processing fee”. Not great.
Some time ago these two banks gave me the lowest evaluation of the property (some 20% below the price I paid, a steal at today’s prices).
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Sorry I was not clear. I am currently with VIAC and have a Saron margin of 0.65%. They increased it this or last year to 0.85%. So I was wondering if someone else who was on 0.65% was able to negotiate to keep it same.
Before we chose the Saron at VIAC I tried to negotiate the fixed rates but they were absolutely not open to discuss.
Anyway, my mortgage will only expire next year so I still have some time but I was really surprise why they have suddenly so high fixed rates (and the 150.-) to shy away clients.
Which offer did you take?
What are the conditions with 3a pledging, indirect amortisation?
1.24 is a nice rate today for 5y. My benchmark is Swissquote. They usually have competitive rates.
5y is now at 1.71% at SQ. They told me theses rates are absolutely non negociable.
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5y-rate of 1.24% of Migros seems really suspiciously low. Are you sure this value is correct? The published rate by Migros bank on their website is something like 1.83%. I know rates are negotiable but I am quite surprised by the big gap between the official published rate and the value you got.
Also the FuW 5-year hypo index is currently at 1.55%. A 5-year fixed rate at 1.24% in the current market conditions? Hard to believe
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That is quite interesting, because Migros bank gave me the highest valuation of the property we are buying. They evaluated the property at an even higher price than the listed price. The two other banks I asked gave me a much lower evaluation compared to the Migros bank.
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Yes - I tried getting a mortgage with Bank WIR (parent bank) and they offered so terrible rates that the sales person basically told me this. They already have “enough” mortgages.
I was able to secure a 0.8% + SARON without any ties or shenanigans - and I personally would never convolute/complicate deals like this. If you start switching your bank accounts, 3a etc. they might give you .1 or .2% less interest, but you lose a lot of flexibility and actually are invested in worse products (less of a risk with VIAC).
I’d personally rather pay 1% interest than 0.5%, but I’m all in on a bank.