With VIAC/WIR I could get to 0% downpayment if pillar 3a and VIAC invest have enough to cover the 10% own funds (16.66% in reality as WIR takes them at 60% of the investment value - this rule came in from Jan 2026) - that was a put off but I did consider to pay more in cash or use margin loan at IBKR to dump money in VIAC invest at higher TER than outside- it was a wash. But once / if I did that, and other 10% pledge from pillar 2 ( taken at 100% face value), they offered to make the ongoing indirect amortization to 10.8 k per year, less than 1% of property value. This meant not even amortising the second pillar pledge. I talked to the head of lending team twice and they even shared their calculation screen with me because I refused to believe what they said. The real deal breaker was 0.85% non-negotiable SARON for fixed 3 year term.
My current pledges (p3a+p2) combined are ~200k
Combined income is ~230k + 30K in bonus (peaking last year). Late buyers (Early 40s). Combined income was 100k 10 years ago and crossed 150k only 5 years ago. After 1.5 decades of frugality, and last 8 years of holding 100% equity investment, we have enough liquidity to buy with SARON.
Not a bank employee. Or ever worked with any bank or even as contractor.
No idea about rent, will get to know the eigenmietwert when I file taxes in 2027.
You made me curious and I checked. Another house in the area (10-15% smaller but recently renovated) is up for rent at ~3400 + nebenkosten on home gate.
Fixed rates compared to SWAP Rates from the ZKB Page give at 10y duration an implied bank margin of 0.8975. lowest at 5y at 0.8875 and highest at 3y at 0.9175
I think I will go with the full volume for the 10y.
I have already a 900k Mortgage on a business property (market value today probably 3.5mio) at Saron (0.500% Margin). Thats why I have a strong tendency to fix this one long term.
And nobody could confirm that there will be these 0.75% delta per annum for the duration of 10y
Iâve said it before but will repeat it: we are somewhat âspoiledâ with such low rates in Switzerland and shouldnât take it for granted. Of my remaining mortgage thereâs a portion SARON Flex with ultra low rates (did that more for flexibility so I could pay down further without issues given my wife and I want to be conservative and reduce LTV to our target in the coming years) but Iâm glad Iâve also fixed a large portion for many years at a rate where friends in other European countries would kill for. We sometimes get to hung up here in CH with the idea that 1.x% or something is âhighâ when itâs very low.
Once our fixed mortgage comes up for renewal and assuming rates are not high then (in which case Iâll go SARON and pay down), Iâll definitely be fixing for a very LONG term (also in light of age). Peace of mind. If you fix at a reasonable rate, I donât think anybody has ever lost sleep over that!
First time posting here. We are currently renewing our CHF 1.5 million mortgage and have received the following offers:
SARON: 0.88%
5-year fixed: 1.20%
8-year fixed: 1.38%
10-year fixed: 1.50%
Given the current uncertainty with Mr. Trump in office, we are leaning away from SARON. However, we are still very undecided between the 5-, 8-, and 10-year fixed options.
I would greatly appreciate any suggestions, experiences, or comparison points that could help us make the decision. Thank you!
Itâs just a logical pattern. If you want the cheapest option with the downside of volatility, take the shortest duration. If you want less volatility and more safety but pay for it with higher total costs, go for the longest duration.
Looks like rates have crept up past couple of quarters. Still, those are great interest %'s for a mortgage (compared to rest of Europe).
Without knowing your personal context (age, income, equity in house, desire to pay down, etc.) Iâd
Lock in 70% for 8 or 10 years = nice rate + peace of mind because you know exactly what youâre going to pay + no risk
Reminder Saron = brings your avg interet rate down + gives you freedom to pay back if you wish
Assuming 70% at 10 year fixed + 30% at Saron⊠that would give a blended of 1.31% and now that I look at that, you then might as well fix 100% for 8 years and have zero worry for 8 years, put your savings into investments and then in 8 years time you can always decide to pay down an amount
THese are not the absolute lowest rates from the past years, but if you fixed a good part youâll be in a really comfortable spot.
Iâd not do 5 years - itâs too short to provide real certainty and in my mind you want to use the time that a large part of your mortgage is at fixed rate to save/invest so you have flexibility when the time comes to renew the mortgage.
If you are in your 50âs, then Iâd even consider going for >10 years to delay risks related to job less and renewing mortgage once retired.
For disclosure: I have a large part of remaining fixed for roughly 8 years, rest SARON.
Thanks for sharing your perspective! For context, weâre in our 40s, have a combined income of 400K, and about 80% LTV. Weâre fairly conservative investors. We donât have much invested in stocks, in fact, we probably know more about mortgage rates than stock tickers. Most of our investments have gone into real estate, and two properties abroad worth roughly CHF 700k in total.
if you are heavy in real estate, then factors might be staging the timing of different mortgage renewals. using pension fund to save tax and pay off home. saron for flexibility to reduce debt. fixed rate to manage risk and time the renewal dates to space them out so any interest rate risk is spread out.
If you go 100% 10 year fixed i donât think youâll regret it unless you anticipate selling / moving before end of the 10 years
I suspect your bank will insist on amortizing down to 65% LTV anyway (as perhaps will you given conservative mindset) so your interest expenses will gradually decline anyway.
1.5% is a very good rate - not the best ever but very good for 10 years.
Reflecting in it longer i think itâs a good path and then during that time increasing 2nd pillar contributions to optimize tax and put more in long term equity appreciation (plus with option to withdraw later and pay down mortgage).
For reference, my wife and i paid down 30% when buying our property and built into our mortgage to amortize an additional 15% during first 5 years. On top we paid down an additional 10% from a severance at year 2. So all in all after 5 years ownership the LTV will be 45%. Our plan is to then drive that down an additional 10% to 35% before i reach retirement age and fix that remaining 35% for 10-15 years. Conservative approach but peace of mind is also valuable.
If you go heavy saron you may regret it. If you go heavy 8-10 year fixed, you surely wont at these rates.
No, this is ânot paying a premium for durationâ. A kind of self-insurance, see above. Market timing would be to assume that the rates are lowest now, or in 3 years.
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