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Which type of mortgage should you choose in Switzerland in 2025? Insights from your broker

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Mortgage in Switzerland: fixed rate, variable rate, SARON rate… which one to choose?

Have you found the property of your dreams? Congratulations! But before popping the champagne, one crucial step awaitsyou:choosing your mortgage.

And here, it’s not always easy to navigate between fixed rates,SARON rates or variable rates…
Here’s a clear and quick overview of the situation.
 

The Swiss mortgage landscape has undergone significant changes in recent years, notably with the introduction of the SARON rate replacing LIBOR. In 2025, borrowers have several options to finance their property, each with advantages and disadvantages depending on their profile and market conditions.

Fixed rate, SARON rate or variable rate: what are the differences?

This is THE big question every future buyer asks. The type ofmortgage rate you choose will directly affect your monthly budget and your long-term strategy.

1 – Fixed rate

This is the choice of peace of mind. You sign today for a rate that will remain unchanged for 5, 10, or even 15 years.

  • ✔️ Ideal for those who value stability
  • ✔️ No surprises with monthly payments
  • ✔️ Easy to integrate into a family or investor budget
  • ❗ Less advantageous if rates drop significantly
  • ❗ Exit conditions can be costly (in case of early resale)

2 – SARON rate

Flexibility and adaptability are the hallmarks of the SARON rate (Swiss Average Rate Overnight), indexed to short-term Swiss money market rates.

  • ✔️ Often lower than the fixed rate (at least initially)
  • ✔️ Benefit from a low interest rate environment
  • ✔️ Possibility to renegotiate regularly
  • ❗ Payments can fluctuate from one quarter to the next
  • ❗ Less transparent for those who like full control

3 – Variable rate

Less common today, the variable rate is usually offered under specific conditions by certain banks. It evolves according to an index, like SARON, but with its own terms.

  • ✔️ Good flexibility in case of early repayment
  • ✔️ Can be suitable for very short durations
  • ❗ Rarely offered nowadays
  • ❗ Less predictable than other options

✅In summary: Which type of mortgage rate is right for you?

Each type of rate has its advantages… and its limits. The key is to choose the one that matches your project, your profile, and your vision for the future.
 

Fixed rate:You value stability and want to keep your budget under control without surprises for several years.
SARON rate:You are comfortable with a bit of volatility and believe that rates will remain low.
Variable rate:You have a short-term project or plan to resell/repay in the coming years.

Our advice? Don’t choose your rate alone, based on intuition or an online comparison tool. Talk to a professional: our brokerage teams are at your disposal to guide you towards the right tailor-made financing plan.

What are the new regulations in 2025 and their impact on mortgage borrowers?

 

Since January 1st, 2025, the rules of the game have slightly changed for banks, with the implementation of the latest Basel III requirements. In short: banks must be more cautious with mortgage lending, which may affect the conditions they offer you.

Here’s what changes for you as a borrower:

  • ⚠️ If you borrow more than 60% of the property’s value, some banks will require additional guarantees.
  • Life insurance policies and other financial products are less valued in the calculation of equity capital.
  • The rate offered may be personalized according to your risk profile (loan amount, down payment, income, type of property…).

In summary: more than ever, you need to prepare your file carefully and negotiate with the right tools in hand.


 

What are the mortgage rate trends in Switzerland in 2025?

Before signing, you may be asking yourself: “Is this the right moment, the right trend?” And rightly so.

As brokers, we would answer that it’s not just about getting a good rate — it’s about the right timing, the right profile, and the right structure.

For an overview of current mortgage rate trends in Switzerland in 2025, please consult online mortgage comparison platforms such as comparis.ch.

Need tailored advice or have another question about the real estate market? Our teams are here to help.