What Types of Mortgages Available in Switzerland
The main types of mortgages in Switzerland are:
- Fixed-rate mortgages
This ensures that the interest rate remains the same throughout the duration of the mortgage and you repay a fixed amount every month. This means interest rates changes won’t affect you, which is good news if they rise, although you could miss out if they are lowered.
- Variable-rate mortgages
Interest rates continue to adjust with variable -rate mortgages so your payments can rise or fall accordingly.
- SARON mortgages
A Swiss Average Rate Overnight (SARON) mortgage is similar to a variable rate mortgage, although the difference is that rather than fluctuating throughout the duration of the mortgage, the interest rates change at the end of agreed rollover terms.