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Types of mortgages

In Switzerland, there are different types of mortgages that vary by interest rate, term, and flexibility.

Selecting the mortgage that is right for you depends on your personal and financial circumstances as well as your preferences in terms of interest rates and predictability. These are the most common types of mortgages:

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Overview of mortgage types

1. Fixed-rate mortgage
2. SARON mortgage
3. Variable mortgage
4. Construction loan
5. Forward mortgage
6. Green mortgage
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  • Fixed interest rate for the entire term of the mortgage.
  • Maturities of between 2 to 15 years, typically 5 or 10 years.
  • Predictability, as interest rate costs remain unchanged.
  • Protection against rising interest rates.
  • Predictable monthly cost.
  • No flexibility in case of early redemption (high early redemption penalties).
  • You do not benefit if interest rates decline.

Videos on "Mortgage types"

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Financing your own home

Learn what is important when financing your own home – from selecting the right mortgage to developing a long-term, sustainable financing strategy. Careful planning and regular reviews are crucial for your financial success. smzh also provides you with comprehensive support on tax matters relating to marriage, pension provision, and assets – to ensure focused and holistic financial planning.

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Construction loan

Learn how to use a construction loan flexibly for your construction project and discover the advantages it offers versus a traditional mortgage. With the right planning – from the equity ratio to the utilization of the credit facility – you can specifically manage costs and risks. smzh is also by your side to advise you on tax matters relating to marriage, pension provision, and assets – for a well-thought-out and future-oriented financial plan.

(in German)

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Real estate purchase

Discover what is important when buying and selling real estate in Switzerland. From initial planning and property search to contract execution: receive valuable tips on financing options, contract negotiations, and legal requirements to ensure a secure and successful property transaction.

(in German)

Document library

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Financing your own home

Whether you are buying, renovating, or refinancing a mortgage, we offer customized financing solutions tailored to your circumstances. Learn how to optimally combine your equity and mortgage – to create a home that truly suits your needs.

(in German)

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Construction loan

A construction loan enables you to continuously finance your construction project – tailor-made, with no immediate amortizations. Perfect for new construction, reconstruction, or building extensions: You retain full control over costs and liquidity in every construction phase.

(in German)

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Buying or selling real estate in Switzerland

Whether you are buying or selling, a real estate transaction in Switzerland requires in-depth knowledge, legal clarity, and careful planning. Our fact sheet provides an overview of the key things you should know – to ensure a safe and smooth transaction process.

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Latest market updates

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Interest rates at a low

The SNB has decided – what this means for your mortgage.

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SNB interest rates at 0%, mortgage rates low

What the SNB interest rate decision means for potential homeowners – find out now.

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You are still saving for an own home, but real estate prices keep rising?

What the SNB interest rate decision means for households that are still saving to buy a home – learn more now.

News

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Assessment of the real estate market

The SNB’s key interest rate cut is stimulating growth in the construction sector – despite a subdued economic outlook. Investment properties remain in demand, with the first signs of declining acquisition yields indicating growing capital pressure. The owner-occupied housing market remains stable with positive price momentum. There is also no end in sight to the upward trend in rents: in 2025, regional increases of up to 4% are possible.

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Assessment of interest rate and mortgage market July 2025

The yield curve has largely normalized following the SNB’s key interest rate cut. While SARON mortgages have reached their low point, fixed-rate mortgages remain attractive across all maturities. However, geopolitical tensions and subdued economic prospects raise questions about future developments.

Monthly updates on real estate and mortgages. Subscribe now and identify opportunities early.

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smzh for you

Our experts provide you with comprehensive advice on choosing the right mortgage:

  • Analysis of your needs: We determine which type of mortgage best suits your personal situation and interest rate expectations.
  • Market comparison: We compare terms from various providers, including banks, insurance companies, and pension funds.
  • Individual solution: Together we develop a customized strategy that takes your financial goals and planning requirements into account.

We handle questions such as those shown on the right on a daily basis. You don't need to deal with them by yourself – our 360° Check-Up is free of charge and non-binding.

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This depends on your personal circumstances, your risk tolerance, and the interest rate you envision. A fixed-rate mortgage provides security, while a SARON mortgage allows for flexibility.

Yes, you can split your mortgage into various tranches, e.g., a fixed-rate mortgage and a SARON mortgage, to benefit from the advantages both types provide.

A green mortgage is advisable if you would like to finance energy-efficient measures, e.g., new heating or solar panels.

A fixed-rate mortgage provides stable interest rates, while rates may rise in a SARON mortgage or variable mortgage.

Forward mortgages include a premium that involves slightly higher interest rates. However, this slightly higher level may be worth accepting if you expect interest rates to rise going forward.