How to choose the right mortgage for your property needs

Choosing a mortgage: a strategic decision

Choosing a mortgage is not just about comparing interest rates. It is a long‑term decision that directly impacts your financial situation over time.

A suitable mortgage should take into account:

• your financial capacity,

• your objectives,

• and your risk tolerance.

The main types of mortgages

In Switzerland, several mortgage models are available, each with its own characteristics.

Fixed-rate mortgage

A fixed-rate mortgage provides cost stability over a defined period.

• the interest rate is set at the outset,

• your costs remain stable throughout the term.

This option is particularly suited if you are looking for predictability and security.

SARON mortgage

A SARON mortgage is linked to the money market.

• the interest rate is adjusted regularly based on market conditions,

• costs may vary over time.

It may be relevant if you accept a degree of variability in exchange for flexibility.

A combined approach

In some cases, it is possible to combine different mortgage types.

This approach allows you to:

• spread risk,

• balance stability and flexibility.

Key criteria to consider

Choosing the right mortgage depends primarily on your personal situation.

Your financial capacity

Your mortgage must remain aligned with your budget.

• costs should remain sustainable over time,

• a financial buffer is essential to absorb changes.

Your risk tolerance

Some mortgage structures offer stability, while others provide flexibility.

Your choice depends on:

• your comfort with interest rate fluctuations,

• your ability to absorb higher costs.

Your holding horizon

The expected duration of property ownership is a key factor.

• a longer horizon may favour stability,

• a shorter horizon may require more flexibility.

Your personal situation

Your mortgage should align with:

• your professional situation,

• your life plans,

• potential changes in your income.

Looking beyond the interest rate

The interest rate is often seen as the key decision factor. However, it should not be considered in isolation.

The right choice is based on a balance between:

• cost,

• flexibility,

• security,

• and alignment with your overall financial strategy.

Adapting your mortgage over time

A mortgage decision is not necessarily fixed.

It is possible to:

• adjust its structure,

• adapt your strategy based on market developments or life changes.

This flexibility helps ensure that your financing remains appropriate over time.