The right financing for your project

Fixed-rate mortgages

Fixed‑rate mortgages are highly popular in Switzerland. They offer long‑term stability with a fixed interest rate and a fixed term, typically between one and ten years, protecting borrowers from rising rates, although it also means they cannot benefit from potential rate reductions.

While early termination may incur fees, this model suits borrowers seeking predictability. In Switzerland, around four out of five mortgages follow this model.

Variable-rate mortgages

Variable‑rate mortgages come with no fixed term and apply an interest rate that fluctuates according to market conditions. They can generally be terminated with six months’ notice, offering substantial flexibility to the borrower. This model allows homeowners to benefit from potential decreases in interest rates, but it also exposes them to the risk of increases.

It is a suitable option for individuals who value adaptability in their repayment strategy.

SARON mortgages

SARON (Swiss Average Rate Overnight) mortgages are linked to an interest rate based on real market transactions, allowing borrowers to benefit from low or falling rates while requiring readiness to absorb upward fluctuations.

Usually structured in three‑month cycles, they are a compelling option for borrowers who want transparency and responsiveness to market movements.‌

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Understanding the mortgage certificate

A mortgage is a loan granted to a buyer by a bank, an insurance company, a pension fund, or even a private individual. In return, the borrower pledges the property as security for the creditor. This pledge is formalised through a mortgage certificate. If the borrower fails to meet their obligations, such as paying interest or repaying the loan, the creditor is legally entitled to seize and sell the property in order to recover the outstanding amount.

The mortgage certificate is drawn up by a notary based on the information provided by the lending institution (bank, insurance company, pension fund, etc.).

For example, if a lender agrees to finance a CHF 500,000 loan for the purchase of an apartment, it transfers this amount to the notary, who then prepares the official deed. Notary fees are paid by the buyer according to regulated tariffs.

At Piguet Galland, we provide a personalised and seamless experience: from estimating your property’s value to coordinating directly with the notary, drafting the mortgage deed, and finalising the purchase contract. You benefit from simplified administration and comprehensive guidance throughout the entire process.‌

Controlling the cost of your mortgage

The cost of a mortgage depends on several factors, and understanding these elements is essential for effective financial planning. Multiple variables influence the overall amount you will pay.

Interest rate

The interest rate plays a central role, as any increase directly raises the total cost of your mortgage. The loan amount is equally important, as higher borrowing leads to higher repayments and a greater total cost.‌

You should also consider the additional expenses linked to the mortgage, such as notary fees, administrative charges, and insurance, which can significantly influence the final cost. Developing the right repayment strategy will help you manage your mortgage in the most effective way.
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Direct amortisation

With direct amortisation, you repay a fixed amount at regular intervals, gradually reducing both your debt and your interest charges. Careful planning is essential to optimise your repayment strategy and make the most of potential tax advantages.‌

Indirect amortisation

With indirect amortisation, your mortgage debt remains unchanged while the amortisation amount is paid into a private pension solution such as pillar 3a or 3b.

When linked to an investment fund, this collateral can generate returns over time. Upon retirement, the accumulated capital is withdrawn and used to repay the mortgage.‌

While this method does not reduce the debt during the mortgage term, it provides significant tax benefits. It is essential to fully understand its implications to optimise your overall financial strategy.‌

Lombard loan

The Lombard loan is a form of secured, fixed‑rate financing granted in exchange for liquid assets, such as shares, bonds or investment funds, up to a certain percentage of their value.

Lombard loans and mortgages serve different purposes and respond to distinct needs. The right solution for you will depend on your financial objectives, the composition of your assets, and your repayment capacity.

Our financing specialists will analyse your situation to identify the most suitable option. They will design a tailor‑made solution, combining different financing tools to optimise your investment strategy.

Ready to make the move?

Our experts guide you through every stage of your financing journey with a fully personalised approach, designed to bring clarity, confidence and peace of mind to your entire project.‌

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Episode #1

Buying a home: a winning decision

Let this series accompany you, step by step, on your journey to owning your primary residence.

Go to Episode 1

Episode #2

Knowing what you want

Building your own home is a major investment that deserves careful consideration of your needs and aspirations.

Go to Episode 2

Episode #3

Setting the right budget

Determine the maximum amount you can reasonably commit to acquiring your primary residence, taking into account your overall financial position.

Go to episode 3

Episode #4

The right financing for your project

From traditional mortgages to Lombard loans, explore the key features of fixed, variable and SARON-based interest rates.

Episode #5

Understanding property taxes

Becoming a homeowner is a major milestone that comes with specific tax considerations. Purchasing a property involves a range of tax implications that should be carefully assessed.

Go to Episode 5

What our clients say about us.

Piguet Galland offered us a number of different scenarios to help us through this major change in life, retirement.
Happiness is knowing that I have someone who will bring their expertise to advise me and ensure my life is carefree.
At Piguet Galland, the human factor takes center stage. We genuinely listen to understand and provide solutions, not merely to sell."
I wanted to purchase and renovate a house through an auction, which required immediate payment. Fortunately, your company performed exceptionally well."
Piguet Galland is the financial partner that's close to my heart. I have complete trust in them. In this bank, you get to know them on a personal level, and that's of utmost importance."
The aspect of the Bank that resonated with me in the past and to this day is trust, which is conveyed through a sense of closeness and, most importantly, a dedicated point of contact."
What I value most about Piguet Galland is the service and the trust-based relationship I have built with the various advisors I have worked with over the past thirteen years, all of whom have consistently been excellent."
Throughout the years of building a trusting relationship with Piguet Galland, I have realized that a bank can be a lifelong partner for significant milestones."