Mortgage comparison

Our mortgage comparison provides you with a good overview. To assess your individual situation, we recommend a free initial consultation with a mortgage advisor from MY HYPOTHECA.

Obtain numerous offers or speak to an independent mortgage broker, who will do the work for you.

Mortgage interest rates vary between banks for several reasons. Each bank calculates its rates based on different factors: its own refinancing costs, risk assessment, operational expenses, and desired profit margin. Large banks often have different refinancing conditions than regional banks or online providers. Business strategy and specialization also play a role – some banks position themselves as low-interest providers to gain market share, while others focus on service and advisory quality. With more than 50 providers, these differences can be significant, which is why a systematic mortgage comparison almost always pays off. The savings between the most expensive and the cheapest provider for a 10-year fixed mortgage can easily amount to several thousand francs.

The mortgage interest rate is determined by various personal and market-related factors. The most important personal factors include your creditworthiness, the available equity, the loan-to-value ratio (the relationship between the mortgage and the property value), and affordability (your income in relation to housing costs). As a rule, the annual burden from interest, ancillary costs, and amortization must not exceed 39.9% of your gross annual income.

Market factors such as general interest rate trends, the policies of the Swiss National Bank, and competition among banks also play a decisive role. The chosen term and the mortgage model (fixed or variable) additionally have a significant impact on the interest rate.

In addition to mortgage interest, several additional costs can arise that are often overlooked. The cost range for the mortgage certificate (Schuldbrief) is usually between 0.1 and 0.3 percent of the mortgage amount.

Other expenses include processing fees, property appraisal fees, notary fees, and land registry charges. These fees vary from canton to canton and can amount to up to five percent of the purchase price for the buyer. During the mortgage term, costs may also arise for early termination clauses, changes to the mortgage, or additional collateral requirements. The advisors at MY HYPOTHECA guide you through the entire process so that you avoid any unpleasant surprises.

The term of the mortgage has a direct impact on the interest rate. In general, the following applies: the longer the term, the higher the interest rate tends to be, as the bank takes on greater risk. Short terms (1–3 years) usually come with slightly lower rates, but you bear the risk of rising interest rates. Longer terms offer more planning security. It is important to align the term with your personal situation: Are you planning a family, or are you close to retirement? Longer terms provide greater stability.

The loan-to-value ratio refers to the relationship between the mortgage amount and the lending value of the property. The lending value corresponds to the market value of your property that the bank accepts as collateral. This should not be confused with the loan-to-value ratio itself. In Switzerland, a loan-to-value ratio of up to 80% is common, meaning that at least 20% equity is required.

The lower the loan-to-value ratio, the better your interest rate, since the bank faces less risk. For loan-to-value ratios above 67% (second mortgage), banks usually charge higher interest rates and require amortization. A ratio below 60% can lead to interest discounts because the bank is very well secured. The lending value is reviewed regularly and may be adjusted in response to market changes.

A better interest rate can be achieved through several strategies. The most important step is to systematically compare multiple providers. This is where MY HYPOTHECA AG comes into play. These offers serve as a strong basis for negotiation. A solid financial situation with high equity, good income, and a low loan-to-value ratio also influences the interest rate. Bundling different banking services (accounts, pension products, insurance) can additionally lead to discounts.

Timing is crucial: negotiate well before your current mortgage expires, but avoid putting yourself under pressure. An independent mortgage broker like MY HYPOTHECA knows the current market conditions of all providers and can often negotiate significantly better rates than you would be able to achieve on your own.

The published interest rate is the advertised reference rate of the bank, which often includes a considerable margin. The effective interest rate is the actual rate you negotiate, which is usually lower. A professional mortgage comparison already shows you the best current conditions, which are often significantly below the published rates.

Your personal mortgage rate may vary depending on the loan-to-value ratio, affordability, loan amount, and property location. The difference between the two rates depends on your negotiating position, market competition, and customer profile. By systematically comparing more than 50 providers, you automatically find the best available conditions without having to contact each provider individually.

You should begin preparing for your mortgage renewal early, ideally 6 months before your current mortgage expires. This lead time allows you to gather offers, compare conditions, and negotiate without pressure. Many banks send renewal offers 3–6 months before expiration, but these are often not the best available rates. Use this time to review your financial situation, reassess your amortization if necessary, and explore the market with MY HYPOTHECA.

In addition to mortgage interest, various ongoing and one-time costs arise. As a guideline, all monthly calculated housing costs should not exceed 39.9% of your gross income. This figure includes interest, amortization, and maintenance and ancillary costs. As a rule of thumb, one percent of the property value per year should be budgeted for maintenance and ancillary expenses. These include electricity, water, heating, insurance, taxes, and repairs.

In Switzerland, you must pay tax on the imputed rental value as income, but you can deduct mortgage interest as debt interest from your taxable income. Be sure to include these additional costs in your budget, as they can represent a significant portion of your total housing expenses.

An early termination of a mortgage is generally possible, but it is usually associated with costs. For fixed-rate mortgages, banks typically charge an early repayment penalty, which can be significant depending on the interest rate environment and the remaining term. This penalty is intended to compensate the bank for lost profit. When interest rates fall, the compensation tends to be higher; when rates rise, it may be lower or even waived.

Variable mortgages and SARON mortgages can usually be terminated without major penalties, with a notice period of 3–36 months. Some banks offer exit clauses in the event of a property sale or death. Before signing, carefully review the termination conditions and ask for full transparency regarding potential costs.

However, MY HYPOTHECA also works with financing partners that allow you to exit a fixed-rate mortgage for a flat fee of CHF 1,000.

The equity you contribute is an important factor in determining your mortgage conditions. Your equity can come from many different sources – savings, pension fund assets, or pillar 3a assets. The more equity you provide, the better your conditions generally become. The minimum requirement for purchasing a home is 20% of the purchase price, with at least 10 percent coming from “hard” funds (cash or securities).

With higher equity, the bank’s risk decreases, which is reflected in lower interest rates. From around 40% equity, you often benefit from significantly better conditions. Affordability also improves with more equity, as your mortgage debt – and therefore your interest burden – decreases. Your MY HYPOTHECA advisor will be happy to assist you in securing the optimal conditions.