When it comes to taking out a mortgage, you need to consider various options and determine the one that best suits your needs. Currently, the Swiss mortgage market is undergoing an interesting shift where fixed-rate mortgages are cheaper on average than Saron mortgages, which are subject to fluctuations. While fixed-rate mortgages were once considered safer due to their planning security, recent trends have shown that fixed-rate mortgages with terms of up to ten or fifteen years are now cheaper than Saron mortgages. This means that borrowers can benefit from the protection offered by fixed-rate mortgages against rising interest rates.
However, Saron mortgages have fluctuating interest rates that adjust based on the Saron reference interest rate. While they were once popular because of their lower rates, recent increases by the Swiss National Bank have made fixed-rate mortgages more attractive. Ultimately, when choosing between fixed-rate and Saron mortgages, it’s important for borrowers to weigh the risks and benefits of each model and make an informed decision based on their individual preferences and financial circumstances.
