SARON or fixed rate: how to choose your mortgage

In Switzerland two main mortgage families compete: the SARON mortgage, whose rate follows the money market, and the fixed-rate mortgage, locked in for 2 to 15 years.

What to compare

A SARON rate is made of the 3-month compounded SARON (which most banks floor at zero) plus a bank-specific margin. A fixed rate is known for the whole term.

Among institutions publishing their rates in early November 2026, we see an all-in SARON from 0.70% (Banque du Léman) and a 10-year fixed rate from 1.66% (Vaudoise). The gap is large, but it does not tell the whole story: it measures the price of certainty.

Choose SARON if…

• your budget has a comfortable safety margin: charges stay affordable if rates rise markedly;
• you accept that your interest varies from quarter to quarter;
• you want to be able to switch to a fixed rate at any time (most banks allow this at the end of a quarter).

Choose a fixed rate if…

• your budget is tight and you want a known cost in advance;
• you prefer peace of mind to optimising every percentage point.

The mixed solution

Nothing forces you to pick a single model: part of the debt fixed and part SARON spreads the risk. A broker compares these combinations for your situation.

General, non-binding information. Rates quoted are those published by institutions on 01.11.2026 and change regularly.