Start planning 12–18 months before your mortgage expires. Even a 0.2 percentage-point difference in interest rate saves around CHF 1'600 per year on a CHF 800'000 mortgage – CHF 16'000 over 10 years. Obtain at least 3 comparison offers, use them as leverage with your house bank, and consider a forward mortgage (surcharge depending on the period 0.00–0.40%). Switching banks incurs one-off switching costs of around CHF 500–2'500 – plus, separately, a possible prepayment penalty (Vorfälligkeitsentschädigung) of CHF 5'000–30'000 for an early exit.
Ideally 12–18 months before the fixed-rate mortgage (Festhypothek) expires. The timeline: 18 months ahead, monitor the market and consider the forward option; 12 months ahead, obtain offers from 3–5 banks; 6 months ahead, set the strategy (SARON, fixed, tranching); 3 months ahead, negotiate and sign the final offer. Your bank will contact you 3–6 months before expiry – that is your negotiating starting point, not the end goal.
Even a 0.2 percentage-point difference in interest rate yields a saving of CHF 1'600 per year on CHF 800'000 – CHF 16'000 over 10 years. Through comparison and negotiation, a total saving potential of 0.2–0.5% is realistic. A typical interest saving of 0.1–0.3% corresponds to around CHF 800–2'400 per year on CHF 800'000. Present concrete comparison offers – often a counter-offer is enough for the house bank to adjust its terms.
Budget conservatively for CHF 500–2'500 in one-off switching costs. These include the transfer of the Schuldbrief (CHF 200–1'000; in the Canton of Zurich around 1.0‰ notary + 1.0‰ land register of the mortgage amount), a processing fee charged by the new bank (usually CHF 0, sometimes up to CHF 500) and the property valuation (CHF 0–1'500). Separately, an early exit triggers a prepayment penalty (Vorfälligkeitsentschädigung) of CHF 5'000–30'000 – which, when switching banks, is not deductible as mortgage interest according to the Federal Supreme Court (Bundesgericht).
A forward mortgage (Forward-Hypothek) locks in the interest rate up to 24 months (according to the option table, up to 36 months) in advance – in exchange for a surcharge. Typical surcharges: 3 months 0.00–0.05%, 6 months 0.05–0.10%, 12 months 0.10–0.20%, 24 months 0.20–0.40%. It is only worthwhile if you expect interest rates to rise. With stable or falling rates, you pay the surcharge without any benefit in return.
Most banks automatically convert an expiring fixed-rate mortgage (Festhypothek) into a variable mortgage. While this can be cancelled at short notice, it often carries a significantly higher interest rate. That is why all tranche expiry dates should be noted and the transition to the new mortgage planned seamlessly – ideally with a signed offer no later than 3 months before expiry.
Five levers: present comparison offers from competitors, emphasise the overall relationship (accounts, credit cards, pillar 3a), offer an extraordinary one-off payment (amortisation), explicitly demand that the competitor's offer be matched, and show flexibility on the term – sometimes 7 or 8 years are cheaper than 5 or 10. Before signing the contract, always request a written breakdown of total costs.