A mortgage calculator shows not only the interest rate, but also the ongoing burden from interest, amortisation and ancillary costs. For Swiss residential property, Belehnung, Tragbarkeit and term are decisive. The mortgage calculator is suitable for initial scenarios with a Festhypothek, SARON-Hypothek or Forward-Hypothek; the Tragbarkeit calculator also checks the FINMA/SBVg stress calculation. For current offers, the Swiss mortgage interest rate comparison should be used, because bank margins, creditworthiness, property location and tranche terms change the effective rate. Planning beyond 2029 is also important: with the Eigenmietwert reform, tax deductions change and with them the logic of amortisation.
The Festhypothek has a fixed term, usually 2 to 15 years, and an interest rate secured at completion. It provides budget certainty, but early termination is linked to an early repayment penalty. The SARON-Hypothek is variable: the rate is typically calculated every three months from the Compounded SARON plus the bank margin. In May 2026, the Compounded SARON is approximately -0.05%, with usual margins between 0.80 and 1.50%. The variable mortgage is usually more expensive today and has largely been replaced by SARON. A Forward-Hypothek fixes today’s rate up to 24 months before payout, often with a small premium.
In May 2026, the Swiss market shows low, but not free, mortgages. According to the hypotheke.ch aggregation across more than 50 providers, indicative rates are around 1.10% for a 2-year Festhypothek, 1.33% for 5 years and 1.54% for 10 years. The SNB policy rate is 0.0%, and expectations for 2026 are mostly stable. SARON-Hypotheken often cost around 0.75 to 1.30% all-in, depending on margin and model. For a fair comparison, it is not only the lowest interest rate that matters, but also amortisation requirements, fees, tranching and switching options.
The effective monthly burden consists of mortgage interest, required amortisation and ancillary costs. For Tragbarkeit, however, banks use a stress calculation according to FINMA/SBVg: 5% imputed interest, 1% ancillary costs per year and amortisation may usually amount to no more than 33% of gross income in total. Example: purchase price CHF 1'000'000, Eigenkapital CHF 200'000, Hypothek CHF 800'000. At 5% imputed interest, interest costs are CHF 40'000, plus CHF 10'000 ancillary costs. The second Hypothek of CHF 150'000 must be amortised down to 65% Belehnung, i.e. around CHF 10'000 per year over a maximum of 15 years.
A Hypothek can be taken out with a single term or divided into two to three tranches. A typical ladder is, for example, one third each with 5, 10 and 15 years. This means the entire debt does not come up for renewal in an unfavourable interest-rate year. This strategy often becomes useful from around CHF 500'000 of mortgage debt, because multiple tranches otherwise have little effect. The disadvantage: in practice, all tranches usually remain with the same provider as long as one tranche is still running. This tie-in makes switching banks more difficult and can weaken the negotiating position at renewal.
With direct amortisation, the Hypothek is reduced on an ongoing basis. This lowers interest costs and the debt-interest deduction. With indirect amortisation, repayment is not made to the bank, but into a pledged Säule 3a; the Hypothek remains unchanged. In 2026, the maximum 3a deduction is CHF 7'258 for employed persons with a Pensionskasse and CHF 36'288 for self-employed persons without a Pensionskasse. Indirect amortisation can be worthwhile from around a 25% marginal tax rate, because 3a contributions are deductible and the debt-interest deduction is maintained. After 2029, this calculation becomes weaker because the deduction for owner-occupied residential property will be abolished.
The Swiss electorate approved the Eigenmietwert reform on 28 September 2025 with 57.7% voting Yes. The EFD has set entry into force for 1 January 2029. From then on, the Eigenmietwert on the primary residence will no longer apply. At the same time, for owner-occupied residential property, the debt-interest deduction and maintenance deduction will generally disappear. Cantons may introduce a property tax for second homes. For mortgage calculators and amortisation planning, this means: low mortgage debt becomes less disadvantageous from a tax perspective, direct amortisation becomes more attractive, and 3a strategies should be calculated with a tax comparison before and after 2029.