Banking

SARON or Fixed Mortgage 2026

March 1, 2026

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8 min

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checkeverything.ch Team

SARON vs fixed mortgage 2026: Current rate comparison, pros and cons. Which mortgage suits your situation in Switzerland?

Note: This article contains affiliate links. If you complete a product through these links, we receive a commission. There are no additional costs for you. Product selection is made editorially independent.

Interest Rate Situation 2026: What Has Changed?

The Swiss National Bank (SNB) has lowered the key interest rate to 0%. This affects both mortgage models – but to different extents.

Current Indicative Rates (As of March 2026)

Mortgage Type	Indicative Rate approx.	Trend
SARON Mortgage	0.80% - 1.20%	↓ Low
Fixed 2 Years	1.20% - 1.50%	→ Stable
Fixed 5 Years	1.40% - 1.70%	→ Stable
Fixed 10 Years	1.60% - 1.90%	→ Stable
Fixed 15 Years	1.80% - 2.10%	→ Stable

Indicative rates are averages. Your individual rate depends on creditworthiness, loan-to-value ratio, and provider.

SARON Mortgage Explained

What is SARON?

SARON stands for Swiss Average Rate Overnight. It is the reference interest rate for the Swiss money market.

Aspect	Details
Calculation	Average of overnight money market rates
Publisher	SIX Swiss Exchange
Update	Daily
SNB Connection	Closely follows the SNB key rate
Replaced	LIBOR (since 2022)

How Does the SARON Mortgage Work?

Component	Example
SARON (Compounded)	0.00% (at SNB key rate 0%)
+ Bank Margin	0.80% - 1.20%
= Your Mortgage Rate	0.80% - 1.20%

Rate Adjustment: Every 3 or 6 months (depending on contract)

SARON vs. Fixed Mortgage: The Comparison

Pros and Cons

Criterion	SARON Mortgage	Fixed Mortgage
Current Rate	Lower	Higher
Planning Security	Low	High
Interest Rate Risk	With Customer	With Bank
Flexibility	High (3-6 month notice)	Low (early termination fee)
Extra Repayments	Often possible	Limited
Historical Performance	Usually cheaper	More expensive, but secure

Cost Comparison Over 5 Years

Example: CHF 500,000 mortgage

Scenario	Mortgage Type	Interest Cost 5 Years
Rates remain stable	SARON (1.0%)	CHF 25,000
Rates remain stable	Fixed 5Y (1.5%)	CHF 37,500
Rates rise to 3%	SARON (Ø 2.0%)	CHF 50,000
Rates rise to 3%	Fixed 5Y (1.5%)	CHF 37,500
Rates fall (negative rates)	SARON (Ø 0.5%)	CHF 12,500
Rates fall (negative rates)	Fixed 5Y (1.5%)	CHF 37,500

When Does Which Mortgage Fit?

SARON Mortgage Recommended When:

✅ SARON is the Better Choice If:

✓ You can handle fluctuations in interest payments
✓ You expect falling or stable interest rates
✓ You want to stay flexible (sale, refinancing)
✓ You're planning extra repayments
✓ You have a financial cushion
✓ The rate difference to fixed mortgage is large (>0.5%)

Fixed Mortgage Recommended When:

✅ Fixed Mortgage is the Better Choice If:

✓ You need a fixed budget for housing costs
✓ You expect rising interest rates
✓ You're staying in the property long-term
✓ Interest rate risk keeps you up at night
✓ The rate difference to SARON mortgage is small
✓ Affordability is tightly calculated

2026 Strategies

Strategy 1: Split Mortgage

Divide your mortgage between both models:

Tranche	Share	Model	Purpose
1st Tranche	50%	Fixed 10Y	Security
2nd Tranche	50%	SARON	Benefit from low rates

Advantage: You benefit from low SARON rates while having protection.

Strategy 2: Staggered Terms

Tranche	Share	Term	Expires
1st Tranche	33%	3 years fixed	2029
2nd Tranche	33%	6 years fixed	2032
3rd Tranche	33%	10 years fixed	2036

Advantage: You're never fully exposed to the current interest rate level.

Strategy 3: SARON with Cap

Some providers offer SARON mortgages with interest rate ceiling (Cap):

You benefit from low SARON rates
The rate cannot exceed a certain cap (e.g., 3%)
Costs a premium (0.1-0.3% higher rate)

Compare Mortgages and Save

The right provider can save thousands of francs:

Compare Mortgages

Find the best mortgage for your situation

Compare now →

FAQ

What happens if SARON becomes negative?

Most banks have a floor of 0% - SARON cannot fall below zero. You would then only pay the margin.

Can I switch from SARON to fixed mortgage?

Yes, with 3-6 months notice. The reverse switch (fixed to SARON) is only possible at the end of the fixed mortgage term or with an early termination fee.

How often is the SARON rate adjusted?

Usually every 3 or 6 months, depending on the contract. SARON itself is calculated daily.

Is a long fixed mortgage worth it at low rates?

Historically yes - locking in low rates long-term has usually been advantageous. But: The rate difference to SARON mortgage must be worth the protection.

What's better for first-time buyers?

Often a fixed mortgage is recommended: You have planning security and affordability is clearly calculable.

Conclusion

2026 both mortgage models offer advantages:

SARON Mortgage: Currently the cheapest option, but with interest rate risk
Fixed Mortgage: Planning security at historically moderate rates

The right choice depends on your risk tolerance, financial situation, and interest rate outlook. A split mortgage can combine the advantages of both worlds.

Legal Notice: The information in this article is for informational purposes only and does not constitute financial advice. Mortgage rates change daily. Binding offers are available directly from mortgage providers.