Libor mortgage loan

If you want to take advantage of the lowest interest rates in the market and don't expect rates to rise anytime soon, then our Libor mortgage loan is for you. It keeps the interest you pay to a minimum with a Libor-linked rate – especially attractive during periods of steady or declining interest rates. However, because interest rates can also go up, you'll need to keep a close eye on the financial markets.


Attractive interest rates for the short term

The Libor-linked interest rate on this mortgage loan is designed to closely track market trends. The loan will renew automatically every three or six months unless you decide to switch to a different type of mortgage loan.


The flexibility you need

Our Libor mortgage loan gives you the flexibility to keep interest payments to a minimum. At the end of each term, you’ll have the option of switching to a different type of mortgage loan if you think the Libor rate will go up.

Taux Libor souplesse

Minimize risk by combining interest rates

To reduce interest-rate risk, you can divide your mortgage loan into multiple tranches with different interest-rate conditions (fixed-rate, variable-rate, or Libor-linked). That can help protect you against higher interest rates when you renew your mortgage.


Mortgage repayment

You can pay down your mortgage either directly or indirectly.

Direct repayment

With the direct repayment option, you make regular mortgage payments to BCV. These payments will be applied to the loan principal and interest, and your overall mortgage debt will decrease over time. However, your tax charge will increase every year since you can deduct only the interest payments.


Amortissement direct

Indirect repayment

With the indirect repayment option, instead of making mortgage payments directly to BCV, you put the money into a third-pillar retirement account that you pledge to BCV. This option offers some tax advantages: you can deduct the payments made to your retirement account from your taxable income; and you maximize the amount of your tax-deductible mortgage debt.


Amortissement indirect prêt hypothécaire

Fees and conditions


Fees and conditions


  • Up to 50% of your mortgage financing can be in the form of a Libor loan
  • Minimum loan amount: CHF 100,000
  • Minimum downpayment: 20% of the purchase price
  • Mortgage and interest payments plus home maintenance should not exceed a third of your household income
  • Mortgage term: 3 or 6 months, renewed automatically at the end of each term for the same term

Information about LIBOR

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LIBOR bows out

In July 2017, the Financial Conduct Authority, the UK market watchdog, announced that banks would no longer be required to participate in the setting of LIBOR after December 31, 2021, thereby putting an end to one of the most widely used indices of the last 30 years or more.

Grösse : 196.17 KB - Zuletzt geändert : 14.5.2019

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