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 short term mortgage loan is for you. It keeps the interest you pay to a minimum with a short term 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.

You can pay down your mortgage either directly or indirectly.

Direct payment

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.

 

Indirect payment

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.

 

• Maximum amount of your loan that can be in the form of a short term loan: 50%
• Minimum downpayment as a percentage of the purchase price: 20%
• Maximum cost of mortgage and interest payments plus maintenance: 33% of household income
• Minimum loan amount: CHF 100,000
• Mortgage term: 3 or 6 months, renewed automatically for the same term.

• Credit Fee Schedule (157.5 kB)

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