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Short term 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 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.

Highlights

Attractive interest rates for the short term

The short term 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 short term 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 short term rate will go up.

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.

Rates and conditions

	Details
Minimum amount	CHF 20,000
Maximum amount	Multifamily residential properties: max. of 80% of the property's value Other real estate: between 50% and 70% of the property's value
Term of loan	1 to 12 months
Interest rate	Customized fixed rate
Principal repayment	Generally 1.25% of the loan amount per year
Due dates	Quarterly Quarterly installments include interest and principal repayment