You can pay down your mortgage either directly or indirectly.
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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.
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.
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.
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 (253.3 kB)
Buying a home in Switzerland
Owning your home is more than just an investment: it is a major decision that should be carefully considered.
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Variable-rate mortgage
Our variable-rate mortgage loan lets you buy or renovate a home with interest rates that fluctuate as market conditions change.
Libor mortgage
The short term mortgage loan closely follows financial market conditions during your chosen term.
Building Plus loan
Our Building Plus loan provides worry-free financing for the construction of your home – and you don't have to start paying it back until construction is complete.