Switzerland 💰 CHF Last updated2026-05-28

Hypothek Calculator Switzerland

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Quick answer (Switzerland)

A CHF 800,000 Festhypothek at 1.85% over a 15-year fixed term works out to a monthly payment of about CHF 5'093, with total interest of CHF 116'740 over the full term.

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Mortgage Calculator

CHF

Home Value

CHF

LTV 80% · No PMI ✓

Loan Amount

CHF

Interest Rate

Term

Total Monthly

CHF 6'426

PITI

Principal + Interest

CHF 5'093

13% goes to interest

Total Interest

CHF 116'740

over 15 years

Monthly Breakdown

Principal & InterestCHF 5'093

Property Tax (1.1%/yr)CHF 917

Homeowner's Insurance (0.5%/yr)CHF 417

Total MonthlyCHF 6'426

Principal vs Interest Split

87% principal

✨ Live recalculation·Includes P&I, property tax, insurance. Estimates only — consult a licensed lender for exact rates.

Reviewed by

Aisha Rahman, CFP®, MBA LinkedIn ↗

CFP® with 12+ years in mortgage & retirement planning.

Local context

Hypotheks in Switzerland

Typical loan

CHF 800'000

in Switzerland

Typical rate

1.85% p.a.

prime borrower, 2026

Typical term

15 years

most common

Market overview

Swiss mortgages run through UBS, Raiffeisen, Zürcher Kantonalbank, PostFinance, and the cantonal banks. Two-tier amortization is standard: a 1st-rank mortgage up to 65% LTV is amortization-free, and a 2nd-rank mortgage from 65-80% LTV must be amortized within 15 years (or by retirement). The Swiss National Bank cut its policy rate to 0.50% in early 2026, pushing SARON-linked floating rates below 2%.

Why 1.85% is the typical rate

1.85% reflects a typical 10-year fixed Festhypothek at 65% LTV in early 2026. SARON-linked variable rates trade around 1.4-1.7%. Switzerland's structurally low rates reflect strong currency, low inflation, and SNB policy.

Tax & regulatory notes

The Eigenmietwert (imputed rental value) is added to your taxable income, but mortgage interest and maintenance costs are deductible — so most homeowners are roughly tax-neutral. Federal proposal to abolish Eigenmietwert (and the interest deduction) was passed by parliament in late 2024 with phased implementation. Property transfer tax (Handänderungssteuer) varies by canton: 0% in Zurich, 1.65% in Geneva, up to 3.3% in Vaud.

🧮 Worked example

A CHF 800,000 Festhypothek at 1.85% over a 15-year fixed term

Loan amount

CHF 800'000

Annual interest rate

1.85%

Term

15 years (180 months)

Monthly payment

CHF 5'093

Total interest paid

CHF 116'740

Total paid (principal + interest)

CHF 916'740

❓ FAQ (Switzerland)

Common questions in Switzerland.

How does Swiss two-tier amortization work?

Banks split your mortgage into two ranks. The 1st-rank (1. Hypothek) covers up to 65% LTV and has no amortization requirement — you can carry it indefinitely. The 2nd-rank (2. Hypothek) covers the 65-80% LTV portion and must be paid down within 15 years (or by age 65 if sooner). Direct or indirect amortization (via pillar 3a) both qualify.

Pillar 3a indirect amortization — is it worth it?

Indirect amortization parks your 2nd-rank payments in a Säule 3a account (tax-deductible) until age 60 (women) / 65 (men), then uses the lump sum to amortize. This boosts deductions vs. direct amortization while keeping the mortgage interest deductible too. Over 15 years it can save CHF 20,000-50,000 in tax, depending on income.

Will Eigenmietwert really be abolished?

Parliament passed the reform in December 2024. Eigenmietwert will be removed (alongside interest deductions and maintenance deductions for primary residences) effective 2028, subject to a confirming popular vote in 2026-2027. Homeowners with low mortgages will benefit; those with high mortgages will see deductions disappear — encouraging amortization.

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