The SARON mortgage
for the risk-conscious
SARON (Swiss Average Rate Overnight) is the reference rate used to calculate money market mortgages in Switzerland. Banks lend to each other every day and at different interest rates. The average interest rate of all these loans is calculated at the end of each day. This results in the SARON. With this mortgage, the interest rate fluctuates within the agreed time frame or during the indefinite term.
What does that
mean to you?
As long as you speculate on falling interest rates, the SARON is worthwhile for you - but only if you can also financially cope with an increase in interest rates. The SARON is a joy to behold if the interest rate falls or remains low. But, conversely, it isn't straightforward.
By the way, many lenders or providers offer to convert the SARON mortgage into a fixed-rate one at any time or at the end of the quarter.
3 arguments for
a SARON mortgage
You like to stay flexible.
Rising and falling interest rates don't make you nervous.
You have sufficient financial reserves in the event of sustained negative development.
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