Interest Rate Optimisation

Refinancing when your mortgage expires is the most important moment for interest rate optimisation. You should become active 12 months before expiry.

Important: Your house bank rarely makes the best offer. Competing offers significantly strengthen your negotiating position.

We start the process early, obtain multiple offers and negotiate the best terms for you. This often saves several thousand francs a year.

With a forward mortgage you can fix an interest rate up to 24 months in advance. You pay a surcharge (forward premium) for this security.

Useful when: You expect rates to rise, you have a strong need for security, or you want planning certainty.

Cost: Typically 0.01-0.02% per month of lead time.

Example: With a 12-month forward period and 0.015% per month, you pay a 0.18% surcharge – this can be worthwhile if rates rise by more than that amount.

Choosing the right term significantly affects both interest costs and flexibility.

Short terms (2-5 years): Lower rates, but interest rate risk. Suitable if you expect stable or falling rates.

Long terms (8-15 years): Higher rates, but maximum planning certainty. Sensible when rates are historically low.

Medium terms (5-7 years): Often the best compromise between rate and security.

We analyse the current yield curve and recommend the optimal strategy for your situation.

Mortgage rates are negotiable – but not all banks communicate this openly.

Improve your negotiating position: present competing offers, demonstrate good creditworthiness, show high equity, bundle additional bank products.

Typical negotiating margins: 0.05-0.20% are realistic, and more with good preconditions.

As independent advisors we have long-standing relationships with all major providers and can often negotiate better terms than individuals.