Fixed-rate mortgage

Fixed-rate mortgages are for people who want to budget their interest costs accurately and avoid surprises. Since the interest rate is fixed for the entire duration, it always remains the same and does not rise suddenly. In addition, the interest rate can be fixed up to 12 months in advance.

By contrast, with a fixed-rate mortgage you don't benefit if interest rates fall before the end of the duration. This is only the case if you have a mortgage with a variable interest rate (SARON mortgage). In addition, extraordinary amortization payments are subject to a fee and the mortgage cannot generally be terminated prematurely.

With a fixed-rate mortgage, you are protected against rising interest rates. But you don't benefit if interest rates fall either. The situation is different for a mortgage with a variable interest rate (SARON mortgage). With a SARON mortgage, you benefit when interest rates fall, but you also pay more when interest rates rise. It is therefore advisable to combine fixed-rate mortgages and SARON mortgages by dividing your mortgage into tranches.

Which mortgage combination is best for you depends on several factors. This includes your risk tolerance, what financial reserves you have, and what your long-term plans are, i.e., whether you want to sell the property, for example. It is best to talk to our mortgage experts so that we can look at your situation together.