5-Year Fixed-rate mortgage
The flexible alternative with a fixed interest rate

The is a popular in Switzerland. It strikes a balance between security and flexibility—which is precisely why it appeals to many homeowners. But when is a 5-year fixed-rate mortgage really worth it?

10-year fixed-rate mortgage

In a nutshell
5-year fixed-rate mortgage

With a 5-year fixed-rate mortgage, the interest rate is locked in for five years, which provides consistent interest costs and protection against short-term interest rate hikes. At the same time, there is more flexibility than with and any is lower than for longer remaining terms.

Costs over years,
with a % lower interest rate and a Mortgage of CHF.
↑↓ Parameter anpassen
CHF
Jahre
%
%

Good Balance
Security and Flexibility

You lock in a fixed interest rate—without committing to a long-term contract.

More flexibility than 10-year terms

After five years, you can switch providers, adjust your strategy, and take advantage of new market conditions.

Attractive interest rates

Due to competition, the terms are often very competitive. Generally, all providers offer terms of 5 years.

Target audience

A 5-year fixed-rate mortgage is particularly useful if you don’t want to commit to a long-term agreement, your future personal situation is uncertain, or you expect interest rates to rise in the short term but remain stable or fall in the long term.

It is often the “compromise solution” between and long-term mortgages. As always, a compromise solution is rarely the best, but rarely the worst either. Property owners who choose a five-year fixed-rate mortgage out of uncertainty are never well advised. A shorter or longer term might be better for your situation. Seek impartial advice on this matter.

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Current interest rates
Highly competitive market

The 5-year fixed-rate mortgage is particularly interesting because it is often the focus of – which leads many providers to offer particularly aggressive rates and banks, , and to compete fiercely with one another. Interest rates are often attractive as a result, although here too differences of up to 0.5% or, in extreme cases, even more are possible between providers.

Top 10
Comparison of five-year fixed-rate mortgages

An excerpt from our interest rate comparison featuring over 100 Fixed-rate mortgage providers shows that there are significant differences even among the top-ranked providers.

If you’d like to learn more about our interest rate comparison, compare rates for different Terms, or view the full range of published offers, visit our nationwide interest rate comparison.

Comprehensive Swiss interest rate comparison

Switzerland’s largest mortgage rate comparison site with over 100 providers. Updated hourly.

Compare Swiss Mortgages

5-year fixed-rate mortgage

HYPOTHEKE.ch *1.172 %
CPCN1.25 %
Generali Versicherung1.28 %
Pensionskasse Post1.29 %
Vaudoise Versicherungen1.29 %
Swissquote1.29 %
asga Pensionskasse1.31 %
PVK Personalvorsorgekasse der Stadt Bern1.35 %
Swiss Life1.36 %
Luzerner Pensionskasse1.36 %
Comparison of five-year fixed-rate mortgages

Pros and Cons
What You Need to Know

Benefits of a five-year fixed-rate mortgage

  • Good balance between security and flexibility
    Main advantage

    You lock in a fixed interest rate—without committing to a long-term contract.

  • More flexibility than 10-year terms

    After five years, you can switch providers, adjust your strategy, and take advantage of new market conditions.

  • Attractive interest rates

    Due to competition, the terms are often very competitive.

Disadvantages of a five-year fixed-rate mortgage

  • Limited planning security
    Main disadvantage

    After 5 years, you’ll need to revisit your Mortgage.

  • Greater effort

    After five years, you have to renegotiate, possibly switch providers, and take care of the Mortgage again.

  • Risk of rising interest rates upon extension

    When interest rates rise, refinancing becomes more expensive.

  • Repayment penalty possible

    Early termination is usually expensive—except in the case of special offers.

    Learn more here: Repayment penalty for fixed-rate mortgages

FAQ

Frequently Asked Questions
Answers about the 5-year fixed-rate mortgage

A 5-year fixed-rate mortgage is a mortgage with a fixed interest rate for five years. During this period, the interest rate remains unchanged—regardless of how market rates fluctuate.

Learn more about different terms for mortgages here
Fixed-rate mortgages | 5-year fixed-rate mortgage | Saron mortgage

Generally speaking, yes (at the time of closing). Shorter terms usually have lower interest rates but offer less long-term security. Whether they are more cost-effective over a ten-year period depends on general interest rate trends.

Yes, but usually only in exchange for a Repayment penalty, which can quickly amount to several thousand francs. There are also providers that offer the option to cancel.

Learn more here: Repayment penalties on Mortgages

You can find the best Mortgage by comparing multiple providers. Platforms like HYPOTHEKE.ch help you compare transparent offers and secure the best Interest rate.

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