Start Mortgage
An affordable way to get started or clever marketing?

The (also known as a first-time buyer mortgage or similar) is aimed at people buying a home for the first time.
Many banks advertise attractive interest rates and special discounts.

But this raises the crucial question: Is the “Start” Mortgage really an advantage—or is it more of a marketing tool?

Start Mortgage

Definition
Start-Mortgage

A starter mortgage is a that offers a limited-time interest rate discount for first-time homebuyers.

Typical terms (depending on the mortgage lender):

  • First Home Mortgage
  • First-Time Homebuyer Mortgage
  • Easy Start Mortgage

Typical eligibility requirements include the first-time purchase of an owner-occupied home and, in some cases, a restriction to new customers of the respective provider.

Important to Know
This is not a standalone but rather a promotional offer on existing models (e.g., Fixed-rate mortgage or SARON mortgage).

Comparison

Pros and Cons
What You Need to Know

Benefits of the Start Mortgage

  • Affordable entry point
    Main advantage

    First-time homebuyers benefit from a reduced interest rate. This can make financing and budgeting easier in the first few years, especially when buying a home for the first time.

  • Support for First-Time Homebuyers

    Many banks want to attract new customers and therefore offer targeted introductory offers.

Disadvantages of the Start Mortgage

  • Discounts are often only temporary
    Main disadvantage

    The lower interest rate often applies only for a few years or only to a portion of the loan. After that, you’ll pay the standard—and often “excessive”—interest rate.

  • Lack of transparency

    The actual costs are often only apparent upon closer inspection, which makes it difficult to compare offers with others. These include, for example, restrictions in the fine print or complex eligibility requirements

  • Bait-and-switch offer

    Introductory mortgages are often used as a tool for customer acquisition.
    The goal of banks is to attract new customers, retain them over the long term, and ultimately generate higher margins.

  • Risk of Customer Lock-in

    A common tactic that can become a problem for customers later on is the combination of short- and long-term mortgages. The discount applies only to the short-term mortgage; the long-term mortgage ties you to the bank and is relatively expensive. As a result, you have little room to negotiate when it comes time for the extension.

Dimension
Discount amount

The interest rate reduction is usually approximately 0.1% to 0.3% below the standard rate, but is often limited to only a portion of the Mortgage.

Sounds appealing—but appearances can be deceiving.

Key Question
Are starter mortgages really cheaper?

Not necessarily. In many cases, the following applies:

  • Standard interest rates are set artificially high
  • The “discount” pales in comparison to market rates

Anyone who often finds offers that are just as good or significantly better—even without a sign-up bonus and its drawbacks. The is therefore often not an introductory Mortgage.

FAQ

Frequently Asked Questions
Answers about the Start Mortgage

A starter mortgage is particularly worthwhile for first-time homebuyers and, in some cases, for new customers who are switching their Mortgage to a new provider (though this is rather rare). However, what matters most is not the name of the product, but whether the effective interest rate and terms are truly attractive compared to the market.

Typical conditions include: the first-time purchase of an owner-occupied property, use as a Main Residence, specific property types, and often a clearly defined term. Depending on the provider, the promotion may apply only once per property or only to certain financing components. In many cases, the amount of the Mortgage eligible for the discount is also specified.

No. An advertised interest rate bonus does not automatically mean that the initial Mortgage is the cheapest on the market. and consumer protection organizations have been pointing out for years that so-called discounts can, in some cases, end up being more expensive than standard mortgages from other providers. offer many advantages and should also be considered by first-time homebuyers when selecting the best Mortgage.

The main difference usually lies not in how they work, but in the discount or bonus offered to new customers. A standard fixed-rate mortgage and a starter mortgage can be technically identical—except that the starter mortgage is offered at a discounted rate for a limited time or to a specific target group. 

Our Tip
Always compare options instead of relying on discounts

The most important rule

  • It’s not the discount that matters—it’s the effective interest rate over the entire term

What many people don’t know: Even introductory mortgage rates can be negotiated, and competing offers can drive interest rates down even further. By using a market comparison of current Swiss mortgage rates, you can often save more than with just an introductory discount.

Many borrowers trust their regular bank, don’t shop around, and don’t negotiate—and as a result, end up paying too much. With a Mortgage platform like HYPOTHEKE.ch, you can see the entire market, identify the best deals, and avoid marketing traps.

Video

Video on the topic

This YouTube video is about “discounts” that aren’t really discounts at all, comparison errors, transparency, and much more.

@Mortgage
Florian Schubiger
Founder of Mortgage.ch

Mortgage Tips and Tricks