Saron mortgage loan
The SARON mortgage loan gives you greater flexibility by allowing you to adjust the terms of your mortgage loan or even repay it every 3 months.
SARON mortgage loan: a flexible mortgage for maximum optimisation of your loan
BCGE's SARON mortgage loan allows you to benefit from transparent and low interest rates. The mortgage loan is based on the SARON (Swiss Average Rate Overnight). It reflects the conditions for daily transactions in the secured CHF money market. The compounded SARON serves as the reference for the calculation of interest rates.
You can react very quickly if interest rates rise by simply telling your adviser to convert your SARON mortgage loan into a fixed-rate mortgage loan at the beginning of the next calendar quarter. The interest rate applicable on the day of your request will be applied.
You will thus optimise the interest rate risk by splitting your loan between a short-term rate (SARON) and a medium or long-term rate (fixed interest rate from 2 to 15 years).
Reference interest rate
Notification of interest rate
Two days before the end of the period (quarterly)
Ordinary termination or extraordinary amortisation
One-month notice period at the end of the quarterly closing.
Conversion to fixed rate
Possible with 15 days’ notice before the quarterly due date, interest rate fixed 2 days before the due date, with no fees.
The calculator provides the compounded interest rate based on SARON for all date combinations of the last 12 months (including non-business days), by calculating the daily SARON rates for the selected period: SARON calculator - Six