SARON vs fixed rate: which mortgage to choose in 2026?

Q: Is SARON really cheaper than a fixed rate?

In March 2026, yes: SARON (0.64-1.20%) is significantly cheaper than a 5-year fixed rate (1.09-1.65%) or a 10-year fixed (1.50-2.05%). Historically, SARON/LIBOR borrowers have paid less than fixed-rate borrowers in approximately 75% of periods. But SARON can also be temporarily more expensive during rate hikes, as in 2023.

Q: Can you combine SARON and a fixed rate?

Yes, this is the tranche strategy. You split your mortgage into two parts: one on SARON and one on a fixed rate. This allows you to benefit from low SARON rates while securing part of your borrowing. Beware of the lock-in trap if the maturity dates differ at the same bank.

Q: When should you switch from SARON to a fixed rate?

There is no absolute rule. Set in advance a rate threshold above which you will switch to fixed (for example, if SARON exceeds 2%). Follow SNB announcements and market expectations. Do not react in panic: when SARON rates rise, fixed rates rise too. The best approach is to seek professional advice.

Q: What is the typical profile of a SARON vs fixed-rate borrower?

The typical SARON borrower has comfortable income, a good financial reserve, risk tolerance, and follows economic news. The typical fixed-rate borrower has a more constrained budget, prefers predictability, dislikes surprises, and wants to plan without uncertainty.

Q: Will fixed rates go down in 2026?

Fixed rates depend on the capital markets (swap rates, bonds) and not directly on the SNB. In March 2026, fixed rates are already relatively low. A further decline is possible but not guaranteed. Geopolitical tensions, inflation or strong economic recovery could push them back up.

Q: How much can you save with SARON compared to a fixed rate?

In March 2026, on a CHF 800,000 mortgage, the difference between a median SARON (0.90%) and a median 5-year fixed rate (1.35%) represents approximately CHF 3,600 per year, or CHF 18,000 over 5 years. But if SARON rates rise significantly during that period, the saving shrinks or reverses.

This is the question every homeowner in Switzerland asks: should you opt for the security of a fixed rate or take advantage of the low SARON rates? The answer depends on your situation, your risk profile and your expectations. This guide gives you all the elements to make your decision.

Comparison at a glance

Criterion	SARON	Fixed rate 5 years	Fixed rate 10 years
Indicative rate (March 2026)	0.64% - 1.20%	1.09% - 1.65%	1.50% - 2.05%
Annual cost (CHF 800,000, median rate)	~CHF 7,200	~CHF 10,800	~CHF 14,000
Predictability	3 months	5 years	10 years
Flexibility	High (3-6 months' notice)	Low (penalties)	Very low (high penalties)
Risk if rates rise	High	None	None
Benefit if rates fall	Immediate	None	None

Three scenarios to understand the impact

To illustrate the difference concretely, let's simulate three scenarios over 5 years with a CHF 800,000 mortgage:

Scenario 1: rates remain stable

The SNB maintains its policy rate at 0.0% for 5 years. SARON stays around 0.90%.

Option	Total cost over 5 years	Difference
SARON (0.90%)	CHF 36,000	-CHF 18,000
Fixed 5 years (1.35%)	CHF 54,000	Benchmark

Winner: SARON with CHF 18,000 in savings. This is the ideal scenario for SARON.

Scenario 2: progressive rate increase

The SNB progressively raises its policy rate to 1.50% over 3 years (+0.50% per year), then stabilises. Average SARON over 5 years: approximately 1.80%.

Option	Total cost over 5 years	Difference
SARON (average 1.80%)	CHF 72,000	+CHF 18,000
Fixed 5 years (1.35%)	CHF 54,000	Benchmark

Winner: fixed rate with CHF 18,000 in savings. The fixed rate played its protective role.

Scenario 3: moderate increase then decrease

The SNB raises to 0.75% then reduces to 0.25%. Average SARON over 5 years: approximately 1.20%.

Option	Total cost over 5 years	Difference
SARON (average 1.20%)	CHF 48,000	-CHF 6,000
Fixed 5 years (1.35%)	CHF 54,000	Benchmark

Winner: SARON with CHF 6,000 in savings. Even with a temporary increase, SARON remains cheaper in this scenario.

Simulate different scenarios with your own mortgage

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Profile types: who suits which option?

The "cautious" profile: fixed rate

Tight budget, mortgage payments represent a significant portion of income.
Need for certainty (family, school, fixed commitments).
Low tolerance for financial stress.
No significant liquidity reserve.
Preference for simplicity: "I sign and forget about it".

Recommendation: 5-10 year fixed rate, depending on your expectations and acceptable additional cost.

The "opportunistic" profile: SARON

Comfortable income with significant margin.
Financial reserve equivalent to 12+ months of mortgage payments.
Comfortable with variability and financial decisions.
Follows economic news and SNB decisions.
Ready to convert to fixed if necessary.

Recommendation: SARON with a pre-defined conversion strategy.

The "balanced" profile: mixed strategy

Wants to benefit from low rates without full exposure.
Moderate financial reserve.
Prefers a compromise between savings and security.

Recommendation: tranche strategy with one part fixed and one part SARON.

The March 2026 context: what do the markets say?

To inform your thinking, here are the objective market elements:

SNB policy rate: 0.0% -- a floor level. The SNB has little room to cut further (it could theoretically go negative, but this is considered unlikely).
Swiss inflation under control: inflation has returned to the SNB's target zone (0-2%), which does not justify a rate increase in the short term.
Flat to inverted yield curve: the 5-year fixed rate is sometimes cheaper than the 2-year, a sign that the market anticipates stable or declining rates in the medium term.
Moderate SARON-fixed spread: the gap between median SARON (0.90%) and median 5-year fixed (1.35%) is 0.45%, which is reasonable. The "cost of security" is not excessive.

Decision guide: 5 key questions

Answer these 5 questions to guide your choice:

Can you absorb a 2% increase in your rate?
If yes: SARON is an option. If no: fixed rate.
Do you have a liquidity reserve of at least CHF 50,000?
If yes: SARON is an option. If no: fixed rate is preferable.
Do you sleep well even when markets are turbulent?
If yes: SARON. If no: fixed rate.
Do you plan to sell or refinance within the next 5 years?
If yes: SARON (more flexible). If no: fixed rate is possible.
Are you willing to follow SNB decisions and react accordingly?
If yes: SARON with a conversion strategy. If no: fixed rate.

If you answered "yes" to at least 4 questions, SARON is probably suited to you. Otherwise, a fixed rate will serve you better. If your answers are mixed, the mixed strategy (tranches) is a good compromise.

Our recommendation for March 2026

In the current low-rate environment, both options are defensible:

SARON is objectively the most economical as long as rates stay low. With an SNB rate at 0.0%, the cost is minimal.
The 5-year fixed rate offers excellent value: at 1.09-1.35% (best offers), it is a historically low rate with 5 years of peace of mind.
The 10-year fixed at 1.50-1.75% remains attractive for those wanting long-term security.

The mistake would be to decide alone, under pressure, or without comparing. A mortgage broker analyses your situation, presents your options and negotiates the best conditions -- free of charge.

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Questions fréquentes

Is SARON really cheaper than a fixed rate?

Can you combine SARON and a fixed rate?

When should you switch from SARON to a fixed rate?

What is the typical profile of a SARON vs fixed-rate borrower?

Will fixed rates go down in 2026?

How much can you save with SARON compared to a fixed rate?

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