When to start renewing your mortgage

Timing is crucial in mortgage renewal. Starting too late means missing out on thousands of francs in savings. Starting at the right time means giving yourself the opportunity to compare, negotiate and choose the best strategy. Here is the ideal timeline, step by step.

The ideal renewal timeline

Renewing a mortgage is not a one-off event but a process that spans several months. Here is the timeline recommended by our experts:

18 to 24 months before maturity: the observation phase

At this stage, it is still early to act, but it is the time to start monitoring the market:

• Track rate trends: observe SARON trends, fixed rates and SNB decisions (currently at 0.0%).
• Assess your situation: have your income changed? Has your property value shifted? Do you have upcoming projects (renovations, career change)?
• Learn about forward rates: some lenders allow you to lock in a rate up to 24 months in advance.

If rates are particularly low and you fear an increase, this is the time to consider a forward rate.

12 to 18 months before: the time to act

This is the optimal period to start your process in earnest:

• Contact a mortgage broker: a free initial consultation allows you to analyse your situation and options.
• Gather your documents: latest salary certificates, tax return, property valuation, current mortgage contract.
• Request indicative offers: this gives you an idea of the market without any commitment.
• Consider a forward rate: if rates are attractive, locking in a rate for 12-18 months can be an excellent strategy.

At 12-18 months, you have the luxury of time. You can compare calmly, without pressure, and make an informed decision.

6 to 12 months before: the decision phase

If you have not started yet, this is the last comfortable window:

• Launch competitive bidding: obtain firm offers from multiple lenders.
• Compare conditions: beyond the rate, examine fees, flexibility and amortisation conditions.
• Negotiate: with multiple offers in hand, you have a powerful negotiating lever.
• Make your decision: choose the lender and strategy (fixed, SARON, tranches).

3 to 6 months before: the urgency zone

At less than 6 months before maturity, you are in urgent territory. It is still possible to compare and switch banks, but:

• Forward rates are no longer available (the period is too short).
• The transfer process to a new bank takes time (due diligence, mortgage note transfer).
• You are under pressure, which reduces your negotiating power.

Less than 3 months: the last chance

At this stage, your options are limited. You can still negotiate with your current bank by showing them competing offers, but switching lenders will be difficult within such a short timeframe. Some banks will refuse to process a transfer file in less than 3 months.

The forward rate: a strategic tool

The forward rate is a little-known but extremely useful tool during renewal. It allows you to lock in today's rate for a mortgage that will start in the future.

How does a forward rate work?

The principle is simple: you sign a fixed-rate mortgage contract today, but the effective start date is deferred into the future (6, 12, 18 or even 24 months). In return, the lender applies a premium (the "forward surcharge"):

• Typical surcharge: between 0.01% and 0.03% per month in advance.
• Example: a 10-year fixed rate at 1.60% with a 12-month forward would cost approximately 1.72% to 1.96% (depending on the surcharge).
• Advantage: total protection against a rate increase.
• Risk: if rates fall in the meantime, you are locked into a higher rate.

When to use a forward rate?

A forward rate is relevant in the following situations:

• Rates are historically low and a rise seems likely.
• The SNB signals a tightening of its monetary policy.
• You have a cautious profile and prefer predictability.
• Your maturity is in 12 to 24 months and current conditions are attractive.

In March 2026, with an SNB rate at 0.0%, mortgage rates are low. If you fear rates rising, a forward rate may be a wise choice.

The process of switching banks

Many homeowners stay with their bank out of fear of the complexity of a transfer. In reality, the process is simple and well-established:

1. Notification to your current bank: inform them of your intention not to renew (respect the notice period, typically 3 to 6 months).
2. Signing with the new lender: you sign the new mortgage contract.
3. Transfer of the mortgage note: your former bank transfers the mortgage note (cedule hypothecaire) to the new lender. This is an administrative formality that takes a few days.
4. Repayment and new loan: on the maturity date, the new lender repays the old one and your new mortgage begins.

The cost of transferring the mortgage note is minimal (a few hundred francs at most). It is easily offset by the savings from a better rate.

Documents to prepare

To obtain competitive offers, you will need to provide lenders with a complete file. Here is the checklist:

• Current mortgage contract: amount, rate, maturity, conditions.
• Property valuation: latest valuation or updated purchase price.
• Salary certificates: the last 3 (or financial statements if self-employed).
• Tax return: the most recent, with tax assessment notice.
• Pension statements: 2nd pillar (LPP/BVG) and pillar 3a (if used for the mortgage).
• Identity documents: ID card or passport.
• Property description: cadastral plan, land registry extract.

A mortgage broker can help you compile this file and ensure all documents meet the requirements of different lenders.

Summary: your renewal timeline