Libor rate mortgage

Libor rate mortgage

The Libor rate mortgage guarantees you a high level of freedom by enabling you to modify the conditions of your loan or even to make quarterly repayments.

Realise your acquisition project with quality support
Maximum flexibility with rate optimisation
Very interesting tax deductions
An interest bonus on your savings thanks to the Avantage service loyalty programme

The LIBOR rate may be replaced beyond 2021

Following the announcement by the UK Financial Conduct Authority on 27 July 2017, the fixing of the LIBOR reference interest rate will probably be abandoned at the end of 2021. To date, there is no impact on the products offered by BCGE.
On 27 July 2017, the Financial Conduct Authority announced that it would no longer compel member banks to fix the LIBOR benchmark interest rate beyond 2021. This decision is likely to have an impact on the Swiss market for loans to individuals and businesses.
LIBOR stands for London Interbank Offered Rate. This benchmark interest rate is fixed daily on the basis of rate conditions declared by a panel of banks, in different currencies (USD, CHF, GBP, EUR and JPY) and for different maturities. It allows commercial banks to determine the interest rates applicable to loans indexed on the money market, such as corporate loans or LIBOR mortgages.
The Financial Conduct Authority justified its decision by arguing that the fixing of the LIBOR rate is not primarily based on transactions. In addition, the volume of unsecured transactions on the interbank market has fallen sharply. As a result, the rate loses its relevance.

The National Working Group on Swiss Franc Reference Rates (NWG) aims to identify alternative benchmark interest rates. It reviews proposals for the reform of benchmark interest rates and discusses the latest international developments. The presidency is held jointly by a representative of the private sector and a representative of the Swiss National Bank.
On 5 October 2017, the working group recommended that the SARON (Swiss Average Rate Overnight) be used as an alternative rate as soon as possible. The SARON is the overnight benchmark interest rate based on Repo market data (Sale and Repurchase Agreement) in Swiss francs (pledge rate).

For the time being, there is no impact on the products offered by BCGE. Clients can continue to obtain LIBOR mortgages. A new equivalent benchmark rate for the client will be applied when LIBOR is no longer used or available.
BCGE is currently studying alternatives to replace the LIBOR rate and will communicate any new developments in due course.

The essentials

Quality support throughout your projet

Are you planning to build, buy or renovate a property? You are already a homeowner and are looking for the financing options best suited to your situation? We offer you simple, advantageous mortgage solutions that can be adapted to your needs. 
The acquisition of a property requires competent advice, quality support and in-depth dialogue with a specialist. Talk to your adviser.

A flexible mortgage to optimise your borrowing

The Libor* rate mortgage offers immense flexibility and carries one of the lowest money market rates. You are able to modify the conditions of your loan or even to make quarterly repayments. To get the best from it, we strongly advise you to closely follow the rates' trend on the financial markets.  
You can react very quickly to rises in interest rates by simply asking your adviser to transform your Libor rate mortgage into a fixed rate mortgage as from the beginning of the next calendar quarter based on the rate on the day you make your request. In this way you optimise the rate risk by spreading your loan over a short-term rate (Libor rate) and a medium- or long-term rate (fixed rate of 2 to 15 years).

Very interesting tax benefits

The interest on the loan can be deducted from your annual income and the capital borrowed can be deducted from your personal wealth.

Avantage service loyalty programme

Each year, your mortgage loan earns you interest bonuses on your BCGE Epargne account thanks to the Avantage service loyalty programme. 

Receive a weather station for free

When concluding a mortgage loan with the BCGE, we will offer you a weather station for your future home. Thanks to this high-quality product, weather forecasts will hold no more secrets for you. 
* LIBOR: London Interbank Offered Rate

Minimum amount

CHF 100,000

Interest rate

The interest rate on your mortgage loan is determined based on the 3-month CHF LIBOR* rate, published each day in the financial pages of the leading daily newspapers. The interest rate is revised every 3 months, at the beginning of each calendar quarter. For current rates, please ask your adviser.

Duration of the Libor rate contract

Open-end. Unless you tell us otherwise, the loan will automatically be renewed at each rate maturity date. At each renewal you can opt for a fixed or variable rate mortgage at very competitive conditions. 


You can pay off your Libor rate loan or make a voluntary repayment of the amount of your choice at each rate maturity date.


In order to minimise rate fluctuation risks, your mortgage loan will ideally comprise a tranche based on the 3-month Libor rate, in addition to one or more fixed rate tranches. As a general rule, the amount of your loan financed by the Libor rate should not exceed 50% of the value of the property collateral.

Optional services

  • Direct or indirect amortisation (Epargne 3 account or mixed life insurance)
  • Possibility of including risk cover (death/disability) with Swisscanto Safe insurance
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