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.
The LIBOR rate may be replaced beyond 2021Following 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.
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.
Quality support throughout your projetAre 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.
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.
A flexible mortgage to optimise your borrowing
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).
The interest on the loan can be deducted from your annual income and the capital borrowed can be deducted from your personal wealth.
Very interesting tax benefits
Each year, your mortgage loan earns you interest bonuses on your BCGE Epargne account thanks to the Avantage service loyalty programme.
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