Three Modes of Use

Individuality is our strength.

The three types of Premium Mortgage enable clients to plan, calculate and act according to their wishes and objectives. Talk to our experts. We are very pleased to explain to you all the facts, the differences, and the advantages of each of the three types of mortgages, and work out an optimum solution for you.

The variable mortgage.

• the classic mortgage, with variable interest rates
• suitable for 1st and 2nd mortgages
• period: unlimited
• tranche: no specifications
• reacts to fluctuations in money and capital markets
• client benefits when interest rate falls,  but an increase in rate of interest is also possible
• ability at any time to change to another mortgage at short notice (Fixed mortgage or LIBOR mortgage)
• cancellation period of 3 months
• interest payment: half yearly

The fixed mortgage.

• only for 1st mortgages
• period 1 to 10 years
• minimum tranche: CHF 100’000.-
• clear rules when agreement is concluded (amount of credit, rate of interest, period)
• unchangeable rate of interest during the fixed period
• after expiry of  a tranche, change to another mortgage is possible
• early termination will require a compensation charge
• in case of premature termination, a compensation charge is levied
• interest payment: half yearly

The LIBOR mortgage.

• only on 1st mortgages
• 1 to 12 months
• minimum tranche: CHF 300’000.-
• clear rules when agreement is concluded (amount of credit, rate of interest, period)
• unchangeable rate of interest during the fixed period
• as LIBOR is governed by the financial markets, the rate of interest tends to be more favorable, as a general rule, than that of the capital markets
• mortgagee can benefit from low interest over short period
• in case of increasing interest rate, mortgagee can change to another mode
• in case of premature termination, a compensation charge is levied
• a maximum interest ceiling is not required because we do not specify a fixed term when setting the credit limit with the Premium Mortgage
• interest payment date at the end of the LIBOR-Mortgage

Client-specific alternatives. 

Centrum Bank's Premium Mortgage: favourable conditions and a secure foundation for your future. You decide which mortgage type or combination best suits your wishes and requirements.