Mortgage: rate trends and predictions

The current most attractive mortgage interest rates.

Saron mortgage from*

0.75%

Fixed-rate 10 years from

1.52%

Fixed-rate 5 years from

1.27%

* The value shown here for a SARON mortgage is made up of the current SARON (Swiss Average Rate Overnight) and the individual margin of the mortgage lender. Generally speaking, the interest rates shown are the best conditions currently available. Your personal interest rate may differ based on the loan-to-value ratio, affordability, mortgage volume and location of the property.

Mortgage rate trends in Switzerland

Mortgage interest rates have been largely stable since summer 2025. The strong Swiss franc insulates Switzerland from significant price increases and high inflation expectations. However, the globally high energy prices have not left Switzerland unaffected; in fact, they are acting as a brake on economic growth. Concerns about growth are keeping long-term interest rates in check and preventing a sharper rise in financing costs. Interest rate hikes are attributable to concerns about oil shortages, and this, in turn, is being counteracted by capital inflows from abroad and concerns about growth. Sometimes one factor predominates, then the other, resulting in a wave-like sideways movement.

Mortgage interest rate predictions through the end of 2026

The Swiss National Bank (SNB) is likely to leave its key interest rate unchanged at 0% until the end of the year. Interest rates are therefore expected to remain stable – or perhaps rise slightly – over the coming months, buoyed by low inflation, a weak economy and the strong Swiss franc. Internationally, however, there are increasing signs of a structurally higher interest rate environment, which makes a return to the rock-bottom interest rates seen in Switzerland prior to 2022 less and less likely. Instead, the current interest rate level in Switzerland could well become the new normal, remaining highly attractive by historical standards and in comparison to other countries.

Note: Predictions regarding future rate trends are highly complex, so should always be regarded as an estimate as opposed to a precise indicator.

Recommendations

Mortgage lenders’ profit margins are high and will likely remain so for the next few months. A comprehensive comparison of lenders is key to avoiding those with the highest margins.
It is still possible to secure attractive mortgage conditions, but hopes for a return to the ultra-low interest rates seen before 2022 have suffered a setback. Long-term mortgage rates have recently increased at a slower pace than short- and medium-term rates, making them an option worth considering.
Mortgage lenders continue to enforce restrictive lending policies. Accordingly, mortgage debtors would be well advised to allow themselves a little extra time – whether they are taking out a new mortgage, renewing an existing one or paying one off – in order to find the right lender.
Anyone considering reducing their mortgage in view of the abolition of the rental value should ensure they have sufficient reserves set aside for future renovations and to maintain their standard of living. Refinancing a mortgage during retirement is often more complicated than many people expect.

Your questions. Our answers.

What influences mortgage rate trends?

Mortgage rates in Switzerland are significantly influenced by the monetary policy of the Swiss National Bank (SNB). It sets an inflation target and the key interest rate. Other important factors include economic trends at home and abroad. The wider economy, expectations about inflation and unemployment rates play an important role here. Mortgage rates in Switzerland are also influenced by the international interest rate environment and capital flows, as well as the domestic property market.

What determines the price of a mortgage?

Basically, the price of a mortgage is determined by refinancing costs, administrative costs, the risk premium and the profit margin. The first two factors cannot be influenced, while you, the borrower, can influence the last two factors mentioned. You need to be capable of skilful negotiation and know what level of risk you present as a borrower. Keeping things low, in terms of affordability and the loan-to-value ratio, will help you reduce your risk. You will also be rewarded for taking out a mortgage for a large amount or having other products and services, such as accounts or savings products, with the provider.

What is the imputed interest rate?

The imputed interest rate refers to the interest rate for calculating affordability when a mortgage is to be issued. Since 2012, financing institutions have undertaken, through a form of self-regulation, to tighten the requirements for issuing mortgages and to use a notional interest rate of 5% for the purposes of calculating affordability. In doing so, they want to ensure that property buyers do not overextend themselves financially.

What kind of mortgage makes most sense at the moment?

It is not really possible to give an answer that applies across the board, as an individual customer’s situation is the decisive factor when it comes to choosing the right mortgage. Professional, independent advice is important for anyone looking to make a long-term decision on financing that reflects their tolerance and appetite for risk.