Mortgage: rate trends and predictions

The current most attractive mortgage interest rates.

Saron mortgage from*

0.7%

Fixed-rate 10 years from

1.4%

Fixed-rate 5 years from

1.07%

* 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. Inflation remains low in Switzerland, while the Swiss franc has appreciated slightly and the economy, particularly industry and exports, is cooling. SECO is forecasting a slowdown in Swiss economic growth from 1.3% (2025) to 0.9% in 2026. Uncertainty about the long-term trend continues to be reflected in the large interest rate differential between short- and long-term mortgages. Mortgage takers are increasingly opting for medium-length terms of five to nine years.

Mortgage interest rate forecast to mid-2026

If the impact of US tariff policy and geopolitical conflicts stays within the expected range, there is reason to believe that mortgage rates will continue to be attractive. Inflation in Switzerland remains stable at a low level, and the national currency is currently very resilient against the euro and dollar. Accordingly, the base rate is expected to sit at zero for an extended period of time. If this materialises in the first quarter of 2026, interest rates for long-term fixed-rate mortgages are likely to ease slightly by mid-2026, while rates on short- and medium-term mortgages and Saron mortgages appear to have already bottomed out.

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

Recommendations

Attractive mortgage terms are still possible. However, undertaking a comprehensive comparison of providers remains crucial in order to avoid quotes with excessive margins.
Saron mortgages reached their lowest point back in June 2025. Margins can sometimes be high and interest rates – unlike those for fixed-rate mortgages – are not fixed. It may therefore make sense to replace Saron mortgages with short- or medium-term fixed-rate mortgages.
Many mortgage providers have tightened their lending practices over the course of the year due to new regulatory requirements, become more selective when it comes to new policies and renewals. For this reason, mortgage takers should currently be allowing themselves more time to select the right provider.
Anyone looking to reduce their mortgage in view of the potential abolition of the imputed rental value should set aside enough capital for future renovations and to maintain their standard of living. It can often be tricky to increase a mortgage or take out a new one at a later date after retirement age has been reached.

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.