Business · Economy · 19 hrs ago
Swiss fixed mortgage rates rise despite the SNB holding its key rate at zero
Swiss fixed mortgage rates are rising, even though the Swiss National Bank has kept its key rate at zero.
This affects homeowners and buyers across Switzerland, especially those renewing a mortgage soon.
Fixed rates follow longer-term market expectations, while Saron mortgages track the SNB’s current key rate and have so far stayed cheaper.
Published guidance puts a ten-year fixed mortgage at about 2%, up half a percentage point since March; on 800,000 francs, that means 4,000 francs more in yearly interest.
More borrowers are choosing Saron, whose share has risen from about one-third in March to over 40%, but its rate can climb quickly if inflation pushes interest rates higher.
Rising bond yields abroad are feeding into Swiss fixed mortgage costs, and markets expect the SNB may raise rates once or twice in 2027.
Homeowners nearing renewal can compare lenders and consider fixing a future rate with a forward mortgage, which can lock in financing six or 12 months ahead.
Swiss fixed mortgage rates have risen even as the Swiss National Bank keeps its key rate at zero.
A ten-year fixed mortgage is around 2 percent, about half a percentage point higher than in March, according to published reference rates cited by NZZ.
The average mortgage rate on hypotheke.ch is around 1.7 percent, up from below 1.6 percent in early summer and 1.44 percent at the start of the year.
Fixed mortgage rates reflect longer-term market expectations, while SARON mortgages track the SNB key rate and have so far avoided the increase.
Borrowers can face large cost differences between lenders, and experts warn that SARON rates could rise if inflation pushes up market rates.
- Who
- Swiss homeowners and mortgage borrowers are affected. Banks and other mortgage providers set the rates.
- What
- Fixed mortgage rates in Switzerland have risen while the SNB key rate remains at zero.
- When
- Rates rose during the third quarter of 2026; reports were published on October 15 and 17, 2026.
- Where
- Switzerland.
- Why
- Fixed mortgage rates reflect long-term market rates, which have risen amid higher government bond yields and inflation concerns abroad.
This story does not have two clearly opposing sides.
The average mortgage rate on hypotheke.ch stood at 1.44 percent.
A ten-year fixed mortgage was around half a percentage point cheaper than the roughly 2 percent rate reported by NZZ.
The average mortgage rate index was below 1.6 percent.
Fixed mortgage rates rose broadly across Switzerland.
Cash and NZZ reported the increase in fixed mortgage rates.
- SNB key rate
- 0 percent
- Ten-year fixed mortgage
- Around 2 percent; about 0.5 percentage point above March
- Average mortgage rate
- Around 1.7 percent, according to hypotheke.ch
- SARON mortgage share
- Over 40 percent, up from about one-third in March
- Raiffeisen two-year rate
- 1.62 percent, up from 1.38 percent in early June
- Generali ten-year rate
- 1.82 percent, compared with Raiffeisen’s 2.18 percent
3 sources
What people are saying
Why take out a fixed mortgage at 2 percent today when you paid only 1.5 percent six months ago?
If you are going to lock in a rate, it makes sense to take a longer fixed mortgage with a term of eight or ten years.
The share of SARON mortgages has risen significantly from about a third in March to over 40 percent now.
Anyone who cannot cope well with higher interest rates, or sleeps badly because of them, is still better off with a fixed mortgage.