The market is becoming favorable for mortgage borrowers
Mortgages are currently more attractive than they were in March.
Those looking to take out or renew mortgages are on the lookout. The Comparis mortgage barometer for the second quarter of 2025 confirms this: since the Swiss National Bank (SNB) announced its key interest rate cut from 0.25% to 0% in June , mortgage rates have been falling.
Ten-year fixed-rate mortgages cost an average of 1.4 to 1.9 percent, while five-year mortgages are offered at between 1.0 and 1.5 percent. Saron mortgages, which fluctuate based on the SNB's key interest rate, have also become cheaper, with an interest rate of 0 percent.
"The SNB's zero-interest-rate policy is putting pressure on banks' interest margins, leading to a decline in profitability. They now have to compensate for this with a higher volume (of mortgages)," explains Dirk Renkert, an expert at Comparis. "Competition is intensifying, and the major providers are now increasingly competing with each other with attractive terms to attract mortgage borrowers."
But for now, the Swiss haven't changed their habits. According to HypoPlus, Comparis' mortgage partner, they are increasingly favoring 10-year fixed-rate mortgages. These remain in high demand and represent 50% of contracts signed. This is followed by 4- to 7-year fixed-rate mortgages, which represent a quarter of contracts, and 3-year fixed-rate mortgages (around 20%).
By coincidence, "Le Nouvelliste" published an article on Tuesday claiming that mortgage prices would not, on the contrary, become more advantageous than they are today, despite the SNB's key interest rate cut. According to experts interviewed by the daily , there is no direct link between the monetary policy decided by the SNB and long-term rates. Furthermore, banks saw their margins shrink in 2024. They are therefore unlikely to be particularly aggressive in their mortgage offerings. "Even if this would allow them to gain clients, these new businesses must be sufficiently profitable," the newspaper explains. Furthermore, the end of Credit Suisse means there is one less bank, and therefore less competition as well.
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