Current mortgage rates in Switzerland — March 2026

Tracking mortgage rate developments is essential for making the right decisions about your property financing, whether for a new purchase or the renewal of your existing mortgage. This page presents the current Swiss market rates, their history, the factors that influence them and expert forecasts for the coming months.

Macroeconomic context: the SNB policy rate

The Swiss National Bank (SNB) policy rate is the most influential parameter on mortgage rates in Switzerland. It determines the cost at which commercial banks refinance with the central bank, and consequently, the cost of credit for borrowers.

Recent evolution of the SNB policy rate

After reaching a peak of 1.75% in June 2023, the SNB policy rate was gradually lowered to reach 0.00% in June 2025, where it has remained since. This accommodative policy reflects controlled inflation in Switzerland and the SNB's desire to support economic growth.

Impact of the SNB rate on different mortgage types

SARON mortgages: direct impact

SARON (Swiss Average Rate Overnight) closely follows the SNB policy rate. In March 2026, with the SNB rate at 0.00%, SARON stands at approximately 0.00% to 0.05%. SARON mortgages, composed of SARON + a bank margin, therefore offer historically low rates.

• Typical bank margin: 0.60% to 0.80%
• Total SARON rate: 0.64% to 1.20% (depending on the bank and profile)
• For a CHF 800,000 mortgage: monthly interest of CHF 427 to CHF 800

SARON is recalculated daily and your rate is generally adjusted every 3 months. This means your monthly payments can vary from one quarter to the next, both upwards and downwards.

Fixed-rate mortgages: indirect impact

Fixed rates do not depend directly on the SNB rate but on swap rates (interest rate swap rates on financial markets). These swap rates reflect market expectations regarding future interest rate developments.

• 2-year fixed: Influenced by 2-year swap rates and short-term expectations
• 5-year fixed: Influenced by 5-year swap rates
• 10-year fixed: Influenced by 10-year swap rates and Confederation bonds
• 15-year fixed: Long maturities incorporate a higher risk premium

The yield curve is currently slightly upward-sloping: short-term rates are lower than long-term rates, which is the normal configuration. This reflects the expectation of a slight rise in rates over the long term.

How mortgage rates are determined

The rate your bank offers you results from several components:

1. Refinancing cost

This is the cost at which the bank itself obtains the funds it lends you. For a SARON mortgage, this cost is directly linked to the money market (SARON). For a fixed rate, the bank uses interest rate swaps to hedge its risk over the contract term.

2. Bank margin

The bank adds a margin to cover its operational costs, credit risk and generate profit. This margin typically ranges from 0.50% to 1.00% depending on the bank, local competition and volume of business.

3. Individual risk premium

Depending on your risk profile, the bank may adjust the rate up or down. Factors considered include:

• Loan-to-value (LTV): The higher your mortgage relative to the property value, the higher the risk
• Affordability: A comfortable charges-to-income ratio gives you better negotiating power
• Professional profile: Stable employment, seniority, industry sector
• Banking relationship: Existing clients with significant assets often benefit from preferential conditions
• Volume: A larger mortgage may justify a better rate

Indicative vs. effective rates

It is crucial to understand the difference between displayed and actual rates:

A mortgage broker generally obtains rates closer to the bottom of the range thanks to negotiating power and the volume of cases brought to banks. The difference can represent thousands of francs in savings over the mortgage term.

History of mortgage rates in Switzerland

The history of Swiss mortgage rates is marked by several distinct phases:

The 1990s: the property crisis

In the early 1990s, mortgage rates reached historic highs, exceeding 7% for fixed rates. This period caused a severe property crisis in Switzerland, with price drops of 30% to 50% in some regions. Many homeowners found themselves in difficulty, unable to bear the mortgage charges. It was this traumatic experience that led to the introduction of the 5% theoretical rate in affordability calculations.

The 2000s: gradual normalisation

Rates stabilised between 3% and 5%, offering a more predictable environment. The Swiss property market gradually recovered, supported by a robust economy and sustained demand.

2008-2022: the era of low rates

After the 2008 financial crisis, central banks worldwide lowered their policy rates to historically low levels. The SNB introduced negative rates in 2015 (-0.75%), an unprecedented situation. Swiss mortgage rates fell below 1% for 10-year fixed rates, fuelling a sharp rise in property prices.

2022-2023: the rate shock

Facing post-Covid inflationary pressure and the conflict in Ukraine, the SNB raised its policy rate from -0.75% to +1.75% in just over a year. 10-year fixed rates rose to nearly 3%, a shock for borrowers accustomed to rates below 1.5%.

2024-2026: the easing

With inflation under control, the SNB gradually reduced its policy rate back to 0.00%. Mortgage rates followed, returning to very attractive levels. The 10-year fixed rate stands between 1.50% and 2.05% in March 2026.

Rate forecasts for 2026 and beyond

Forecasts from major Swiss economic institutes for the coming quarters:

The consensus is clear: rates should remain stable and low in 2026. The SNB is not expected to raise its policy rate as long as inflation remains under control (target of 0% to 2%). Potential risks of an increase would be an unexpected resurgence of inflation or a change in European Central Bank (ECB) monetary policy.

Implications for borrowers

• New purchase: Current conditions are very favourable. It is a good time to borrow, whether in SARON or fixed rate.
• Renewal: If your mortgage was taken out between 2022 and 2024 at high rates, the current renewal will allow you to significantly reduce your monthly payments.
• SARON vs. fixed choice: With policy rates at 0%, SARON offers the best absolute rate. A 10-year fixed rate at around 1.75% nevertheless constitutes an excellent choice for those who prioritise security.

Rate specificities by lender type

Not all lenders offer the same rates. Here are the main categories:

Cantonal banks

Cantonal banks (BCGe, BCV, BCVs, BCN, BCF, etc.) generally offer competitive rates, especially for canton residents. They often benefit from a state guarantee that allows them to refinance at advantageous costs. French-speaking cantonal banks are among the most active mortgage lenders in Western Switzerland.

Major banks

UBS and other major banks offer competitive rates for large cases or existing clients with significant wealth. Their strength lies in product diversity and complex structuring capacity.

Insurance companies

Insurance companies (Swiss Life, Allianz, AXA, Zurich, Helvetia, etc.) are important players in the Swiss mortgage market. They often offer very competitive long-term fixed rates (10-15 years), as they seek stable investments to cover their life insurance commitments.

Pension funds

Some pension funds grant mortgage loans to their members at preferential conditions. This is an often overlooked option that can offer very advantageous rates.

Online banks and fintech

Players such as Valiant, Migros Bank or online platforms offer aggressive rates thanks to reduced cost structures. They can be an excellent alternative for standard cases.

How to negotiate the best rate

Here are the levers for obtaining the best conditions:

1. Compare at least 3 to 5 offers: Do not settle for your usual bank. The gap between the best and worst offer can reach 0.50%.
2. Prepare a solid file: Financial statements, payslips, tax return, land registry extract — a complete file inspires confidence and accelerates the process.
3. Use a broker: Brokers like Vision Hypotheques negotiate daily with banks and obtain preferential conditions.
4. Leverage volume: Centralise your assets (accounts, investments, pensions) with the lender to obtain a better rate.
5. Choose the right moment: Rates evolve daily. Your broker can advise you on optimal timing.

Mortgage rate glossary

• SARON: Swiss Average Rate Overnight. Reference rate for the Swiss money market, calculated by SIX Swiss Exchange.
• Swap rate: Exchange rate used on financial markets to swap a variable rate for a fixed rate. Basis for fixed mortgage rate calculations.
• SNB policy rate: Rate set by the Swiss National Bank to steer monetary policy. Direct influence on SARON.
• Bank margin: Difference between the bank's refinancing cost and the rate charged to the client.
• Forward rate: Fixed rate reserved in advance for a future maturity (6 to 24 months). Allows securing a rate before renewal.
• LTV (Loan-to-Value): Ratio between the mortgage amount and the property value. Usual maximum: 80%.
• Reference rate: Rate calculated by the Federal Housing Office, based on the average rate of outstanding mortgages. Used for rent calculations.