Swiss Mortgage Rates Remain Stable in Third Quarter, saron Mortgages Still Most Advantageous
The Swiss mortgage market experienced minimal change in the third quarter of 2025, according too a recent analysis by Comparis. As of the end of September, Saron mortgages continued to offer the most favorable rates.
The comparison site’s mortgage barometer indicated that Saron mortgages averaged between 0.7% and 1.2%. Ten-year fixed-rate mortgages averaged between 1.3% and 1.8%, while five-year fixed-rate mortgages were offered between 1.0% and 1.5%.
This stability is linked to the Swiss National Bank (SNB) maintaining its key interest rate at 0% following August’s inflation rate of 0.2%, which fell within the target range of 0-2%. “market players were already expecting this. there have therefore been no major changes in mortgage rates,” explained Dirk Renkert, an expert at Argent Comparis.
Reference interest rates, published by over 30 credit institutions for ten-year fixed mortgages, stood at 1.68% at the end of September – a decrease of 0.09 percentage points compared to the end of June. Though,this represents only a 0.01 percentage point decrease as the beginning of the year. The indicative rate for five-year fixed mortgages was 1.39%, similar to the 1.4% recorded at the end of June, but down from 1.5% at the start of the year.
Thes fixed-rate terms are influenced by capital market interest rates, which saw a continued decline in the third quarter. The ten-year federal bond yield closed at 0.2% at the end of September, down 0.21 percentage points from 0.41% at the end of June, and 0.27% at the start of the year.
HypoPlus, Comparis’ mortgage partner, observed a slight shift in mortgage term preferences over the past three months. mortgages with terms of up to three years, including Saron mortgages, accounted for approximately 18% of subscriptions, slightly down from just under 20% in the previous quarter. The share of Saron mortgages specifically decreased by a third, representing around 7% of all subscriptions.
Declining Appeal of Saron Mortgages
The attractiveness of Saron mortgages has diminished due to increased margins demanded by providers.Borrowers are now prioritizing predictability, leading to a slight increase in medium-term mortgage subscriptions at the expense of Saron options. While Saron mortgages remain cheaper than fixed-rate mortgages, Renkert cautioned, “Saron mortgages are therefore only suitable for mortgage borrowers who can bear the risk of interest rate fluctuations.”
Medium-term fixed-rate mortgages (four to seven years) comprised around a third of all contracts concluded in the third quarter, up from a quarter in the first two quarters. Long-term fixed-rate mortgages (ten years or more) continued to be popular, representing approximately 43% of all contracts.
Comparis predicts that notable further declines in mortgage rates are unlikely. “Geopolitical tensions remain high and the effects of customs policy are unpredictable,” the analysis stated. Inflation is also on track, and a return to negative interest rates is considered unlikely unless faced with an “extreme emergency” by the SNB, according to Renkert.
(Keystone-ATS) - Source of the original report.
This article was published on October 9, 2025 – 07:13.
