Swiss National Bank’s Interest Rate Break Provides Relief for Saron Mortgages

This content was published on September 28, 2023 – 01:33

28. September 2023 – 01:33

(Keystone-SDA)

The interest rate break by the Swiss National Bank (SNB) has provided relief for shorter-term mortgages. According to an analysis by Comparis, Saron mortgages did not become more expensive. Ten-year fixed-rate mortgages, however, fell again.

The standard interest rates for fixed-rate mortgages across all terms were almost the same, as the analysis published on Thursday by the comparison portal Comparis showed.

The benchmark interest rate for ten-year fixed-rate mortgages was 2.73 percent at the end of September compared to 3 percent at the beginning of the year. The benchmark interest rate for medium terms remained almost unchanged at 2.68 percent.

There has been a slight trend towards shorter-term mortgage loans in the last three months. Almost every third mortgage borrower has opted for a Saron mortgage, it said. In the first half of the year it was one in four. The shift came at the expense of three to five-year fixed-rate mortgages. Ten-year fixed-rate mortgages were taken out more frequently.

Comparis recognized the hope of mortgage borrowers that the peak could be reached with the interest rate break. However, the SNB has signaled that it will further increase interest rates if inflation increases.