Floating interest rates similar to fixed-rate mortgages
The interest rates for Saron mortgages not necessarily cheaper than those for fixed-rate mortgages
Keystone / Steffen Schmidt
The interest rates for Saron mortgages in Switzerland are no longer always cheaper than those for fixed-rate mortgages. At the same time, the difference in interest rates between short-term and longer-term mortgages has increased again.
According to an analysis published on Wednesday by the online comparison service Moneyland.ch, the interest rate on Saron mortgages was on average 2.61% at the end of October. It is therefore at the same level as comparable six-year fixed-rate mortgages. Fixed-rate mortgages with a term of less than six years are slightly cheaper than Saron mortgages and longer-term mortgages are slightly more expensive.
This means that the interest rates for Saron mortgages have risen by more than 1.5% points within just over a year. In July 2022, before the Swiss National Bank raised the key interest rate back into positive territory, the average interest rate was just under one percent.
According to Moneyland, fixed-rate mortgages with a term of two or five years are currently quoted at 2.57%. For ten-year mortgages, the average interest rate is 2.71%. This means that longer-term mortgages have once again become more expensive than shorter-term mortgages. A month ago they cost almost the same.
It is said that a fall in interest rates on short- and medium-term fixed-rate mortgages is currently not expected. “If the market were to assume that we were facing a sustained reduction in interest rates, the short-term fixed-rate mortgages would not be at a similar level today, but would be significantly lower than the Saron mortgages,” said Moneyland analyst Felix Oeschger. According to analysts, major interest rate cuts on other mortgages are also unlikely in the next few months.
More
More
Price expectations for Swiss real estate are falling
This content was published on
Professional property investors predict a drop in Swiss real estate prices.
This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles. You can find them here.
If you want to know more about how we work, have a look here, and if you have feedback on this news story please write to english@swissinfo.ch.
External Content
Your subscription could not be saved. Please try again.
Almost finished… We need to confirm your email address. To complete the subscription process, please click the link in the email we just sent you.
Popular Stories
More
Climate change
Switzerland turns train tracks into solar power plants
In Switzerland more people are being referred to electrical therapies or psychedelic-assisted psychotherapy. Are there similar approaches where you live?
Living longer: What do you think about the longevity trend?
The longevity market is booming thanks in part to advances in the science of ageing. What do you think of the idea of significantly extending human lifespan?
Swiss foreign minister rejects mandatory referendum for EU deals
This content was published on
Swiss Foreign Minister Ignazio Cassis defended the government’s decision to make EU deals subject to an optional rather than a mandatory referendum.
Pro-choice and anti-abortion activists face off in Geneva
This content was published on
Anti-abortion Christian groups held a silent prayer in front of the Geneva train station on Saturday, to the whistles and shouts of pro-choice demonstrators.
Swiss army soldier seriously injured in accident on Simplon Pass
This content was published on
A member of the Swiss army was seriously injured on Friday while manoeuvring a self-propelled howitzer on the Simplon Pass.
Basel attempts world‘s largest over-60s disco before Eurovision Song Contest
This content was published on
It was billed as a world record attempt for the biggest over-60s disco of all time. But most visitors came to Basel to have fun.
Basel prepares 700 volunteers for the Eurovision Song Contest
This content was published on
Around 320 people took part in one of the two official information events for the Eurovision Song Contest (ESC) in Basel on Friday.
More Swiss soldiers involved in accidents during training in Austria
This content was published on
The Swiss army has reported various accidents involving Swiss soldiers during the exercise “TRIAS 25” in Austria. Some have led to hospitalisations.
Swiss court rules vegan meat substitutes can’t use animal names
This content was published on
Vegan meat substitutes may not bear animal names such as “planted.chicken” according to a ruling by the Swiss Federal Supreme Court.
Swiss cantons spared duty to create new traveller transit sites
This content was published on
Swiss cantons will no longer be formally obliged by the government to create new transit sites for the travelling community.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
How Google is driving up rents in Zurich
This content was published on
Rents for flats in Zurich, Switzerland’s business capital, are reaching stratospheric levels – one reason for this is Google’s international campus.
Real estate experts warn Switzerland unprepared for population boom
This content was published on
The Swiss population in 2023 is expected to increase by much more than official statistics predicted, argue some real estate experts.
Zurich poses highest real estate bubble risk globally
This content was published on
The threat of real estate bubbles has diminished worldwide, leaving Zurich and Tokyo as the only global cities remaining in the risk zone.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.