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.
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