Switzerland sees rise in mortgage rates in third quarter

Rise in mortgage rates in the third quarter Keystone-SDA

Mortgage costs rose in Switzerland in the third quarter compared with the previous three months, mainly due to the rise in interest rates on the capital markets, which drove up banks’ refinancing costs.

At the end of September, the indicative rate – calculated based on the average of rates from around 30 banks – stood at 2.07% for a ten-year fixed-rate mortgage, according to the online comparison portal Comparis.

For a five-year fixed-rate mortgage, the rate stood at 1.9% at the end of the quarter under review. At 1.75%, three-year fixed-rate mortgages were also higher than they had been three months earlier (1.38%).

“In the short term, given that inflation remains low, the Swiss National Bank is unlikely to be in any particular hurry to raise interest rates. However, the more favourable economic outlook, the weakness of the franc and rising energy prices have increased the likelihood of a tightening of monetary policy,” says Dirk Renkert, a financial expert quoted in the press release.

Higher interest rates abroad are increasingly having an impact on the Swiss capital market.

“This is why fixed-rate mortgages are becoming more expensive, even though the SNB is keeping its key interest rate at 0%. The indicative rates for 10-year fixed-rate mortgages, which are now above 2%, have not been this high since March 2025,” Renkert added.

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Translated from French, reviewed by an English Department journalist.