Summary

The Federal Office of Housing (BWO) has kept the mortgage reference interest rate unchanged at 1.25 percent as of June 2, 2026. The rate serves as a benchmark for rental price adjustments throughout Switzerland and is reassessed quarterly. The underlying average interest rate declined slightly in the first quarter of 2026 from 1.32 to 1.31 percent, but this is insufficient to trigger an adjustment to the commercially rounded reference rate. Tenants with contracts based on 1.5 percent or higher continue to have a right to a rate reduction.

Persons

No individuals named.

Topics

  • Swiss rental law
  • Mortgage interest rates
  • Rental price adjustments
  • Housing market

Clarus Lead

The stability of the reference interest rate signals a consolidation of the current interest rate situation in the mortgage market. For tenants and landlords, the stagnation provides planning certainty: no new automatic rental price adjustments take effect as long as the average interest rate does not fall below 1.13 or rise above 1.37 percent. This reflects the persistently moderate interest rate environment since September 2025 and provides guidance to rental parties for negotiations.

Detailed Summary

The mortgage reference interest rate is determined by the BWO based on the volume-weighted average interest rate of domestic mortgage claims. As of March 31, 2026, this average value stood at 1.31 percent, a decline of one-tenth of a percentage point compared to the previous quarter. However, through commercial rounding, the rate relevant for rental law remains at 1.25 percent – unchanged since September 2025.

The bandwidth for automatic adjustment is deliberately defined broadly: the rate remains stable as long as the average interest rate is between 1.13 and 1.37 percent. Only when these thresholds are exceeded or fallen below is the reference interest rate adjusted in quarter-percentage increments. In addition to interest rate changes, tenants can also claim adjustments due to inflation (up to 40 percent of the inflation rate) or changes in maintenance and operating costs. Exceptions apply to indexed or tiered rental rates as well as commercial spaces with revenue-based rents. Subsidized housing is often subject to special regulations. The BWO publishes the reference interest rates quarterly at www.referenzzinssatz.admin.ch; the next announcement will be made on September 1, 2026.

Key Statements

  • The mortgage reference interest rate remains at 1.25 percent and applies from June 2, 2026
  • The average interest rate declined slightly to 1.31 percent, but is insufficient for a rate adjustment
  • Tenants with older contracts (from 1.5 percent reference rate) continue to have a right to a rate reduction
  • In addition to interest rate changes, inflation and cost changes can justify rental price adjustments

Critical Questions

  1. Data Quality: How is the representativeness of volume-weighted average interest rates of domestic mortgage claims ensured – which financial institutions are included in the survey?

  2. Conflicts of Interest: What role do banking associations or the real estate industry play in determining the methodology for surveying the average interest rate?

  3. Causality: To what extent does the reference interest rate reflect current market interest rates when the adjustment bandwidth (1.13–1.37 percent) absorbs fluctuations of more than 0.2 percentage points?

  4. Feasibility: How are tenants practically informed that they have a right to a rate reduction – and what documentation is required to assert this right?

  5. Side Effects: Does the broad adjustment bandwidth result in delayed rental price changes and market interest rate movements not being reflected in rental contracts in a timely manner?

Source Directory

Primary Source: State Visit Poland / Mortgage Reference Interest Rate – https://www.news.admin.ch/de/newnsb/-yNZ1tD0lWovYtv7X5YWp

Further Information:

  • Federal Office of Housing (BWO): www.bwo.admin.ch/de/referenzzinssatz
  • Reference Interest Rate Portal: www.referenzzinssatz.admin.ch

Verification Status: ✓ 01.06.2026

This text was created with the support of an AI model. Editorial Responsibility: clarus.news | Fact-Check: 01.06.2026