Summary
Ten-year fixed mortgages in Switzerland have fallen to historically low levels – down to 1.23 percent. This surprised experts who had expected rising interest rates. The development is explained by low inflation, a strong franc, and weak German economic growth. While long-term mortgages benefit, short-term conditions remain stable. For buyers with long-term planning, concluding a fixed-rate mortgage is now worthwhile.
People
- Florian Schubiger (hypotheke.ch Managing Director)
Topics
- Mortgage Interest Rates
- Swiss Financial Market
- Real Estate Financing
- SNB Monetary Policy
Clarus Lead
Interest rates for long-term fixed mortgages have surprisingly collapsed in Switzerland. Ten-year mortgages currently cost only 1.23 to 1.34 percent – as little as in early 2022 during the negative interest rate phase. This development forces homeowners and buyers to make rapid refinancing decisions, as experts again expect rising interest rates. The decline is driven by low Swiss inflation, the strong franc, and weak German economic growth.
Detailed Summary
Mortgage interest rates have shifted significantly downward over the past seven weeks. While at the end of 2025, 1.5 percent or more was still common for ten-year fixed mortgages, it is now possible to conclude mortgages below 1.3 percent. The best offer on the hypotheke.ch platform stands at 1.23 percent – but requires a maximum loan-to-value ratio of 65 percent. Buyers with higher loan-to-value ratios up to 80 percent can also achieve rates of 1.34 percent depending on creditworthiness.
This price decline surprised the industry. Experts like Florian Schubiger from hypotheke.ch had expected rising interest rates as late as the end of 2025. The explanation lies in several factors: low Swiss inflation reduces inflation expectations, a record-high franc has a disinflationary effect, and disappointing German economic growth burdens European demand. The Swiss National Bank has kept its key rate unchanged at zero percent since June – but indirectly supports the interest rate decline at the long end.
However, the relief is limited to long-term mortgages. Five- to seven-year fixed mortgages have remained stable since the beginning of the year. Short-term SARON mortgages, however, are becoming cheaper as banks reduce margins and competition increases. With over 100 providers in Switzerland, those who negotiate can achieve better terms.
Key Takeaways
- Ten-year fixed mortgages fall to 1.23–1.34 percent – lowest rates since April 2022
- Low inflation, strong franc, and weak German economy drive the interest rate decline
- Long-term mortgages benefit, short-term remain stable; SARON mortgages become cheaper
- Experts recommend long-term fixed mortgages for buyers with stable planning
- Speculations on switching from SARON to fixed mortgages are usually realized too late
Critical Questions
Sustainability of Rate Cuts: Is the interest rate decline based on fundamental changes (structurally lower inflation) or temporary market factors (franc volatility) that could reverse in the short term?
SNB Scope: How likely are SNB key rate increases in the next 12 months, and would these automatically push long-term mortgage rates upward?
Comparability to 2022: Are the conditions from 2022 (negative interest rates, different market dynamics) truly comparable to today, or are these merely superficial parallels?
Market Concentration: How representative are the best rates on hypotheke.ch for the overall market, and how many borrowers actually have access to these terms?
Risk Premiums: Will banks soon increase margins on longer-term mortgages for profitability reasons, even if global interest rates remain stable?
Macroeconomic Dependence: To what extent are Swiss mortgage rates dependent on German economic performance, and how robust is this transmission?
Sources
Primary Source: Surprising Decline: Ten-Year Mortgages as Cheap as They Haven't Been Since 2022 – 20 Minuten, 18.02.2026
Verification Status: ✓ 18.02.2026
This text was created with the support of an AI model. Editorial Responsibility: clarus.news | Fact Check: 18.02.2026