Reference interest rate remains low at 3%
Doreen Hartmann,
real estate expert
at comparis.ch
01 September 2010 - Living
The Federal Housing Office (FHO) announced on 1st September that the reference interest rate for mortgages remains at 3 percent. The Swiss National Bank surveys quarterly the average interest rate of all existing mortgage credits on the appointed date. This interest rate is calculated based on the average mortgage rates paid by property owners. The interest rate is published quarterly.
As the mortgage rates are likely to rise in future, we have to expect that the low reference interest rate will be more than 3 percent in the long run. It has remained unaltered for a year. If the reference interest rate increases, landlords can adjust the rent to the new interest rate. But no worries for tenants: in the past, increases were made in small steps.
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