Mortgage Barometer 2025: how is the mortgage market developing?
Discover mortgage trends with the Comparis Mortgage Barometer. The analysis for the first quarter shows that Saron mortgages are now much cheaper than fixed-rate mortgages.
10.04.2025
iStock / photoschmidt
1. How have mortgage rates changed?
Interest rates for fixed-rate mortgages increased significantly in the first quarter. By contrast, since the four interest rate cuts in the previous year and the last rate cut in March to 0.25%, Saron mortgages have become much cheaper.
The benchmark rate for 10-year fixed-rate mortgages increased substantially in the first quarter from 1.63 to 1.92% (as of 31 March 2025). The current interest rate range is 1.5 to 2.1%. For comparison: in December 2024, the rates ranged from 1.1 to 1.7%.
Since the end of December 2024, the benchmark rate for 5-year fixed-rate mortgages has risen from 1.44 to 1.63% (as of 31 March 2025). The average interest rate range is around 1.2 to 1.7%.
Saron mortgages have declined further by around 1.5 percentage points after the four key interest rate cuts in the previous year and the last rate cut in March 2025. First-rate Saron mortgages currently cost around 0.7 to 1.2% on average.
2. Current mortgage rates in Switzerland
Mortgage rates vary significantly depending on the type of mortgage, term, lender, canton, loan-to-value ratio and affordability.
Comparis compared the average differences between the benchmark rate and the top interest rate of the Comparis mortgage partner HypoPlus. The comparison revealed a considerable savings potential.
Savings potential when taking out a mortgage
The interest rates actually negotiated are often below the benchmark rates.
For example: the best interest rate brokered by HypoPlus for a 10-year fixed-rate mortgage at the end of March 2025 was 1.52% – while the benchmark rate amounted to 1.92%.
You can find the latest rates, which are updated daily, in the Comparis mortgage rate overview.
| Term of the fixed-rate mortgage | Benchmark rate (as at 31.03.2025) | Top interest rate of HypoPlus (as at 31.03.2025) | Potential saving on a mortgage of 750,000 francs |
|---|---|---|---|
| 3 years | 1.46% | 1.06% | 9,000 francs |
| 5 years | 1.63% | 1.24% | 14,625 francs |
| 10 years | 1.92% | 1.52% | 30,000 francs |
| 15 years | 2.08% | 1.69% | 43,875 francs |
Source: Comparis, HypoPlus
The benchmark rates calculated by Comparis are the average rates advertised by around 30 mortgage lenders and can be negotiated.They are updated daily and published in the mortgage rate overview.
3. Mortgage market under the influence of global uncertainty
As expected, the Swiss National Bank (SNB) halved the key interest rate in March 2025 from 0.5 to 0.25%.
On the other hand, ongoing tensions regarding the US government’s planned tariffs and security policy led to a high degree of uncertainty regarding a renewed flare-up in inflation. As a result, capital market interest rates rose significantly in the first three months of the year.
Saron mortgages are much cheaper than fixed-rate mortgages
The great uncertainty about the effects of future tariffs and security policy has led to an increase in capital market interest rates and refinancing costs for banks. As a result, benchmark rates for fixed-rate mortgages are becoming a lot more expensive.
Saron mortgages have once again become cheaper by around 1.5 percentage points after the four key interest rate cuts in the past year and the last rate cut in March. Consequently, they are now much cheaper than fixed-rate mortgages.
Dirk Renkert explains:
Saron mortgages have fallen further with the interest rate cut in March. On the other hand, since the beginning of the year, the rates for fixed-rate mortgages have risen sharply due to the new uncertainties this year. With these two opposing effects, Saron mortgages are now much cheaper than fixed-rate mortgages. Most were surprised by the speed and extent of these effects.
4. Which type of mortgage is most popular?
The deals agreed through the Comparis mortgage partner HypoPlus indicate a turnaround: long-term mortgages are losing popularity.
The share of long-term fixed-rate mortgages (10 years or longer) fell from 80 to about 50% in the first quarter.
Mortgages with medium terms (4–7 years) were again in greater demand this quarter: their proportion rose to around 25%. For comparison: in the previous quarter, the share of these mortgages was just 11%.
Mortgages with short terms (up to three years, including Saron mortgages) are also gaining in popularity. While the share in the previous quarter was just 7%, it has now risen to 20%. Around 12% of this was attributable to Saron mortgages.
Many mortgage borrowers now prefer short to medium terms and are hoping that market rates will fall again soon.
Affordability: people often don't think about their income situation at retirement. If their income is lower than before retirement, the affordability of their mortgage is at risk. This also applies to early retirement. Tip: check whether partial amortization is possible.
Renewal of an expiring fixed-rate mortgage: be sure to observe the contractual notice periods. Start planning early and put together a dossier for lenders. The lead time is about two to three months.
Good to know: with a split into two or more tranches you can increase the flexibility of fixed-rate mortgages. You do not have to renew the entire mortgage, just the tranche that is due. However, division into tranches can weaken your negotiating position and make it more difficult to switch providers.
5. Data sources
HypoPlus, the mortgage partner of Comparis, provides the interest rates for the Comparis Mortgage Barometer. They are based on the benchmark rates of some 30 lenders. The data is updated daily and displayed in the mortgage rate overview.
The next Mortgage Barometer will appear in July 2025.
This article was first published on 05.10.2013
