Mortgage Barometer 2025: how is the mortgage market developing?
The Comparis Mortgage Barometer highlights the latest mortgage trends. The analysis for the second quarter shows that Saron mortgages have become even cheaper with the key interest rate cut.
08.07.2025
iStock / photoschmidt
1. How have mortgage rates changed?
Interest rates for fixed-rate mortgages have now dropped again after rising at the beginning of the year. Due to the the key interest rate falling back to 0% in June, the interest rates for Saron mortgages are also plummeting again.
The benchmark rate for 10-year fixed-rate mortgages fell from 1.92% to 1.77% in the first quarter (as of 30 June 2025) – the current interest rate range is 1.4% to 1.9%. In comparison, the range was 1.5% to 2.1% in March 2025.
The benchmark rate for 5-year fixed-rate mortgages has fallen by 0.23 percentage points to 1.63% since the end of March 2025 (as of 30 June 2025). They are currently being offered at 1.0% to 1.5%.
Saron mortgages have detracted further following the previous key interest rate cuts and the last rate cut in June 2025. First-rate Saron mortgages currently cost around 0.9% to 1.2%.
2. Saron mortgages fall into negative territory: what does this mean for mortgage borrowers?
As expected, the Swiss National Bank (SNB) from 0.25% to 0% in June 2025. The Saron mortgage rate, which is strongly based on the key interest rate, even fell into negative territory, standing at -0.03%. For mortgage borrowers, however, this does not mean that interest rates will also fall into negative territory. Finance expert Dirk Renkert explains:
After the last SNB key interest rate cut which saw it drop to 0%, the Saron is slightly in negative territory at -0.03%. In this case, the contractual value for Saron mortgages is always 0%. The level of Saron mortgages is now determined exclusively by the bank's margin. Saron mortgages can only become cheaper if the banks reduce their margins.
3. Current mortgage rates in Switzerland
Mortgage rates vary significantly depending on
the model
the term
the provider
the canton
Comparis compared the average differences between the benchmark rate and the best interest rate offered by 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 June 2025 was 1.37% – while the benchmark rate amounted to 1.77%. For the entire term, this means a saving of around 30,000 francs on a mortgage of 750,000 francs.
You can find the latest rates, which are updated daily, in the Comparis mortgage rate overview.
| Fixed-rate mortgage term | Benchmark rate (as at 31 March 2025) | Best interest rate from HypoPlus (as at 31 March 2025) | Potential savings on a mortgage of 750,000 francs |
|---|---|---|---|
| 3 years | 1.21% | 0.92% | 6,525 francs |
| 5 years | 1.40% | 1.00% | 15,000 francs |
| 10 years | 1.77% | 1.37% | 30,000 francs |
| 15 years | 1.93% | 1.61% | 36,000 francs |
Source: Comparis, HypoPlus
The benchmark rates calculated by Comparis are the average rates advertised by around 30 mortgage lenders that cannot be negotiated. They are updated daily and published in the mortgage rate overview.
4. Which type of mortgage is most popular?
There have been no major changes in the choice of term in the last three months in the deals agreed through Comparis' mortgage partner HypoPlus.
The proportion of long-term fixed-rate mortgages (10 years or longer) taken out remains unchanged at just under 50%.
Mortgages with medium terms (4 to 7 years) accounted for around a quarter of all contracts concluded this quarter – a similar figure to the previous quarter.
The proportion of mortgages with short terms (up to 3 years, including Saron mortgages) also remains stable at around 20%. Approximately half of these are Saron mortgages.
In principle, mortgage borrowers take a sufficient amount of time to decide on the contract. However, recent developments have shown that mortgage rates can move quickly in one direction or the other. When conditions change in their favour, borrowers are keen to secure the advantage by taking out a mortgage quickly.
Affordability: people often don't think about their income situation at retirement. If the income is lower than before retirement, the affordability of the mortgage is at risk. This also applies to early retirement. Tip: check whether partial amortisation 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 approximately two to three months.
Good to know: by splitting them 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 be published in October 2025.
This article was first published on 05.10.2013
