Mortgage Barometer 2024: mortgage trends in Switzerland
Discover the latest mortgage trends with the Comparis Mortgage Barometer. Analysis of the first quarter shows Saron mortgages are less popular.
18.04.2024
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1. How have benchmark mortgage rates changed?
Fixed-rate mortgages were about as expensive during the first quarter of 2024 as they were at the beginning of the year.
From the beginning of the year until the end of March 2024, the benchmark interest rate for 10-year fixed-rate mortgages remained the same – at 2.26%.
The benchmark interest rate for 5-year fixed-rate mortgages has risen slightly since the beginning of the year. It was 2.15% at the end of March.
Saron mortgages have not become cheaper – despite a reduction in the key interest rate to 1.5%. This is because many banks already expected a reduction in the key interest rate, and therefore lowered the interest rates for Saron mortgages as early as the end of 2023.
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. The benchmark rates calculated by Comparis are the average rates advertised by around 30 mortgage lenders and can be negotiated.
Potential savings when taking out a mortgage
In most cases, the interest rates actually negotiated are below the official benchmark rates. For example, the best rate brokered by HypoPlus, the mortgage partner of Comparis, for a 10-year fixed-rate mortgage in mid-April was 1.65%. The reference interest rate at this time was 2.28%.
You can find the latest mortgage interest rates, which are updated daily, in the Comparis mortgage rate overview.
| Term of fixed-rate mortgage | Benchmark rate (as at 12 April 2024) | Best interest rate from HypoPlus (as at 12 April 2024) | Potential savings on a mortgage of 750,000 francs |
|---|---|---|---|
| 3-year fixed-rate mortgage | 2.13% | 1.66% | 10,575 francs |
| 5-year fixed-rate mortgage | 2.15% | 1.64% | 19,125 francs |
| 10-year fixed-rate mortgage | 2.28% | 1.65% | 47,250 francs |
| 15-year fixed-rate mortgage | 2.39% | 1.79% | 67,500 francs |
Source: Comparis, HypoPlus
3. Stable interest rates due to SNB interest rate-hike pause
Surprisingly, the Swiss National Bank (SNB) lowered the key interest rate in March – from 1.75% to 1.5%.
The SNB thus lowered the key interest rate earlier than the major international central banks. The reason: while the European Central Bank and the US Federal Reserve are still struggling with inflation rates of over 2%, the situation in Switzerland has eased. Here, inflation has been below 2% for several months.
“The advance of the SNB could also prove to be a boomerang if the franc continues to lose value. This could lead to imported inflation.”
Dirk Renkert, Comparis expert
4. Which type of mortgage is most popular?
Comparis’ mortgage partner HypoPlus has seen the share of Saron mortgages decrease significantly in the last year: Only about 3% of mortgage holders chose a Saron mortgage.
Instead, the proportion of 5-year fixed-rate mortgages increased significantly. About a third of mortgages have a five-year term.
The proportion of 10-year and longer fixed-rate mortgages increased to around half of all mortgage holders.
“In an environment of great uncertainty, fixed-rate mortgages with the longest possible term offer high planning security.”
Dirk Renkert, Comparis expert
Affordability: people often forget about their income situation at retirement. If your income is lower than before retirement, the affordability of the mortgage is at risk. This also applies to early retirement. Tip: check whether a 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 loan, 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. They are updated daily and published in the mortgage rate overview.
The next Mortgage Barometer will come out in July 2024.
This article was first published on 05.10.2013
