Floating interest rates similar to fixed-rate mortgages
The interest rates for Saron mortgages not necessarily cheaper than those for fixed-rate mortgages
Keystone / Steffen Schmidt
The interest rates for Saron mortgages in Switzerland are no longer always cheaper than those for fixed-rate mortgages. At the same time, the difference in interest rates between short-term and longer-term mortgages has increased again.
According to an analysis published on Wednesday by the online comparison service Moneyland.ch, the interest rate on Saron mortgages was on average 2.61% at the end of October. It is therefore at the same level as comparable six-year fixed-rate mortgages. Fixed-rate mortgages with a term of less than six years are slightly cheaper than Saron mortgages and longer-term mortgages are slightly more expensive.
This means that the interest rates for Saron mortgages have risen by more than 1.5% points within just over a year. In July 2022, before the Swiss National Bank raised the key interest rate back into positive territory, the average interest rate was just under one percent.
According to Moneyland, fixed-rate mortgages with a term of two or five years are currently quoted at 2.57%. For ten-year mortgages, the average interest rate is 2.71%. This means that longer-term mortgages have once again become more expensive than shorter-term mortgages. A month ago they cost almost the same.
It is said that a fall in interest rates on short- and medium-term fixed-rate mortgages is currently not expected. “If the market were to assume that we were facing a sustained reduction in interest rates, the short-term fixed-rate mortgages would not be at a similar level today, but would be significantly lower than the Saron mortgages,” said Moneyland analyst Felix Oeschger. According to analysts, major interest rate cuts on other mortgages are also unlikely in the next few months.
More
More
Price expectations for Swiss real estate are falling
This content was published on
Professional property investors predict a drop in Swiss real estate prices.
This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles. You can find them here.
If you want to know more about how we work, have a look here, and if you have feedback on this news story please write to english@swissinfo.ch.
External Content
Your subscription could not be saved. Please try again.
Almost finished… We need to confirm your email address. To complete the subscription process, please click the link in the email we just sent you.
Popular Stories
More
Life & Aging
Switzerland no longer wants to foot the bill for ‘suicide tourism’
As a Swiss Abroad, how do you feel about the emergence of more conservative family policies in some US states?
In recent years several US states have adopted more conservative policies on family issues, abortion and education. As a Swiss citizen living there, how do you view this development?
Switzerland to collect data from non-Schengen visitors
This content was published on
The data of travellers from non-Schengen countries will be automatically recorded at the borders of member countries, also Switzerland.
Swiss air traffic controller in red after year of breakdowns
This content was published on
Swiss air traffic controller Skyguide ended 2024, a year marked by repeated breakdowns, with a loss of almost CHF19 million.
Ex-FIFA boss Blatter declares innocence in appeal trial
This content was published on
Former FIFA boss Joseph 'Sepp' Blatter has opened his defence at a Swiss appeal trial which is hearing allegations of fraud.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
How Google is driving up rents in Zurich
This content was published on
Rents for flats in Zurich, Switzerland’s business capital, are reaching stratospheric levels – one reason for this is Google’s international campus.
Real estate experts warn Switzerland unprepared for population boom
This content was published on
The Swiss population in 2023 is expected to increase by much more than official statistics predicted, argue some real estate experts.
Zurich poses highest real estate bubble risk globally
This content was published on
The threat of real estate bubbles has diminished worldwide, leaving Zurich and Tokyo as the only global cities remaining in the risk zone.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.