Rents Mortgage reference interest rate remains at 1.25 percent
No changes for tenants in Switzerland. The mortgage reference rate relevant to rental law remains at 1.25 percent. This was announced by the Federal Housing Office (BWO) on Monday.
01.12.2025, 08:02
01.12.2025, 08:16
SDA
Specifically, the average interest rate relevant for the reference interest rate fell by just 4 basis points to 1.33%. The interest rate is commercially rounded and adjusted by 25 basis points if it exceeds or falls below the limit. Specifically, it remains at the current level until the average interest rate falls below 1.13% or rises above 1.37%.
In September, the reference interest rate fell from 1.50 percent to its current level. Prior to that, it had been lowered to 1.50 percent in March 2025, following two increases in the middle and end of 2023. To determine the reference interest rate, the BWO relies on the quarterly average interest rate of Swiss banks' domestic mortgage loans.
As it has not changed compared to the previous quarter, there has been no new claim for a reduction or increase since the last announcement, according to the press release.
