Fixed-rate mortgages overtake the former favourites

December 2023

Die Schweizer Hypothekenlandschaft erlebt einen bemerkenswerten Wandel. Nach einer Zeit, in der variable Saron-Hypotheken die Gunst der Kunden eroberten, sind nun Festhypotheken wieder im Aufschwung. Angesichts der jüngsten Entwicklungen bei den Hypothekenzinsen gewinnen Festhypotheken an Attraktivität und werden zu einer bevorzugten Option auf dem Markt.

In Switzerland, there was a veritable run on variable Saron mortgages after the interest rate turnaround. However, the former favourites no longer seem as attractive as before.

Interest rates for Swiss fixed-rate mortgages have been on a downward trajectory since mid-June 2023. According to the mortgage index of the Swiss online comparison service Moneyland, ten-year fixed-rate mortgages are currently quoted at 2.31 per cent – the lowest level since May 2022.

The downward trend intensified after the Swiss National Bank (SNB) surprisingly announced a pause in interest rates in September. As a result, fixed-rate mortgages are no longer more expensive than variable-rate Saron mortgages, which previously accounted for a large proportion of new business, for the first time since October last year.

Today, fixed-rate mortgages are significantly cheaper than Saron mortgages for all maturities. Two-year fixed-rate mortgages are currently 0.35 percentage points, five-year mortgages 0.42 percentage points and ten-year mortgages 0.30 percentage points cheaper than their variable-rate counterparts.

Experts agree that interest rates in Switzerland appear to have peaked. The majority of market observers assume that the SNB will leave key interest rates unchanged at the next meeting and in the first quarter of 2024 and could only announce interest rate cuts in mid-2024.

The property specialists at Moneypark also reported that over 90 per cent of mortgage providers surveyed in Switzerland expect the SNB to leave the key interest rate unchanged at 1.75 per cent at its next meeting. Over the next three months, interest rates are likely to remain stable for shorter terms of up to five years, while longer terms are expected to see more volatility and a trend towards lower interest rates.

More articles