The decoupling of the key interest rate and mortgage rates is now measurable. On September 24, 2026, the Swiss National Bank left its key interest rate at 0 percent. At the same time, the yield on 10-year Swiss government bonds was back at around 0.45 percent in early November 2026. It is precisely these longer maturities that have a much greater impact on the calculation of fixed-rate mortgages than the short-term SNB rate.
Anyone who needs to renew an existing mortgage will therefore encounter a significantly different pricing landscape than during the period of low interest rates. In its Mortgage Barometer for the third quarter of 2026, Comparis reported a marked increase in fixed-rate mortgages despite the key interest rate remaining unchanged. Benchmark rates for 10-year terms were back above 2 percent—the highest they’ve been since March 2025.
Capital markets are pushing offers higher
For homeowners, this means that the outlook for bond markets matters more than the hope for an unchanged low key interest rate. When long-term yields rise, fixed-rate mortgages generally become more expensive as well. This is consistent with the SNB’s assessment that published interest rates for fixed-rate mortgages have tracked capital market rates in recent quarters.
The rates mentioned in the initial scenario—1.83 percent for five years and 2.10 percent for ten years—are thus close to the current market conditions. As of early November 2026, Comparis reported a benchmark rate of 1.85 percent for five-year fixed-rate mortgages and 2.03 percent for ten-year terms. While such benchmark rates are negotiable, they clearly indicate the general trend.
Five-year terms currently offer more flexibility
Those who have to choose between five and ten years are primarily buying planning security with the longer commitment. However, the premium is currently noticeable. For a mortgage of 375,000 Swiss francs, a 0.27 percentage point difference in interest rates translates to approximately 1,013 Swiss francs in additional annual costs for the 10-year fixed-rate mortgage compared to the 5-year term. In an environment of stable to slightly rising long-term interest rates, this tends to favor the shorter term, provided the household budget allows for some flexibility regarding interest rates.
This option is not entirely risk-free. When the five-year term expires, interest rates may have risen again. Conversely, the ten-year fixed-rate mortgage will remain expensive if capital market rates fall again later. Added to this is the lack of flexibility. Early termination of a long-term fixed-rate mortgage can incur high costs. This is precisely why, when it comes to renewals, the longest term doesn’t automatically win out—instead, the more appropriate balance between budget protection and flexibility is what matters most today.
