Mortgage Radar – January 2026

Long-term interest rates are edging up slightly

In its December monetary policy assessment, the Swiss National Bank (SNB) once again kept its policy rate at 0.00%. Although inflation has fallen more than expected in recent months and recently dropped to zero, the SNB does not currently see any reason to return to negative interest rates. A clear shift to weaker economic indicators and a heightened risk of deflation would be required for such a move, which at present appears unlikely. In the short term, the policy rate is therefore expected to remain stable at 0.00%. However, long-term interest rates are generally moving in line with German yields and are likely to remain volatile as a result.

Mortgage rates and home financing

Interest rates for fixed-rate mortgages have increased slightly compared to the previous month. Currently, ten-year mortgages can be obtained at rates ranging from 1.60% to 2.00%, depending on the provider. SARON-based mortgages remain the most cost-effective option, with rates around 0.90% to 1.20%, while fixed-rate mortgages with terms of two to five years are currently available at rates between 1.20% and 1.45%.

Even though interest rates for fixed-rate mortgages fluctuate, they currently remain at attractive levels. For many households, a staggered financing approach may initially appear to offer sensible protection. However, in practice, this often results in the bank having greater negotiating power when it comes to refinancing the shorter-term portion, which can ultimately lead to higher interest rates. A better option is to structure the financing fairly over the entire term, ensuring sufficient flexibility for future negotiations.

The mortgage market is continuing to grow

The mortgage market is picking up again. After two years of restrictive lending practices, outstanding loan volumes are once more growing at a stronger pace, reaching 3.3% year-over-year – above the ten-year average of 3.0%. At the same time, the number of available offers is increasing, which is improving the negotiating position for borrowers when en-tering new agreements or refinancing existing loans.

Read our latest Mortgage Radar to find out what strategic considerations are decisive at the moment.

Downloads: DE | EN

Rafael Szucs, Head Key Clients & Corporates

Burak Er, Head Research & Advisory Solutions