Mortgage Radar – November 2025

Interest rates at the long end are falling further

In its September monetary policy assessment, the Swiss National Bank left the key interest rate unchanged at 0.00%. The economic backdrop remains characterized by geopolitical uncertainty, pending negotiations about lower US tariffs on Swiss goods, low inflation, and a still strong Swiss franc, which is at a multi-year high against the euro.

Yet the SNB sees no reason to return to negative interest rates. Consequently, the key interest rate is expected to remain stable at 0.00%, while rates at the long end should stay under pressure.

Mortgage rates and residential property financing

Fixed-rate mortgages have become slightly less expensive recently, particularly ten-year mortgages. Such mortgages can be taken out at interest rates of between 1.50% and 1.80% depending on the provider. SARON mortgages remain the most inexpensive option at interest rates of around 0.90% to 1.20%, while fixed-rate mortgages with two to five-year terms currently range between 1.15% and 1.40%.

The current level of interest rates remains highly attractive by historical standards, even if it no longer matches the lows seen during the pandemic. For many borrowers considering a new mortgage or refinancing, the question arises whether they should lock in today’s favorable terms for the long term. Existing mortgage holders can also lock in the interest rate for their future renewal as early as today using a so-called forward mortgage – often up to two years in advance. While this provides planning certainty, it also entails risks: Determining the margin is often intransparent and can vary significantly. Therefore, independent advice is recommended to obtain the best possible offer.

Abolition of imputed rental value: Renovate or wait?

With the adoption of the real estate ownership taxation reform, the taxation of imputed rental value will be abolished, as will the possibility to deduct maintenance costs and mortgage interest for tax purposes (see first illustration). The new regulation is expected to enter into force no earlier than the 2028 tax year, but property owners are already faced with important decisions. In the latest Mortgage Radar, you’ll learn which strategic considerations are now crucial.

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Rafael Szucs, Head of Key Clients & Corporates

Burak Er, Head of Research & Advisory Solutions