Mortgage Radar – February 2026

We expect the Swiss National Bank (SNB) to keep its policy rate unchanged at 0.00% at its upcoming meeting in March. The recently very low domestic inflation and ongoing geopolitical uncertainties are unlikely to provide sufficient reason for further monetary easing from the SNB’s perspective at this time.

Long-term interest rates still volatile for now

In the short term, the policy rate is therefore expected to remain stable. Following a period of heightened volatility, long-term interest rates are likely to return to their broader downward trend.

Mortgage rates and home financing

Interest rates for fixed-rate mortgages have remained largely unchanged compared to the previous month. At present, ten-year mortgages can be arranged at rates between 1.60% and 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 currently range from 1.20% to 1.45%.

Banks and comparison platforms publish guideline rates, also known as “indicative rates” for mortgages, and provide affordability calculators. These figures offer useful guidance for owner-occupied residential properties. The situation is quite different for financing rental properties: stricter requirements apply, credit margins are higher, and the bank’s internal valuation can deviate significantly from the purchase price. To avoid unfavorable credit decisions, working with a broker who understands the lending criteria of individual banks can be crucial for successfully financing an investment property.

New debt interest deduction rules for privately owned rental properties

With the expected abolition of the imputed rental value, likely effective from the 2028 tax year, a new rule regarding the deductibility of debt interest will also be introduced. This measure will significantly limit the deductibility of mortgage interest for investment properties held as private assets.

In our latest Mortgage Radar, we touch upon the strategic considerations that are decisive in this context.

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Rafael Szucs, Head of Key Clients & Corporates

Burak Er, Head of Research & Advisory Solutions