As expected, mortgage rates have risen slightly. (Image: Shutterstock/Mike Workman)
Mortgage interest rates in Switzerland increased slightly in the last quarter of 2022. According to the comparison service Comparis, the reference rates for 10-year mortgages increased by 0.1 percentage points to 3.02%. Saron mortgages have become much more expensive.
The data comes from an evaluation by HypoPlus, the mortgage specialist of the Comparis Group. HypoPlus compares the reference rates of around 50 banks. The reference rates for five-year fixed-rate mortgages increased by 0.26 percentage points to 2.79 per cent from the beginning of October to the end of December, and those for ten-year mortgages by 0.08 percentage points to 3.02 per cent .
With the SNB’s interest rate decision of 15 December 2022, the Saron rate rose by 0.5 percentage points to 1%. “Including the 0.96% Saron benchmark margin, this translates into an annualized interest charge of nearly 2.0% for Saron mortgages,” Comparis writes in a note.
In early 2022, mortgage rates rose sharply for the first time in years: from about 1 percent to 3.5 percent in October for a 10-year fixed-rate mortgage.
In its study, Comparis found that 62.6% of all homes are financed solely by a fixed-rate mortgage. Another 15 percent have a mixed form of fixed-rate mortgage and Saron. Only 11% rely completely on the Saron mortgage. Another 9 percent have already paid for their home in full.
According to the survey, almost a third are dissatisfied with their current mortgage and are thinking of changing models. 13.5 percent of respondents want to switch to a fixed-rate mortgage or at least increase the share of the total amount that the fixed-rate mortgage accounts for. Another 17.5% are considering switching to a Saron mortgage or increasing their Saron mortgage rate.
Fear of even higher interest rates
Market fluctuations in interest rates and general economic uncertainties mean that the Swiss fear more and more new increases. 26.3% of respondents say they want to reduce their mortgage debt. In contrast, only 6.3% of homeowners want to further increase their mortgage.
The Comparis study interviewed a total of 1047 people and compared the prices of 50 banks. Prices are indicative rates, which apply as a basis for negotiation. In fact, according to Comparis, interest rates are generally lower, depending on how well you trade.
On average, Mr. and Mrs. Swiss currently pay 2.4 percent for a 10-year fixed-rate mortgage, well below the standard rate of 3.02 percent.
