Over the last few years mortgage interest rates have been exceptionally low in Switzerland. However, since mid-December 2021 they have risen and are at levels last seen in 2018.
According to recent data collected the newspaper Finanz und Wirtschaft, Swiss mortgage interest rates are 0.25 percentage points higher than a month earlier. 10-year guide rates at large banks such as Credit Suisse and Raiffeisen are now over 1.6%, according to the newspaper. Interest rates have also risen for shorter term loans too.
Banks have become more cautious due to rising inflation. Higher interest rates in capital markets are flowing through to mortgage rates.
Jan Schwalbe, chief editor at Finanz und Wirtschaft, expects some home owners may be getting nervous thinking about the period around 2008 when rates 10-year mortgage rates went close to 5%. However, Schwalbe does not expect to see 10-year rates at 5% or 4% or even 3% in Switzerland in the next few years. That would require huge jumps in key interest rates, which he does not expect.
According to Schwalbe, the cost of locking in mortgage costs for 10 years is still very low. And banks should be able trim 10-year rates to between 1.2% and 1.3% on a mortgage of CHF 1 million with a bit of prodding. Other lenders, such as insurance companies, often offer even lower rates.
Finanz und Wirtschaft article (in German)