The Swiss National Bank left its key interest rate unchanged at 0 percent on June 18, 2026 – a level that has been in place since June 2025. This has had a noticeable impact on the real estate market: mortgages are as cheap as they have been for years, and this period of low interest rates is significantly boosting demand for home ownership.
How affordable financing really is right now
SARON mortgages currently range between 0.64 and 1.2 percent effective interest rate, depending on the bank and creditworthiness. Fixed-rate mortgages show a similar picture: five-year terms are available from around 1.2 percent, and ten-year terms from about 1.5 percent. To put this in perspective: for a mortgage of 750,000 Swiss francs, the difference between the cheapest and most expensive offer on the market can quickly amount to several thousand francs per year – a sum that adds up considerably over the entire term.
Why interest rates remain so low
The Swiss National Bank (SNB) justifies its policy with the inflation trend: It remains within the range of price stability, even though geopolitical tensions – particularly in the Middle East – have recently led to slightly rising energy prices and thus a moderate increase in inflation. As long as this increase remains limited, the central bank sees no reason to raise interest rates. Several banks currently expect the first upward adjustment no earlier than 2027 – and even then, it is likely to be moderate.
The result: Increased demand, continued limited supply
Low interest rates directly change how many buyers can afford a property because the monthly payments decrease. This is precisely what is noticeable in the market: Demand for residential property remains high, while the supply of properties is scarce in many places. This combination explains why real estate prices in Switzerland have been rising almost continuously for over 20 years – periods of low interest rates like the current one have historically further reinforced this trend.
What this means for buyers and sellers
For buyers, the current environment presents a rare opportunity to secure favorable long-term conditions – particularly through a fixed-rate mortgage – before higher interest rates are expected again from 2027 onwards. For owners considering a sale, the situation shifts in the opposite direction: a larger number of eligible buyers are facing a limited supply, which directly impacts achievable prices. Anyone who owns a property and is thinking about selling should therefore be able to assess now how the current interest rate environment specifically affects the value of their property – and whether now is a good time to sell.
This assessment depends heavily on the location, condition, and type of use of the property and cannot be answered generally. WENET AG regularly analyzes the current market situation for property owners and shows what a sale could realistically yield in the current interest rate environment. Anyone wishing to clarify this question for their own property is in good hands with the WENET team.
Note: This article is for general information purposes only. Interest rate information is based on current market data and is subject to change without notice. For a binding assessment of your personal financing situation, we recommend consulting a bank or an independent mortgage advisor.
Conclusion
The Swiss National Bank (SNB) has kept its key interest rate at 0 percent since June 2025, and mortgages remain correspondingly cheap – SARON financing from around 0.64 percent, fixed-rate mortgages from about 1.2 percent depending on the term. This period of low interest rates increases the purchasing power of many prospective buyers and coincides with a continued tight supply, which further drives up demand and thus prices in the real estate market. For buyers, it is therefore worthwhile to secure a long-term interest rate lock-in now before the first increases are expected from 2027 onwards, while those looking to sell can currently benefit from the high demand – provided they know the realistic market value of their property in this environment.
