Swiss Hypo-Market: a sharp decline in fixed mortgage rates

Swiss mortgage interest rates have declined since mid-October. It's good news for anyone who needs to renew their mortgage or consider buying a house.

Benchmarking Moneyland and Comparis show that ten-year mortgages are just as favorable as a year ago. Fixed-rate mortgages with shorter maturities have even reached new levels.

According to Moneyland, the ten-year fixed rate mortgage interest rate fell from 1.7 to 1.45 percent in three months. Comparis's fourth quarter interest rates in the third quarter are 1.46 percent and 1.62 percent.

Comparis: "Customers with excellent credit ratings can close a 10-year fixed rate mortgage at 0.99%." This value was last reached two years ago.

In mid-October, Moneyland's five-year fixed mortgages have calculated a decrease of 1.19 percent to 1.04 percent. In the third quarter, Comparis reached 1.13 percent in the third quarter, down 1.04 percent in the fourth quarter.

The five-year fixed rate mortgages have thus reached the lowest value since 2017, according to both benchmarking services. "It has never been so cheap to accept mortgage loans with a shorter term," says Benjamin Manz, manager of Moneyland. "For the most expensive service providers, five-year mortgages still cost 1.2 percent, the cheapest only 0.69 percent a year."

According to Moneyland, online mortgages are usually cheaper than mortgages from traditional offline providers. For a long time, Moneyland offers the cheapest insurance offers.

Comparis is growing demand for short-term maturities. Between one and three years, the share of mortgages has increased significantly from 3.6 to 4.8 percent. However, the most popular were about 78% fixed rate mortgages with long maturities.

In terms of future interest rates, both benchmark services provide attractive rates. Despite political and economic failures, interest rates are likely to be lower, says Comparis.

Moneyland sees a slight increase in interest rates. However, it cannot be ruled out that the new historical figures will also be reached in the case of Swiss fixed income mortgages with a longer maturity in 2019, according to the announcement. (Uro / SDA)