Mortgage rate: good news for borrowers

The Swiss National Bank (SNB) announces that it will maintain its policy rate at 0% and expects that the SARON rate will remain very low, close to 0, at least until 2028. Long-term rates are also expected to remain stable according to the analysis published today.

Key Points from the SNB Analysis 

SNB Policy Rate and SARON 

• The policy rate remains at 0%, unchanged since the previous assessment.

• The remuneration of banks' sight deposits remains aligned with this rate, encouraging the maintenance of loose monetary conditions.

• The inflation forecast implies that the SARON rate will remain very close to zero until 2028.

Inflation and Growth 

• Inflation remains very low, estimated at 0.2% for 2025, 0.5% for 2026, and 0.7% for 2027, still within the price stability range.

• Observed inflation has slightly increased recently due to rising prices of imported goods and the tourism sector.

• For the coming years, the SNB's monetary policy aims to keep inflation under control and support economic activity.

Economic Context 

• Global growth is slowing down, mainly due to trade tensions and political uncertainties.

• In Switzerland, GDP growth will be modest (between 1 and 1.5% in 2025, less in 2026), and unemployment is expected to rise. 

• Prospects remain uncertain, particularly due to U.S. trade policy and the international situation.

Conclusions for the Mortgage Market

• Variable mortgage rates (indexed to SARON) are expected to stay very low, close to 0%, at least until 2028, which is excellent news for borrowers wishing to avoid rate volatility.

• Fixed rates (long-term rates) are also expected to remain stable over the forecast period, as inflation remains slight and the SNB does not foresee upward pressure on long-term rates.

• This favorable context should support the real estate market and provide Swiss households with visibility and protection against a sharp rise in financing costs, at least for the next three years.

Summary for Financing Strategy 

• Prioritize SARON-indexed financing to sustainably benefit from ultra-favorable conditions until 2028.

• Prudent borrowers can also consider maintaining or securing fixed rates in the medium term, with the risk of an increase being deemed limited.

• The economic environment remains uncertain, but the SNB's monetary policy offers guarantees of stability for the Swiss mortgage rate sector.

Source: SNB Press Release of 25.09.2025