Mortgage rates: good news for borrowers

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

Key points from the SNB analysis

SNB policy rate and SARON

• The policy rate stays at 0%, an unchanged stance since the previous review.
• The remuneration of banks' sight deposits remains aligned with this rate, supporting the continuation of accommodative monetary conditions.
• The inflation forecast implies the SARON rate staying 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 risen slightly of late because of higher prices for imported goods and in the tourism sector.
• For the coming years, the SNB's monetary policy aims to keep inflation under control and to support economic activity.

Economic context

• Global growth is slowing, mainly because of trade tensions and political uncertainty.
• In Switzerland, GDP growth will be modest (between 1% and 1.5% in 2025, less in 2026), and unemployment is expected to rise.
• The outlook remains uncertain, notably because of US trade policy and international conditions.

Conclusions for the mortgage market

• Variable mortgage rates (SARON-indexed) should stay very low, close to 0%, at least until 2028, which is excellent news for borrowers looking to avoid rate volatility.
• Fixed rates (long rates) should also remain stable over the forecast period, since inflation remains subdued and the SNB does not expect upward pressure on long-term rates.
• This favourable backdrop should support the property market and give Swiss households visibility and protection against a sharp rise in financing costs, at least for the next three years.

Summary for financing strategy

• Favour SARON-indexed financing to take lasting advantage of ultra-favourable conditions until 2028.
• Cautious borrowers may also consider keeping or locking in medium-term fixed rates, as the risk of a rise is judged to be 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