Swiss Reference Interest Rate 2026: What Landlords and Tenants Need to Know

The mortgage reference rate in Switzerland has been 1.25 percent since September 2025 and remained unchanged in June 2026. For existing leases, it is an important calculation parameter – but neither an automatic rental rate formula nor identical to the SNB key interest rate. Anyone assessing adjustments must read the starting point, cost development, inflation and contract together.

Reference interest rate Switzerland 2026: What the key figure says

The Federal Office for Housing publishes the reference interest rate quarterly. It is based on the volume-weighted average interest rate of banks’ domestic mortgage claims. On 31 March 2026, this average was 1.31 percent; the resulting rounded reference rate remained at 1.25 per cent. This rounding explains why the published sentence does not change with every small market movement.

Since 2008, the reference interest rate has applied throughout Switzerland to rental rate adjustments due to changes in mortgage rates. However, the decisive factor is not only the current value, but also which reference interest rate is the basis of the existing rental rate. It is often found in the lease agreement or in the last formal rental rate notice.

Why SNB policy rate and reference rate are not the same

The SNB key interest rate influences short-term money market conditions and thus, among other things, SARON financing. The reference interest rate reacts more slowly because it reflects the entire mortgage portfolio. This includes many longer-running fixed-rate mortgages, whose interest rates only change on renewal. An SNB decision therefore does not automatically lead to a new reference interest rate in the next quarter.

For owners, this means managing operational financing and the rental basis separately. A cheaper own mortgage does not automatically equate to an immediate rental rate reduction; Conversely, more expensive individual financing does not automatically justify an increase. For the financing side, the comparison with our contribution is worthwhile SARON or Fixed Mortgage 2026.

How rental rate adjustments are calculated in principle

According to the system of the Federal Office for Housing, an increase in the reference interest rate by 0.25 percentage points generally entitles a rental rate increase of 3 percent. A reduction of 0.25 percentage points basically leads to a reduction claim of 2.91 percent. These are baselines. In particular, price increases and general cost increases may be offset; Contractual specificities or adjustments already taken into account also play a role.

A calculation must be based on the correct starting rental rate and the correct reference basis. Formal errors, wrong dates or incomplete justifications can affect an adjustment. In case of uncertainty, a rental legal examination makes sense, because a real estate-specific market assessment does not replace legal advice.

What Landlords Should Check Now

Professional landlords maintain a comprehensible history for each tenancy: start of the contract, underlying reference interest rate, previous adjustments, price increases, cost increases and value-adding investments. This documentation prevents blanket decisions and facilitates transparent communication. It is also valuable when selling or financing the object.

In addition, the economic perspective remains important. Gross rent does not equal net income. Mayntenance, administration, insurance, provisions, vacancy and capital costs determine the actual return. Anyone who only looks at the next rental rate adjustment can overlook the long-term investment need. For older buildings, the rental strategy and the renovation plan should therefore be merged.

What tenants should consider when adjusting

Tenants should first check what reference interest rate is included in the current rental rate and whether previous reductions or increases have been passed on. Equally important are the date, justification and cantonally prescribed form. Not every computational deviation leads to the same result, because inflation, cost development and individual contract history can be offset.

A factual examination is usually more helpful than the comparison with neighbors or current advertisements. Newly advertised market rentals and existing contract rentals follow different logics. Anyone who demands a reduction or denies an increase should observe deadlines and, if necessary, consult a conciliation body or qualified legal advice.

Reference interest rate in the business plan of a yield property

For investors, the reference rate belongs in the scenario planning, but not as an isolated return driver. At least one basic scenario, a cost stress and a financing scenario are useful. Rental interest development, fluctuation, vacancy, maintenance and follow-up financing are modeled separately. This makes it visible whether the property remains sustainable even without optimistic rent increases.

A robust audit answers the following questions:

• What reference basis applies in the individual lease contracts?
• What adjustments have already been made or are open?
• What are sustainable net returns and provisions?
• When do mortgages expire and how sensitive is cash flow?
• Which renovations affect costs, usage and rentability?

The combination of rental rights, financing and operations makes a seemingly simple percentage a strategic size. This is precisely why a portfolio should not be managed solely by gross return or current market interest rate.

Form, deadlines and communication are part of the strategy

A computationally plausible rental rate change can fail at implementation if formal requirements or notice periods are not observed. Increases must be notified on the cantonally approved form and justified in a comprehensible manner. There are also procedures and deadlines for reduction requests. Because details depend on the contract and individual case, landlords should not confuse standard processes with a flat-rate template.

Good communication reduces conflicts. A transparent listing shows starting reference, current rate, costs considered and resulting change. For larger portfolios, a four-eye check is worthwhile before messages are sent. For tenants, on the other hand, a written, factual request with a contract reference makes more sense than a general requirement. Where no agreement is reached, the competent conciliation authority offers a procedure provided for by law.

For portfolio planning, a calendar with the quarterly publication dates of the Federal Office for Housing and the contractual adjustment windows is also recommended. In this way, possible changes can be classified early in budget and communication. Such a preview does not replace individual examination, but prevents hectic reactions immediately after the publication of a new sentence.

Frequent questions

What is the reference interest rate in Switzerland in 2026?

Since September 2, 2025, the mortgage reference interest rate is 1.25 percent. The Federal Office for Housing confirmed this status on 2 June 2026.

Does a reduction automatically lead to lower rents?

Not automatically. Decisive are the reference basis of the current rental rate, earlier adjustments and possible counter-positions such as inflation and general cost increases.

Is the reference rate equal to the SNB reference rate?

No. The reference rate is based on the average interest rate of the total domestic mortgage portfolio and therefore responds to market and SNB interest rates with a time delay.

Further real estate insights

• Housing market Switzerland 2026: Why housing remains scarce
• Investment property Switzerland: Return, cash flow and risks correctly calculated