The reference mortgage rate remains stable (cross-border guide)

Context

In brief

• The reference mortgage rate in Switzerland remains at 1.25%.
• The value is unchanged as of September 2, 2025.
• The Federal Office for Housing (FOH) confirms the rate.
• Most tenants have not yet obtained a rent reduction.

Key Facts

• What: Reference mortgage rate
• When: From September 2, 2025
• Where: Switzerland
• Who: Federal Office for Housing (FOH)
• Amount: 1.25%

The reference mortgage rate in Switzerland remains at 1.25%. This was announced on Tuesday by the Federal Office for Housing (FOH), pointing out that the value on which rents are based in Switzerland has remained unchanged since 2 September 2025, i.e. for one year. As in the previous quarter, the rate stands at 1.31%. However, since it is published in quarter percentages, the mortgage rate continues to be 1.25% and will remain at this level until the average rate falls below 1.13% or exceeds 1.37%. If the rent is still based on a rate of 1.5% or higher, the FOAB note reads, the right to a rent reduction remains in principle.

Implications for tenants

Despite the fact that the reference mortgage rate fell twice in 2025, the majority of tenants have not yet received a rent reduction. This is according to the Swiss Tenants' Association (ASI), which provides an online calculator to assert their rights. Today, the rate used to calculate rents has remained stable at 1.25%, the ASI recalls in a statement. Good news for tenants? Only partially, because the adjustment mechanism often works one-way: landlords increase their rent when the rate rises, but hardly anyone reduces it when it falls.

Operational details

Practical analysis

The invariability of the reference mortgage rate has significant implications for the rental market in Switzerland. The FOAB has pointed out that the rate will continue to be 1.25% until the average rate falls below 1.13% or exceeds 1.37%. This means that, for the time being, there will be no significant changes in rents based on this rate.

Right to rent reduction

If the rent is still based on a rate of 1.5% or higher, tenants have the right to demand a rent reduction. However, the ASI has highlighted that most tenants have not yet obtained a rent reduction, despite the fact that the reference mortgage rate fell twice in 2025. This underlines the importance for tenants to be informed about their rights and to use tools such as the ASI's online calculator to assert their claims.

One-way adjustment mechanism

The rent adjustment mechanism often works one-way: landlords increase their rent when the rate rises, but hardly anyone reduces it when it falls. This means that, despite the fact that the reference mortgage rate has remained stable at 1.25%, tenants may not see a reduction in their rents. The ASI pointed out that, in principle, the right to a rent reduction remains if the rent is based on a rate higher than 1.5%.

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

Concrete action

For tenants who are in a situation where rent is based on a rate of more than 1.5%, it is important to take steps to enforce their rights. The ASI provides an online calculator that can help tenants determine if they are eligible for a rent reduction. It is crucial for tenants to be informed about their rights and use tools like this to obtain a rent reduction if they are eligible.

Step-by-step procedure

1. Check the reference rate: Check if your rent is based on a rate higher than 1.5%. 2. Using the online calculator: Access the ASI online calculator to determine if you are eligible for a rent reduction. 3. Request the reduction: If the calculator confirms that you are eligible for a reduction, contact your landlord to request a rent reduction. 4. Documentation: Keep all communications and documents related to your request for rent reduction.

Useful tools

ASI offers an online calculator that can help tenants determine if they are eligible for a rent reduction. This tool is available for free and can be used by any tenant who wants to assert their rights.

Final CTA

For more information and to use the ASI's online calculator, visit the website of the Swiss Tenants' Association. This tool can be a valuable ally for tenants who want to obtain a rent reduction and assert their rights.

Source: rsi.ch