When will the next increase in the benchmark rate come?

According to UBS, the rate could rise to 1.5% towards the end of 2027. ZKB estimates 2028 as the most likely horizon. However, if the Swiss National Bank decides to raise rates more quickly (due to inflation or geopolitical shocks), the increase could reach as early as mid-2027.

How much will the rent increase if the rate rises to 1.5%?

If the rate goes from 1.25% to 1.5% (increase of 0.25 points), the owner can increase the fee by 3.00%. Out of a rent of CHF 1,500, that would mean CHF 45 more per month.

Can I object to a rent increase?

Yes, you can dispute an increase you feel is unjustified within 30 days with your cantonal conciliation authority. Verify that it is consistent with the reported variation of the UFAB.

How do I know what the new rate will be on September 1?

UFAB announces the rate every first Tuesday of the quarter (September, December, March, June). The announcement is published on the office's website (ufab.admin.ch) and disseminated by the national media.

What can accelerate the rise in the benchmark rate?

According to experts, three factors could accelerate the increase: geopolitical conflicts that increase energy prices, higher than expected inflation, and a robust economic recovery (also linked to artificial intelligence) that would push the SNB to raise rates earlier than expected.

Reference rate: stop at minimum, but increase in sight (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 27 August 2026

View of Lugano with residential buildings and lake in background, symbol of Swiss housing market.

The FOBA announces on 1 September that the rate remains at 1.25%. Short relief: UBS forecasts rise to 1.5% end 2027, ZKB 2028. What to expect.

Context

In a nutshell

Reference rate set at 1.25% on September 1, 2026
Rent increase expected between the end of 2027 and 2028 according to experts
If RL rises 0.25 pp, rents increase by 3.00%
BNS must first raise the driving rate by 0.0%

Key facts

What: Swiss mortgage reference rate (indicator that regulates rentals)
When: Official communication 1 September 2026
Where: All of Switzerland (all cantons)
Who: FOHA (Federal Housing Office), SNB (Swiss National Bank)
Current level: 1.25% since September 2025
Impact on fees: Increase of 0.25 pp allows rent increase of 3.00%
Next announcement: First Tuesday of the quarter (March, June, September, December)

On Tuesday, September 1, 2026, the Federal Office of Housing (FOHA) will communicate the new mortgage reference rate. According to specialists interviewed by the ATS agency, the rate will remain unchanged at 1.25%, the historical minimum level reached in September 2025. Good news for Swiss tenants: at least for the next three months they will not see their rental fees increase.

But the breath of relief will be short. Experts from Raiffeisen, UBS and cantonal bank ZKB agree on one certainty: the rise will come, probably by 2027 or 2028, causing a significant increase in rents across Switzerland. The timing depends on the decisions of the Swiss National Bank (SNB), which will eventually have to raise its

Operational details

What does the rise actually mean for renters?

The reference rate regulates the renewal of leases throughout Switzerland. When it goes up, landlords have the right to increase the rent according to an automatic federal formula. For every 0.25 percentage point rate hike, landlords can raise their rent by 3.00%. Conversely, if the rate fell, tenants would have the option to request a 2.91% reduction.

Specifically, if the rate were to increase from 1.25% to 1.50% (the average scenario envisaged by UBS by the end of 2027), each owner could increase the fees by 3.00%. For a tenant paying CHF 1,200 per month, that would mean CHF 36 more. For those paying 2,000 CHF, the increase would rise to 60 CHF per month. This is not an insignificant figure, especially in cantons with high housing costs such as Geneva, Zurich and Bern, where rents are already among the most expensive in Switzerland.

When to expect the increase according to the banks?

Institution	Rate forecast	Expected date	Rate increase
UBS	1.5%	End 2027	3.00%
ZKB	Significant Rise	2028	~3.00%
Baseline Scenario (unchanged)	1.25%	September 2026	None

UBS and ZKB estimate the rise within one to two years, but warn that sudden economic shocks could accelerate the times. If geopolitical conflicts emerge that send energy prices skyrocketing, or if inflation

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

How to track the benchmark rate?

The FUFAB communicates the new reference rate every three months, on the first Tuesday of the months of March, June, September and December. The next communication is set for Tuesday, September 1, 2026. The official data is published on the website of the Federal Office and disseminated by the national media.

As a tenant, you can check the FOBA website on the day of the listing to stay up to date. If the landlord notifies you of a rent increase, check that it is consistent with the change in the reported reference rate. Consulting the tenants' association in your canton is a good practice to understand if the proposed amount is legitimate.

As a landlord, you can use bank forecasts to plan for any fee increases based on the expected rate change, while always maintaining transparency to tenants.

Countering an illegitimate increase

If you receive a letter of increase from the rent and doubt that it is correct, you have the right to object. According to federal law, the dispute must be submitted within 30 days to the conciliation authority of your canton. Check that the increase is proportionate to the change in the reference rate and check the calculations: you can use online calculation tools to check if the amount is consistent.

Opportunities for tenants and landlords now

As long as the rate remains at 1.25%, rents won't go up. If you are looking for a new

Source: swissinfo.ch

Frequently Asked Questions

When will the next increase in the benchmark rate come?: According to UBS, the rate could rise to 1.5% towards the end of 2027. ZKB estimates 2028 as the most likely horizon. However, if the Swiss National Bank decides to raise rates more quickly (due to inflation or geopolitical shocks), the increase could reach as early as mid-2027.
How much will the rent increase if the rate rises to 1.5%?: If the rate goes from 1.25% to 1.5% (increase of 0.25 points), the owner can increase the fee by 3.00%. Out of a rent of CHF 1,500, that would mean CHF 45 more per month.
Can I object to a rent increase?: Yes, you can dispute an increase you feel is unjustified within 30 days with your cantonal conciliation authority. Verify that it is consistent with the reported variation of the UFAB.
How do I know what the new rate will be on September 1?: UFAB announces the rate every first Tuesday of the quarter (September, December, March, June). The announcement is published on the office's website (ufab.admin.ch) and disseminated by the national media.
What can accelerate the rise in the benchmark rate?: According to experts, three factors could accelerate the increase: geopolitical conflicts that increase energy prices, higher than expected inflation, and a robust economic recovery (also linked to artificial intelligence) that would push the SNB to raise rates earlier than expected.