What does the fall in the mortgage rate mean for tenants?

The fall in the reference mortgage rate, which is used to calculate rents, is expected to lead to a reduction in rent. However, only a minority of tenants have been able to benefit from this reduction so far.

How can I check if I am entitled to a rent reduction?

You can use the rent calculator available on the www.asi-infoalloggio.ch website to check if you are eligible for a reduction and quantify the amount.

What should I do if my landlord doesn't reduce my rent?

If your landlord does not reduce your rent, you can contact the regional sections of ASI for further clarification and assistance.

Tenants' association: "it is necessary to ask for a reduction in rent" (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 1 September 2026

View of Lugano city with residential buildings

The benchmark mortgage rate fell twice in 2025, but most tenants did not get a rent reduction.

Context

In brief

The benchmark mortgage rate fell twice in 2025.
Most tenants did not get a rent reduction.
The Swiss Tenants' Association (ASI) calls for a reduction.

Key Facts

What: Rent reduction due to the drop in mortgage rate.
When: March and September 2025.
Where: Switzerland.
Who: Swiss Tenants' Association (ASI).
Amount: Reduction of about 3% for each variation of a quarter of a percentage point.

The benchmark mortgage rate, which is used to calculate rents, fell twice in 2025, but most tenants have not yet achieved a rent reduction. The Swiss Tenants' Association (ASI) reported that despite the rate remaining stable at 1.25%, landlords increase their rent when the rate rises, but hardly anyone reduces it when it falls.

The ASI has made an online calculator available to assert your rights. The reference rate is recalculated every quarter on the average of the mortgage rates charged by the banks. In 2023, the rate had risen from 1.25% to 1.75%, leading to price increases for many households. Then, in March 2025, it fell to 1.5% and finally to 1.25% last September.

Any change of a quarter of a percentage point in the interest rate generally entitles you to a rent reduction of around 3%. However, only a minority of tenants have been able to benefit from the discount so far. According to data from Zurich Kantonalbank (ZKB), only 12% of tenants had formally requested the second reduction in April this year.

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Operational details

Practical implications

The current situation highlights a disparity in the rent adjustment mechanism in Switzerland. While landlords are quick to raise rents when mortgage rates rise, they are less prompt to reduce them when rates fall. This places a greater financial burden on tenants, who see their living costs rise without a corresponding downward adjustment.

The ASI emphasizes the importance of greater transparency and proactivity on the part of landlords. Landlords should be incentivized to pass on mortgage rate reductions to tenants in a timely manner, avoiding offsetting these reductions with flat-rate increases in ancillary costs. This approach would not only help tenants save money but also help maintain a balance in the rental market.

For tenants, it is crucial to know their rights and use the tools available to enforce them. The ASI rent calculator is a valuable tool that allows you to quickly check if you are entitled to a rent reduction and quantify the amount. In addition, the ASI offers a section with questions and answers and invites tenants to contact the regional sections for further clarification.

Comparison with the previous situation

Before the fall in mortgage rates in 2025, many tenants had seen their rents rise due to the increase in the reference rate. This has led to an increase in the cost of living for many Swiss households. With the fall in interest rates, a reduction in rents was expected, but so far only a minority of tenants have been able to benefit from this reduction.

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Key points

Actions to take

If you are a tenant and want to check if you are entitled to a rent reduction, you can use the rent calculator available on the www.asi-infoalloggio.ch website. This tool allows you to quickly check if you are entitled to a discount and quantify the amount.

In addition, the ASI offers a section with questions and answers and invites tenants to contact the regional sections for further clarification. The recommendation is clear: do not wait for the landlord to come forward, but check your contract immediately and possibly actively ask for a rent reduction.

Step-by-step procedure

1. Check your contract: Check your rental agreement to see if you're eligible for a rent reduction. 2. Use the rent calculator: Go to the www.asi-infoalloggio.ch website and use the calculator to check if you are eligible for a rebate and to quantify the amount. 3. Contact the ASI: If you have any doubts or need further clarification, contact the regional sections of the ASI for assistance. 4. Request the reduction: If you are eligible for a rent reduction, contact your landlord and actively request a rent reduction.

Useful tools

Rent calculator: Calcolatore dell'affitto
Q&A section: Questions & Answers
Regional contacts: ASI regional sections

CTA

To check if you are entitled to a rent reduction, use the rent calculator available on the www.asi-infoalloggio.ch website.

Source: swissinfo.ch

Frequently Asked Questions

What does the fall in the mortgage rate mean for tenants?: The fall in the reference mortgage rate, which is used to calculate rents, is expected to lead to a reduction in rent. However, only a minority of tenants have been able to benefit from this reduction so far.
How can I check if I am entitled to a rent reduction?: You can use the rent calculator available on the www.asi-infoalloggio.ch website to check if you are eligible for a reduction and quantify the amount.
What should I do if my landlord doesn't reduce my rent?: If your landlord does not reduce your rent, you can contact the regional sections of ASI for further clarification and assistance.