Record-breaking Swiss mortgage market: exceeded CHF 1.3 trillion in 2025 (cross-border guide)

Context

In a nutshell

• Record growth : +3.1% in 2025, highest since 2022
• Total volume: Exceeded CHF 1300 billion
• Engines: Low interest rates and rising real estate prices
• Bank profits: Margins falling despite volumes

Key facts

• What: Swiss Mortgage Market Growth 2025
• When: Data referring to 2025, study published in early 2026
• Where: National Switzerland
• Who: Studio Helvetia/Moneypark, cantonal banks, Raiffeisen, UBS
• Amount: +39 billion francs (+3.1%), net interest margin 1.16%

In 2025, the Swiss mortgage market surpassed the symbolic threshold of CHF 1.3 trillion for the first time, registering a growth of 3.1% compared to the previous year. This is the strongest expansion since 2022, above the 10-year average of 3.0%. The sector was driven by low interest rates and soaring real estate prices, but this growth did not translate into higher profits for lenders. According to the joint study by Helvetia and Moneypark, net interest margin fell to 1.16%, down 10 basis points year-on-year.

Who Gains Market Share

Cantonal and Raiffeisen banks captured three-quarters of the net growth (CHF 29 billion). Raiffeisen scored +4.6%, while cantonal banks scored +3.9%, both above the market average. This performance allowed Raiffeisen to narrow the gap with industry leader UBS to just 52

Operational details

Because profits don't grow with volumes

Despite record volumes, the profitability of Swiss banks is under pressure. Net interest margin plummeted by 24% compared to 2023, the post-rate peak year. Fierce competition between financial institutions squeezes margins, while falling refinancing costs have not been enough to reverse the trend. Analysts expect this pressure to continue into 2026.

Outlook for 2026

Despite the difficulties on the margins, the future looks solid. The study predicts similar growth in 2026, supported by rising real estate transactions and still-rising house prices. Switzerland thus confirms the resilience of its real estate market, despite global uncertainties.

Implications for borrowers and investors

For borrowers, the environment of persistent low rates offers advantageous funding opportunities, but competition between banks could translate into more favourable conditions. Real estate investors need to consider, however, that rental returns could be squeezed by rising financing costs for banks.

Concrete examples

In 2025, the Swiss mortgage market surpassed CHF 1.3 trillion, an all-time record. This increase was particularly evident in regions such as the Canton of Ticino and the city of Zurich, where house prices recorded significant growth.

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Key points

What to do concretely if you are looking for a mortgage

The strong competition between financial institutions, especially between Raiffeisen and cantonal banks, means that rates and conditions can vary significantly. Using independent comparators is key to finding the best deals. 📊

Concrete example

According to recent data, in the Canton of Ticino, the average interest rates for mortgages ranged between 1.5% and 2.5% for the first years, with a decrease of 0.5% for the following years. 📊

Check the fixed duration

With uncertainty about future rates, carefully assessing the duration of the fixed rate is crucial. Banks could offer more advantageous terms for longer durations. 💡

Consider pension funds

As a new second player in the market, pension funds could offer competitive alternatives to traditional banks. For example, the Ticino Pension Fund recently launched a new line of mortgage products with competitive rates and advantageous conditions. 📊

Consult an expert

Given the complexity of the market, a mortgage advisor can help you navigate the options available. A consultant can provide a customized assessment based on the customer's specific needs and applicable regulations. 💡

Practical tool

To calculate borrowing capacity and compare mortgage options, use our calcolatore di ipoteche.

Operational Checklists

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Source: swissinfo.ch