The interest rate environment in Switzerland is becoming more uncomfortable for potential homeowners. Banks and insurance companies are increasingly passing the costs on to their customers. And prices could continue to rise.
Mortgage interest rates in Switzerland rose last year.
As the comparison service Moneyland writes in a statement on Wednesday, there have been increases of between 0.15 and 0.22 percentage points within a year, depending on the term .
The dream of owning a home is therefore becoming more expensive again for many.
The interest you have to pay on a mortgage has risen over the last year.
The dream home is unlikely to be as cheap for many in the medium to long term as it has been in the recent past.
The looming inflation is likely for ensure a further rise in interest rates.
In the past year, prices have risen by 0.15 to 0.22 percent (depending on the duration). And at the beginning of the year the mortgage wheel continues to turn. Within a few days, prices rose by a further 0.01 to 0.03 percentage points. This is shown by the new index from the comparison service Moneyland. The service compared the offers from a total of 140 providers.
Banks seem to expect higher interest rates
In the medium term, prices for potential homeowners could continue to rise. One reason for this is the looming inflation in Switzerland. In order to combat this, the national banks have no choice but to raise interest rates, which in turn would have an impact on the benchmark interest rates for mortgages. Moneyland analyst Felix Oeschger explains: “It is quite possible that we will never reach the historic low mortgage interest rate of August 2019.”
According to Moneyland, one indicator of future price increases are the differences between short-term and long-term mortgages, i.e. those with terms of a few versus those with up to 15 years. Here, the short-term are currently significantly cheaper, which is to be interpreted as an indication that the banks are expecting a rise in interest rates.
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