Housing: Reference rate remains stable
The mortgage reference rate, which applies to rents throughout Switzerland, remains stable at 1.25%.
The reference rate is based on the quarterly volume-weighted average interest rate of domestic mortgages. This average interest rate, calculated with a cut-off date of 31 December 2019, fell to 1.35% from 1.37% in the previous quarter, according to a statement from the Federal Housing Office (FHA).
The interest rate relevant under tenancy law is therefore 1.25%, rounded in accordance with commercial practice, the BWO said. Since it has not changed compared to the previous quarter, there is no new reduction or increase claim for tenants and landlords since the last announcement at the beginning of March.
The mortgage reference rate and the underlying average interest rate are published quarterly by the BWO. The next publication will take place at the beginning of September. (ah)
