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Key facts:
- The SNB is responding to deflation risks and the strength of the Swiss franc – with zero interest rates for the first time since the end of the negative interest rate phase.
- Saron mortgages and fixed interest rates remain attractive – Basel III continues to ensure strict credit checks.
- Buyers benefit from better affordability – owners with the intention of selling meet a calculable market environment.
The Swiss National Bank lowered the key interest rate to 0.00% on June 19, 2025. The decision is intended to counteract the increasing disinflationary pressure in Switzerland, mitigate the ongoing upward pressure on the Swiss franc and ensure economic stability. It is the lowest interest rate since the exit from the negative interest rate phase.
For real estate owners, buyers and investors, this means new opportunities – but also new questions: How will mortgages develop? Will the market remain stable? And how will demand react?
Initial situation: deflationary trends and currency strength
The key interest rate in Switzerland was last at 0.25%, after several cuts since the beginning of 2024. The move to 0.00% decided today had already been priced in by market players: At an expected 0.3% to 0.4% for 2025, the Swiss inflation rate remains well below the SNB’s target range. At the same time, the strong franc is exacerbating the fall in prices for imported goods and weighing on exports, which is additionally supporting deflationary trends.
With today’s interest rate cut, the SNB is responding to the current environment. The measure is aimed at supporting overall economic demand and bringing inflation back into the stability range defined by the SNB in the medium term.
Forecasts confirmed: Markets expected interest rate cut
Even before the meeting, the majority of analysts and banks expected a further reduction in the key interest rate. Saron futures and futures markets signaled an early expectation of 0.00%. Institutions had clearly predicted the rate cut. Individual assessments even made a return to negative interest rates in the fall of 2025 appear possible.
Effects on mortgages: favorable financing options
With the new key interest rate of 0.00%, short-term Saron mortgages are likely to become even more favorable. Stable low conditions can also be expected for fixed-rate mortgages in the medium term – provided that inflation forecasts remain low. The financing environment is improving again for buyers, but access to mortgages remains clearly regulated: The stricter equity and affordability requirements under Basel III ensure that lending will continue to be carefully scrutinized. Financing remains challenging, particularly for investment properties, second homes or investments with high loan-to-value ratios. Even if interest rates fall, this is no substitute for a solid credit rating and sound financing.
The persistently low interest rates make it easier for buyers to plan ahead, lower the barriers to purchasing residential property in the middle segment and increase the incentive for long-term investments, especially when alternative investments are under pressure.
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Owners with the intention to sell can benefit
There are also new prospects for owners looking to sell. The lower interest rate level improves the financing options for potential buyers, particularly for owner-occupied residential property or income-stable properties with a moderate loan-to-value ratio.
This increases the likelihood of purchase decisions being made more quickly and properties being successfully placed on the market. Owners considering a sale thus benefit indirectly from the monetary policy environment and lower key interest rates. Demand is gaining stability and the transaction environment is becoming more predictable – provided that the price and key property data are consistent. With a professional pricing strategy, higher sales proceeds can be realized.
Anyone planning a sale, for example as part of a succession plan, for reasons of age or to adjust their portfolio, should have the current market conditions professionally assessed.
What’s next? Looking ahead to fall 2025
While today’s decision was largely expected, attention is now turning to the SNB’s future monetary policy course. Should economic risks intensify, a further reduction in the key interest rate – possibly into negative territory – cannot be ruled out. However, the SNB remains cautious and is monitoring the effect of the measures taken so far.
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Conclusion: Stability for owners – opportunities for buyers
The SNB is sending a clear signal with its decision to set the interest rate at 0.00%: it is prioritizing economic stability. For owners, financing costs remain low and sales opportunities remain high, while buyers once again enjoy favorable entry conditions. Anyone wishing to take a strategic approach to the development of their property should take advantage of the current interest rate advantage – whether for a sale, reinvestment or mortgage optimization.
