How tenants in Switzerland can benefit from the new lower interest rates

How tenants in Switzerland can benefit from the new lower interest rates

On March 3rd, the Federal Housing Administration (BWO) has cut its reference interest rate. What does this mean for Switzerland's tenants?

The most recent SNB interest rate reductions have had an effect. The reference rate has fallen by a quarter of a percentage point to 1.5%, resulting in a right to a reduction in rent rates in some leases – but not in all.

The Ministry of Energy has published new weighted total cost capital rates for renewables and the electricity grid for 2025. For large photovoltaic plants it is 5.10 percent, for all other photovoltaic plants 4.58 percent.On Monday, the Federal Department of Environment, Transport, Energy and Communications (UVEK) published new weighted average cost of capital (WACC) for renewable plants and electricity grids for the year 2025. They refer to suc…

The reference interest rate is falling. Some tenants will benefit from it. However, the tenant association also warns against possible increases.

The Federal Office of Housing has reduced the relevant interest rate for many rental contracts. Therefore, rents are now expected to fall. However, not all of them benefit – and landlords can also claim surcharges.

Good news for tenants in Switzerland. The mortgage reference rate is down from 1.75 to 1.50 percent.