Homeowners, beware: Mortgage rates are rising

The Federal Council reactivates the countercyclical capital buffer. This is likely to push up mortgage rates further.

Interest rates are rising in Switzerland: While the interest rate for Swiss government bonds with a term of ten years was minus 0.75 percent at the beginning of 2020, it is now minus 0.041 percent. Soon they could turn positive, as has already happened with German Bunds.

The rise in interest rates on government bonds can also be seen in the mortgage market. If a ten-year fixed-rate mortgage still cost 1.2 percent at the beginning of 2020, it is currently 1.5 percent (according to Moneypark). Financing your own home for ten years with such a mortgage has therefore become 30,000 francs more expensive.