On October 15, 2018, the average guide interest rate for 5-year FRMs was 1.19%. Since then, the average interest rate has gone down by 0.23 percentage points to 0.96% on July 9, 2019.
The average interest rate for 10-year FRMs went down by 0.62 percentage points to 1.08% over the same period. “That equates to a 35% drop since mid-October 2018,” states moneyland.ch analyst Felix Oeschger.
All-time low for fixed-rate mortgages
The moneyland.ch mortgage index shows that short-term FRMs and FRMs with exceptionally long terms are currently at all-time lows.
The average interest rate for 2-year FRMs is currently just 0.91%. The average rate for 15-year fixed-rate mortgages is just 1.37% per annum. “Swiss mortgages have never been so affordable,” says moneyland.ch CEO Benjamin Manz.
Differences between lenders still large
Although interest rates are generally low, there are still major differences in the interest rates charged by different Swiss banks and insurance companies. Interest rates for 5-year FRMs range between 0.54% and 1.20% at different lenders. Interest rates for 10-year FRMs range between 0.83% and 1.30%. The most expensive mortgage offers can cost twice as much as the cheapest offers. Online mortgages continue to list among the most affordable offers.
Interactive mortgage interest rate comparison