The property professionals’ solution

On June 20, 2025, the Swiss National Bank lowered its key interest rate to 0% (previously 0.25%) to counter emerging deflation, support economic activity, and curb the excessive appreciation of the Swiss franc.

Why this decision?

• Near-zero inflation (0.1% in May 2025) and heightened deflation risk.
• The Swiss franc remains too strong, hurting exports and reducing import prices: a zero rate reduces the attractiveness of CHF investments.
• The SNB confirms it does not rule out a return to negative rates in September if needed, but remains very cautious.

Favorable impacts for brokers

1. More attractive financing conditions
   • SARON mortgages, directly linked to short-term rates, should theoretically drop by ~0.25 pp. However, banks’ margins remain unchanged, limiting the actual decrease (SARON rate: 0.95%).
   • Fixed-rate mortgages (5 to 10 years) remain highly attractive, often below 1.5% and sometimes around 1%. Opportunities: encourage clients to secure or renegotiate their loans now.


2. Rising demand: more deals to capture
   • With cheaper credit and low savings yields, many households and investors turn to real estate or renegotiate existing loans.
   • Demand is particularly strong in peripheral regions, mid-range properties, or investment buildings.


3. Upward price pressure: realities and limits
   • Limited supply (regulations, scarce land, construction costs) intensifies price increases already evident in recent months (+2.4% year-on-year).
   • The UBS Real Estate Bubble Index still classifies the bubble risk as moderate.
     For brokers: anticipate these changes in your valuations and sales arguments.

Strategies brokers should adopt

Renegotiating existing loans
Offer your clients to renegotiate fixed or SARON rates to lock in low financing costs.

Acquiring new properties
Highlight the very attractive long-term rates to prospective buyers.

Rental investments
Emphasize advantageous financing in rental offerings by stressing the low borrowing costs.

Promoting proactive advice
Inform existing clients of the SNB's decision and propose a personalized review of their situation.

Points of caution

• Lag effect of fixed rates: even with a zero policy rate, fixed mortgage rates follow medium-term financial markets and may not reflect this drop immediately.
• Bank margins: banks may limit the effect on SARON rates by maintaining their margin on the zero rate.
• Risk of rate rebound: if inflation picks up or global conditions shift, the SNB may adjust its monetary policy.

Conclusion

The SNB's decision to cut its policy rate to 0% for the first time in history creates a particularly favorable environment for real estate brokers:

• More accessible financing.
• Increased demand driven by rising investment and real estate appeal.
• Strategic leeway to guide clients in making informed decisions.

Tip for brokers: take advantage of this context now to renegotiate, secure or recommend projects, while staying transparent about the possible limits (market response time, bank margins, monetary outlook).


Sources
propertyowner.ch - Article
oikocredit.ch - Article
zonebourse.com - Article
watson.ch - Article
swisslife.ch - Article
houzy.ch - Article