The reference mortgage rate remains at 1.25 percent
The mortgage reference rate for tenancies remains unchanged at 1.25 percent. It applies to rent structure throughout Switzerland. According to the Federal Housing Office, the rate has been unchanged for a year.
The Federal Housing Office (BWO) has left the mortgage reference rate for tenancies unchanged at 1.25 percent. In a press release by the BWO, it is pointed out that this rate, which applies to rent structuring throughout Switzerland, has not been changed since March 3, 2020.
The reference interest rate is determined on the basis of the quarterly average interest rate for domestic mortgage claims. This was determined on December 31, 2020. According to the BWO, the rate fell from 1.30 percent to 1.28 percent in the previous quarter. The reference interest rate applicable under rental law remains at 1.25 percent and remains at this level until the average interest rate falls below 1.13 percent or rises above 1.37 percent, explains the BWO. The rate is always given with a quarter percent accuracy.
Since the rate remains unchanged, according to the BWO, there is no new lower or higher claim. If a rent in the individual contractual relationship is not based on the current reference interest rate of 1.25 percent, there is a right to a reduction. Changes in costs, for example in the case of maintenance costs, could also lead to an adjustment claim.
