- In Switzerland, mortgages are currently a little more expensive. This shows a recent poll.
- Long-term mortgage rates have risen to their highest level in four years.
- During the time of the pandemic, the demand for homes was particularly high.
Anyone who wants to buy a house or an apartment usually needs money. For example, a mortgage from the bank. These mortgages have never been cheaper in the past few years. But now there is gradually movement in the market.
According to a recent survey by the newspaper “Finanz und Wirtschaft”, the mortgage interest rate has risen by an average of around 0.25 percentage points – within one month. For ten-year mortgages, for example, banks now charge up to 1.6 percent interest.
The banks have become more cautious. Due to rising inflation, higher interest rates are being charged on the capital market than they are already. This affects the mortgage.
Pandemic increases demand for home ownership
The mortgage business in Switzerland has grown significantly in recent years. Many went into debt in order to buy a house or an apartment. During the time of the pandemic, the demand for homes was particularly high.
Mortgage loans at banks have increased by 43 percent over the past ten years, to CHF 1,100 billion, as current figures show.