Fourth Interest Rate Cut Brings Record-Low Mortgage Rates

Basel, 17.12.2024

Merry Christmas: Fourth Interest Rate Cut Brings Record-Low Mortgage Rates

The Swiss National Bank (SNB) has delivered its fourth interest rate cut this year, lowering the benchmark rate by 50 basis points to 0.5 percent. As a result, mortgage rates for both fixed-rate and SARON mortgages are at their lowest levels since early 2022. This significant rate drop has reignited demand for homeownership and makes comparing mortgage offers more critical than ever.

Mortgage Rate Trends

Fixed-rate mortgages near 1 percent: Mortgage interest rates have fallen by approximately 80 basis points since summer 2024 and are now at levels last seen between 2016 and 2021. Compared to the end of September, rates have dropped by another 30 basis points.

SARON mortgages become attractive: With the latest rate cut, SARON mortgages are now a highly competitive option. Their interest rates are approaching those of short-term fixed-rate mortgages, offering an excellent opportunity for cost-conscious borrowers.

Why Comparing Mortgages Now Pays Off

• Secure the best mortgage rates: Competition among banks, insurers, and pension funds has intensified, driving down top mortgage rates. Comparing offers is essential to find the best deal.
• Fixed-rate or SARON mortgage?: Fixed-rate mortgages provide stability at rates close to 1 percent, while SARON mortgages offer flexibility and cost efficiency.
• Plan for the long term: Despite the low interest rates, it’s crucial to assess the long-term affordability of your mortgage. Use mortgage calculators to estimate your monthly costs.

Outlook: Are Rates Set to Drop Further?

Experts predict that mortgage rates may continue to decline over the next three months before stabilizing at a low level. Interestingly, one-third of respondents even foresee a potential return of negative interest rates in 2025, marking a full comeback of the ultra-low rates we experienced in previous years.

Conclusion: Act Now and Benefit

Whether you’re taking out a new mortgage in Basel or renewing your current one, comparing mortgages is more important than ever. With the lower benchmark rate, attractive fixed-rate mortgages, and competitive SARON mortgages, now is the time to secure the best possible deal.

Contact us today to find the perfect mortgage tailored to your needs. Use our mortgage calculator and let us help you take advantage of these record-low interest rates to secure your dream home.