Swiss reference interest rate: when you can lower your rent
Switzerland’s mortgage reference rate dropped twice in 2025 — to 1.25%. But many rents are still pegged to higher levels. Do the maths, file in time, and you can claim back several hundred francs a year. Here’s how.
Current mortgage reference rate · Switzerland
Down two steps from its 1.75% peak (Dec 2023) — tenants who set their rent back then can claim a 5.66% reduction today.
What the reference rate is
Since September 2008, rent adjustments in ongoing tenancies are governed not by the national bank’s policy rate but by the mortgage reference rate. The Federal Housing Office (BWO) derives it from the volume-weighted average of all domestic mortgages that banks report quarterly to the SNB, rounded to the nearest quarter-percent.
Because long-term fixed mortgages feed into that average, the reference rate moves slowly — both up and down. A turn in central-bank policy therefore reaches rents only with a delay, and in muted form. The rate applies uniformly across Switzerland and is published four times a year (on 1 March, June, September and December).
The Swiss mortgage reference rate since its 2008 introduction
Why the reduction won’t happen on its own
Switzerland has no state rent control. When the reference rate rises, the landlord acts and announces an increase. When it falls, the opposite happens: the difference stays with the landlord until the tenant explicitly asks for it. This is exactly where many households leave money on the table — the claim exists, but is never filed.
How your reduction claim arises
Miss the 30-day deadline and the process restarts — you must ask the landlord again. The conciliation authority must be petitioned no later than 60 days after the original request.
How much you can claim
Each 0.25-point step changes the net rent by about 3%: +3.0% on an increase, −2.91% on a reduction. The asymmetry is no mistake — a reduction is calculated off the already-lowered amount, so the percentage comes out fractionally smaller.
What matters is the reference rate your current rent is based on. That level is often stated in the lease; if the rent has since been adjusted for a rate change and not contested, the last adjusted level applies. If it sits several steps above today’s 1.25%, the claims stack up:
Your reduction claim down to today’s level (1.25%)
| Rent based on | Reduction claim | on CHF 1,680 net/mo. |
|---|---|---|
| 1.50% | −2.91% | ≈ CHF 49 |
| 1.75% | −5.66% | ≈ CHF 95 |
| 2.00% | −8.26% | ≈ CHF 139 |
| 2.25% | −10.71% | ≈ CHF 180 |
| 2.50% | −13.04% | ≈ CHF 219 |
| 2.75% | −15.25% | ≈ CHF 256 |
| 3.00% | −17.36% | ≈ CHF 292 |
Calculate your rent reduction
Based on the current reference rate of 1.25%.
Or the date of your last rent adjustment — we infer the reference rate that applied then.
Possible reduction claim
−CHF 95per month
≈ CHF 1,141 per year · Reduction 5.66%
New net rent
CHF 1,585
Estimate based on the official transfer rates (BWO / HEV). The landlord may offset inflation and cost increases, so the actual amount can be lower. Net rent only, excluding service charges.
What the landlord may offset
A reduction claim does not mean the rent falls by the full amount. The landlord may offset the reduction against other recognised cost factors — but must justify doing so:
- Inflation: up to 40% of the rise in the consumer price index since the rent was last set.
- General cost increases: maintenance, fees and operating costs, as a flat rate or itemised.
- Local and neighbourhood norms: if the rent already sits at the low end of what’s usual, a reduction below that can be resisted.
How to claim the reduction — step by step
- Check the basis: which reference rate is your rent based on? The lease or the last adjustment notice will tell you.
- Calculate the claim: use an official rent calculator (Tenants’ Association, HEV, or the Zurich courts) that also accounts for inflation and cost increases.
- Request it in writing: send the rent-reduction request to the landlord by registered letter.
- Wait out the deadline: the landlord must respond within 30 days — accept, refuse, or offset.
- Conciliation authority: on a refusal, offset or silence, petition the (free) conciliation authority within 30 days — at the latest 60 days after your original request.
Where the reference rate does not apply
The reference rate governs adjustments in most ongoing tenancies — but not all. The exceptions are:
- Index-linked rents: the rent tracks the consumer price index; during the fixed term (at least five years) other adjustments are generally excluded.
- Stepped rents (Staffelmiete): the rent rises by set amounts on dates agreed in advance.
- Luxury apartments and single-family homes with six or more rooms (excluding the kitchen): the rent is freely negotiable.
- Subsidised apartments: the authority-controlled cost rent applies, not the reference rate.
Frequently asked questions
- What is the reference rate right now?
- It stands at 1.25%, in effect since 2 September 2025 and confirmed on 1 June 2026. The BWO’s next publication is on 1 September 2026.
- Do I get the rent reduction automatically?
- No. Switzerland has no state rent control. You must request the reduction yourself and in writing, ideally by registered letter.
- How much less rent does a 0.25-point step bring?
- A 0.25-point drop gives a claim to 2.91% lower net rent. Several steps stack: from 1.75% to 1.25% that is 5.66%.
- Does the reduction also apply to service charges?
- No. The reference rate affects only the net rent. Separately agreed heating and service charges (Nebenkosten) are not affected.
- What if the landlord refuses?
- You can petition the local conciliation authority within 30 days — the procedure is free. The request must be filed there no later than 60 days after your original request.
- How do I know which level my rent is based on?
- The relevant reference rate is often stated in the lease. If the rent has since been adjusted for a rate change and not contested, that last level applies.