The reference interest rate in Switzerland – impact on your rent

The mortgage reference interest rate was introduced in 2008 and has since replaced the previously decisive mortgage interest rates of the cantonal banks. It is published quarterly by the Federal Office for Housing (BWO) and is based on the volume-weighted average interest rate of all domestic mortgage claims of the banks.

The reference interest rate serves as the basis for rent adjustments. It applies uniformly across the whole of Switzerland and is rounded to quarter-percentage points.

The reference interest rate is directly linked to your rent. If the reference interest rate falls by 0.25 percentage points, you as a tenant are entitled to a rent reduction of approximately 2.91%. If the reference interest rate rises by 0.25 percentage points, the landlord may demand a corresponding rent increase.

Important: the adjustment does not happen automatically. As a tenant, you must actively request the reduction from the landlord. Conversely, the landlord must communicate any increase formally using the official form.

If the reference interest rate has fallen and your landlord has not voluntarily adjusted the rent, you can proceed as follows:

If the reference interest rate rises, the landlord can demand a rent increase. However, this must be done in a formally correct manner:

The reference interest rate is not the only factor influencing rent. Rental defects can also justify a reduction. In addition, landlords may also claim cost increases:

Keep an eye on the reference interest rate, which is published on 1 March, 1 June, 1 September and 1 December. Check with every change whether your rent is still justified. Learn more about your rights and obligations as a tenant in our guide. The tenants' associations offer free advice and template letters for reduction requests.

Incidentally: regardless of the reference interest rate, you can increase your financial flexibility with rental deposit insurance from goCaution. Instead of locking thousands of francs in a blocked account, your money remains available – for the things that truly matter.