In Switzerland, the Referenzzinssatz (reference interest rate) is an important benchmark for determining rent adjustments, as it directly influences the cost of renting properties. It is based on the average interest rate of existing mortgage loans in the Swiss market. Conceptually, the Referenzzinssatz is calculated as follows:
1. Average of Outstanding Mortgage Interest Rates
The calculation begins with determining the average interest rate of all outstanding mortgage loans that Swiss banks have issued. This includes fixed-rate mortgages, variable-rate mortgages, and other mortgage products. The rates from a wide pool of loans across the country are included to ensure the Referenzzinssatz reflects the overall mortgage market.
2. Data Collection by the Swiss National Bank
The Swiss National Bank (“SNB”) collects data from Swiss banks regarding the interest rates of their outstanding mortgage loans. These interest rates represent long-term averages and are not tied to short-term fluctuations in the market. They are updated quarterly based on the outstanding mortgages on the books of the banks.
3. Rounding
Once the average interest rate of all outstanding mortgage loans is calculated, it is rounded to the nearest quarter percentage point (0.25%). This rounded figure is then published as the official Referenzzinssatz.
4. Publication and Adjustment Cycle
The Referenzzinssatz is reviewed and adjusted on a quarterly basis, typically on the first day of March, June, September, and December. However, it changes only when the difference between the calculated average interest rate and the current Referenzzinssatz exceeds 0.125%. This is to avoid frequent small fluctuations.
Related posts:
- interest rate reduction = possible rent reduction [Referenzzinssatz]
- rent reduction?
- Rent increase taking on new rental?
- Rent increase reservation on new contracts
- Flat rental increase
- Tenant rights - rent increase