Swiss reference rate holds at 1,25%: Can you still request a rent cut?

The mortgage reference interest rate in Switzerland, which affects whether the cost of rent across the country goes up or down, remains stable at 1,25 percent.

Rent in Switzerland to remain stable this quarter

The amount renters in Switzerland pay will likely stay the same for now, as the mortgage reference interest rate has remained unchanged and at the historic low reached in September 2025. In some circumstances, rent can go up because of inflation or maintenance costs. 

The Swiss Tenants’ Association (Mieterinnen- und Mieterverband Schweiz or MVS) explained that many tenants may still be able to demand a reduction in rent because “numerous households have not yet claimed their rights following the two interest rate cuts last year,” according to Watson. 

In 2025, the reference interest rate dropped from 1,75 to 1,50 in March and then to 1,25 in September. With each quarter of a percentage reduction, tenants can ask landlords to reduce net rent by around 3 percent.

According to the Zurich Cantonal Bank, just 12 percent of tenants in Switzerland had requested a rent reduction by April 2026. Use the MVS calculator to see if you are entitled to a reduction as part of your rental agreement.

What is the Swiss mortgage reference interest rate?

Each quarter, the Federal Office for Housing (Bundesamt für Wohnungswesen or BWO) releases the Swiss mortgage reference interest rate (hypothekarischer Referenzzinssatz). The government sets the figure, which reflects the average interest rate Swiss banks are currently charging for mortgages.

The rent that residents pay is linked directly to the mortgage reference interest rate. If the rate goes up, landlords will likely increase rent, while if it drops, anyone renting in Switzerland may be entitled to ask for a rent reduction.