Current reference interest rate
1.25 %
Valid since 02.09.2026. Source: Federal Office for Housing (BWO).
Entitlement to a reduction per tier
| Levels | Reference interest rate falls by | Reduction | For a rent of CHF 2,000 |
|---|---|---|---|
| 1 | 0.25 % | 2.91 % | CHF 58.20 |
| 2 | 0.50 % | 5.74 % | CHF 114.80 |
| 3 | 0.75 % | 8.49 % | CHF 169.80 |
| 4 | 1.00 % | 11.15 % | CHF 223.00 |
Trend in the reference interest rate since 2008
| Valid from | Reference interest rate |
|---|---|
| 02.09.2025 | 1.25 % |
| 04.03.2025 | 1.50 % |
| 02.12.2023 | 1.75 % |
| 02.06.2023 | 1.50 % |
| 03.03.2020 | 1.25 % |
| 02.06.2017 | 1.50 % |
| 02.06.2015 | 1.75 % |
| 03.09.2013 | 2.00 % |
| 02.06.2012 | 2.25 % |
| 02.12.2011 | 2.50 % |
| 02.12.2010 | 2.75 % |
| 02.09.2009 | 3.00 % |
| 03.06.2009 | 3.25 % |
| 10.09.2008 | 3.50 % |
What is the reference interest rate?
The reference mortgage interest rate is the interest rate used as a benchmark for rents on flats and commercial premises. The Federal Office for Housing (BWO) calculates it based on the average interest rate on domestic mortgage loans held by banks and rounds it to the nearest quarter of a per cent.
The BWO publishes the rate on a quarterly basis. The legal basis is Art. 12a VMWG; the effect on the rent is governed by Art. 13 VMWG and Art. 270a OR.
How does a reduction in rent affect you?
If the reference interest rate falls, tenants are generally entitled to a reduction in their net rent, provided the landlord cannot cite increased costs or inflation as grounds for not doing so. The table below shows the calculated entitlement per tier before deductions.
For rates below 5 per cent, a quarter of a per cent corresponds to a 3 per cent change in rent, based on the new rent. Converted to the previous rent, this amounts to 2.91 per cent per step.
When is it worth having a text checked?
The reference interest rate applicable at the time of the last rent assessment – i.e. at the start of the tenancy or the last rent adjustment – is important. Any reductions in the interest rate since then may give rise to a claim.
Contracts with graduated or index-linked rent are subject to special rules. In such cases, it is worth assessing each situation individually.
Apply for a rent reduction
Using the ‘Rent Reduction’ service, you can create your request for a rent reduction online. We will send it to your landlord via ‘A-Post Plus’ or registered post.
Frequently Asked Questions
The Federal Office for Housing (BWO) calculates the rate based on the average interest rate on mortgage loans held by banks in Switzerland and publishes it quarterly.
It is reviewed every quarter, but only changes if the average interest rate rises above or falls below a quarter-percent threshold. It often remains the same for several quarters.
Mathematically, 2.91 per cent of the net rent per quarter of a per cent reduction, before inflation and cost increases are deducted.
More on the topic of rent
- Rent calculatorSwiss rent calculator: Calculate a rent reduction (2026)
- Apply for a rent reductionApplying for a rent reduction in Switzerland: written request, deadlines, termination date and typical grounds for refusal under Art. 270a CO.
- Inflation (LIK) and cost increasesWhy landlords may deduct 40% of inflation (LIK) and a flat-rate allowance for cost increases: clearly explained, with a sample calculation and a free calculator.
This page provides general information and is not a substitute for legal advice. In individual cases, cost increases, investments or local and neighbourhood customs may lead to a different outcome.
By Kubilay Demirci, AboQuit.ch · Last reviewed:
Sources
- Bundesamt für Wohnungswesen: Referenzzinssatz
- Obligationenrecht (OR), SR 220, insbesondere Art. 269a und Art. 270a
- Verordnung über die Miete und Pacht von Wohn- und Geschäftsräumen (VMWG), SR 221.213.11, insbesondere Art. 12, 12a, 13 und 16