Need to adjust the reference interest rate? Contact us as a tenant with any queries via our tenant portal myLivit.
What is the reference interest rate?
In Switzerland, there are legal requirements that landlords must comply with when setting rent. There are also statutory bases for adjusting rent up or down.
One criterion used when changing the amount of rent charged is the mortgage reference interest rate. This is calculated by the Swiss National Bank and is the average of all the interest rates applied to mortgages in Switzerland – rounded to ¼ %. This video (right) by the Swiss Federal Housing Office gives a good explanation of the reference interest rate.
Source: Federal Office of Housing (BWO, german version)
Why are rents linked to the mortgage reference interest rate?
On the one hand, owners need to be able to finance their properties and, on the other hand, these properties need to form reserves for future investments. If the owners are pension funds, they have the additional task of protecting these pensions.
If mortgage interest rates – and therefore the costs for owners – rise, they can pass these costs on to their tenants. It is a landlord’s responsibility to take action if they want to adjust their rent. Equally, it is up to their tenants to request a rent reduction if the reference interest rate goes down.
How has the reference interest rate changed up to now?
Since its introduction in 2008, the reference interest rate has fallen continuously until march 2023. It increased for the first time as of June 1st 2023, from 1.25% to 1.5%. On 1 December 2023, the reference interest rate rose again from 1.5 to 1.75%. On 1 March 2025, the reference interest rate was reduced from 1.75 to 1.5%.
Further questions about the reference interest rate are answered in our FAQ.
What does it mean for me, as a tenant, if the reference interest rate drops?
What does it mean for me, as a tenant, if the reference interest rate drops?
If the reference interest rate drops, tenants may generally request a rent reduction. The amount of this rent reduction depends on your reference interest rate before the drop. As a rough guide, you can request a rent reduction of almost 3 percent per 0.25 percentage point interest rate change.
Please send your reduction request to us via our digital tenant portal myLivit.