Swiss mortgage market breaks 1.3 trillion francs: What the record means

In 2025, the Swiss mortgage market exceeded the threshold of 1.3 trillion francs for the first time. Behind the record volume are structural shifts among lenders, which open up new negotiation opportunities for mortgage borrowers.

Volume growing faster than the ten-year average

The volume of outstanding mortgages in Switzerland grew by 3.1 percent to 1,310 billion francs in 2025. In absolute numbers, this equals an increase of around 39 billion francs in a single year. This is highlighted by the 2025 Mortgage Market Study from MoneyPark and Helvetia. For the first time since 2022, growth is thus again above the ten-year average of 3.0 percent and clearly higher than in the previous two years, when the increase was 2.6 percent (2024) and 2.4 percent (2023).

The record comes at a time when the Swiss National Bank is keeping the key interest rate at zero percent and property prices continue to rise. As a third driver, the study identifies the owner-occupied housing market itself: in 2025 it was more liquid than it had been in ten years. More property handovers mean more new financings, and both of these factors together promote both demand for home ownership and the refinancing of existing mortgages on comparatively favorable terms.

Raiffeisen and cantonal banks share the growth

The real story, however, lies in the distribution of the growth. The Raiffeisen Group grew by 4.6 percent in 2025, making it the fastest-growing banking group. The cantonal banks followed with an increase of 3.9 percent. Together, the two groups absorbed 29 billion francs, or about three-quarters of the total net growth.

UBS, as the largest provider in the market, kept its volume virtually stable and grew by just 0.1 percent. From the bank’s own perspective, this was a success, since after the integration of Credit Suisse the bank had initially experienced a marked decline. For market dynamics, however, the stagnation means that UBS’s lead over the Raiffeisen Group has shrunk to around 52 billion francs. If this pattern continues, Raiffeisen could become the country’s largest provider by mortgage volume within a few years.

Pension funds overtake insurers for the first time

A historically notable shift is occurring outside the banking sector. Pension funds grew by around eight percent in 2025, thereby narrowly overtaking insurers. They are now the second most important provider group after the banks and thus the largest bank-independent force in the mortgage business. Measured against the total market, the share of both groups remains moderate at around two to three percent each, but the trend is clear.

The reason lies in the investment policies of the pension schemes. In view of persistently low returns on bonds, pension funds are searching for stable, long-term income. Direct mortgage lending to home owners offers predictable cash flows over the entire term of a fixed-rate mortgage and is thus suitable for servicing pension commitments. Life insurers, meanwhile, are running up against regulatory and business model-related limits. For borrowers, this opens up an additional funding source beyond traditional bank financing, often with long maturities and individually negotiated terms.

Margins under pressure: Net margin at 1.16 percent

The volume growth should not obscure the fact that the earnings situation for mortgage providers remains strained. The average net interest margin in the mortgage business fell year-on-year by ten basis points to 1.16 percent. Compared to the 2023 peak, the decline is already 24 basis points. The authors put it in a nutshell: the volume comeback is not an earnings comeback.

This development is driven by intense competition for new customers and refinancing deals. The margin boost from the interest rate turnaround is gradually being eroded, and lower refinancing costs could only partially offset the trend. Those taking out or renewing a mortgage today benefit from the fact that providers have to compete on terms in order to participate in the growth at all. Low margins are a burden for banks, but for borrowers they represent a direct opportunity for cheaper deals.

What borrowers should take away from the record year

Three observations are relevant for individual financing decisions. First: Competition among provider groups is real. Those closing or renewing a mortgage should obtain at least three offers from different segments, for example a major bank, a cantonal or Raiffeisen bank, and a bank-independent provider such as a pension fund or an insurer.

Second: The bank is no longer automatically the cheapest choice. Pension funds and insurers often offer attractive fixed-rate mortgages with long terms. For borrowers seeking planning certainty over ten years or more, a direct comparison pays off.

Third: Low margins are likely to translate into negotiable terms. Those who use the published reference rates as a starting point and actively request a discount have good chances of a lower interest rate, especially with solid affordability and moderate loan-to-value.

Outlook for 2026

Based on the first quarter and persistently low interest rates, the authors expect market growth in 2026 to be on a similar scale as the previous year. The forecast is supported by rising transaction numbers in the property market and persistently strong demand for home ownership. Margins are expected to remain under pressure, however. Thus, the environment will remain favorable for borrowers as long as the key interest rate stays low and competition among provider groups continues.

The structural shift in favor of Raiffeisen, cantonal banks, and pension funds is likely to continue. For individual mortgage selection, this means above all: comparing pays off more than ever.

Sources

• MoneyPark and Helvetia: Mortgage Market Study 2025 “The Swiss Mortgage Market 2025”, published July 16, 2026 (primary source), moneypark.ch
• cash.ch: "Swiss mortgage market 2025 again grew above average", July 16, 2026
• Swiss National Bank: Monetary policy assessment (key interest rate), snb.ch