Swiss mortgage volume reaches 983 billion francs

The financial accounts of the Swiss National Bank paint a contradictory picture for 2025. While private household debt is once again rising, real estate assets and financial investments are increasing even more strongly. Net wealth of Swiss households thus rises to 5132 billion francs, an increase of 4.6 percent compared to the previous year.

Mortgages drive debt

Total household liabilities reached around 1070 billion francs at the end of 2025. Of this, 983 billion are mortgages, by far the largest item of private debt. Compared to the previous year, mortgage debt increased by 29 billion, which corresponds to growth of 3.1 percent. This extends the upward trend that has been stable for years, supported by rising property prices and continued strong demand for home ownership.

Over a period of 25 years, household liabilities have more than doubled. Liabilities rose by 123.2 percent, but real estate assets grew by 203.4 percent. This means that the asset side of the household balance sheet has grown more quickly than the liabilities, a key reason why the debt ratio relative to real estate values tends to fall.

Real estate wealth grows more than debt

According to the SNB, household real estate assets rose by 140 billion to 2924 billion francs in 2025, an increase of 5.0 percent. Financial investments grew by 119 billion to 3278 billion francs. This means total household gross assets exceed 6200 billion francs, with the aforementioned 1070 billion in debt on the liabilities side.

This ratio remains comfortable from a macroeconomic perspective. Real estate wealth is, on average, about three times as high as mortgage debt, corresponding to an aggregated loan-to-value ratio of around 34 percent. However, this number is deceptive, as it includes all property owners, many of whom own fully paid-off or even debt-free properties. The actual loan-to-value of new mortgages is significantly higher.

What the figures mean for individual households

Statistical aggregates hide the differences. While older owners with old mortgage contracts often have low leverage, young buyers regularly finance close to the regulatory upper limit of 80 percent. If the interest rate level rises noticeably again, the additional costs will mainly affect this group, as well as owners of investment properties with high leverage.

The estimated mortgage volume per household is around 213,000 francs, averaged over all Swiss households including tenants. For owner-occupier households only, the average outstanding debt is likely in the range of 500,000 to 600,000 francs. An increase in interest rates by one percentage point would raise the annual interest burden of the mortgage sector by nearly 10 billion francs.

Risks remain latent

In its statement, the SNB does not highlight any acute risks, but regularly points out that Switzerland is among the most highly-indebted economies at the household level internationally. The ratio of mortgage debt to GDP has been at around 130 percent for years—a level reached in only a few industrialised countries.

A stabilising factor is that most mortgages are tied to fixed-rate mortgages with long terms. A sudden surge in costs, as seen in markets with short interest periods, is therefore unlikely. Nevertheless, the system is heavily dependent on real estate values. Should property prices undergo a sustained correction, loan-to-value ratios would rise and banks would become more restrictive with refinancing.

Outlook

With the mortgage market reaching the 983 billion mark, the Swiss market is approaching the psychologically important threshold of one trillion francs. At the current pace of growth, this milestone is likely to be reached in 2026. For owners, little will change in the short-term; refinancing conditions remain favourable given the low SNB base rate. In the long term, the market's stability depends on whether incomes and property values keep pace with debt levels.