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1. What really is a mortgage benchmark rate?
The benchmark interest rate is one of the benchmarks for apartment rentals. It is used to apply changes in the mortgage interest rate to rents. Thus, the benchmark interest rate reflects the costs incurred by the homeowner to finance a property. It is decisive for the rents of most rental apartments; for example, cooperative apartments whose rental rates are subject to state control are excluded.
2. Can tenants demand lower rents based on the reference interest rate?
Yes, they can if the benchmark interest rate drops. Anyone who has lived in the same apartment for several years and has never asked for a rent reduction can even claim that the benchmark interest rate has dropped multiple times over time. The tenants association (MV) has a sample letter ready to request a rent reduction. A reduction in the benchmark interest rate by 0.25 percentage points corresponds to a decrease in rent of about 2.9 percent. However, homeowners have the option of offsetting rent reductions due to mortgage interest with increased property maintenance and operating costs. Certain landlords automatically grant rent reductions on their own.
3. Can a change in the benchmark interest rate also lead to an increase in income?
Yes, if the interest rate goes up, landlords can use this to increase rents. But that has never happened since the introduction of the benchmark interest rate in 2008.
4. What if my landlord does not want to adjust the rent?
Anyone who requests a rent reduction and does not agree with the landlord’s response can contact an arbitration authority. It is also important for tenants to know that they should not fear termination if they file a request for abatement. On the contrary, in this case the tenant is legally protected against termination under the MV.
5. How is the interest rate actually calculated?
The reference interest rate corresponds to the volume-weighted average interest rate of all mortgage loans from Swiss banks. The rate is calculated by the Swiss National Bank on behalf of the Federal Housing Office (BWO). Banks must provide the National Bank with the necessary data for this. The average rate resulting from the calculations is rounded up or down to a quarter percent. (dv)
