Yield curve and yield structure
For mortgages
The is one of the most important tools for analyzing It shows at a glance how much the interest rates of different differ and how the current market situation has evolved. Understanding the yield curve allows you to better compare mortgages, choose the right term, and make more informed decisions.
Mortgage Rates in Switzerland
Mortgage rates are the cost of the borrowed mortgage capital. Since they can vary widely in Switzerland—depending on the provider, model, term, and risk profile—a transparent mortgage comparison in Switzerland is particularly important.
The term of the mortgage refers to the period for which a mortgage is taken out under the agreed terms. Depending on the type of mortgage, the term can range from a few months to many years. The choice of term affects, among other things, the interest rate, planning security, and the flexibility of the financing.
Explanation
What is a mortgage yield curve?
The yield curve (also known as the interest rate curve) is a graphical representation of mortgage interest rates for various terms. It shows how high the interest rates are, for example, for a a two-year fixed-rate mortgage, a or a . The yield curve illustrates how much the interest rate rises or falls as the Term lengthens. It is therefore an important tool for choosing a mortgage strategy and the appropriate Term.
Five-Year Fixed-rate Mortgage
A five-year fixed-rate mortgage is a mortgage with a fixed interest rate over a five-year term. During this period, the mortgage interest rates remain unchanged, which allows for a high degree of predictability when planning financing costs. It is one of the most popular Mortgage loan models in Switzerland and strikes a balance between security and flexibility. Learn more here: Fixed-rate mortgages with the best interest rates
Ten-Year Fixed-rate Mortgage
The ten-year fixed-rate mortgage is one of the most popular Mortgage loan models in Switzerland. The interest rate is fixed for the entire ten-year term and remains unchanged regardless of fluctuations in mortgage rates. This allows homeowners to benefit from a high degree of planning certainty and consistent financing costs.
Understanding Yield Curves
Interest rates on short-term Mortgages are generally lower than those on long-term Mortgages. However, the size of this difference changes constantly.
A is when long-term mortgages are significantly more expensive than short-term ones. A is when the differences between short- and long-term terms are small. In rare cases, long-term mortgages are even cheaper than short-term ones. This is referred to as an
Analyzing the yield curve helps provide a better understanding of the current market situation and assess the pros and cons of various Mortgage loan models.
A steep yield curve occurs when long-term mortgages have significantly higher interest rates than short-term mortgages. For example, a ten-year fixed-rate mortgage can be noticeably more expensive than a SARON mortgage or a short-term fixed-rate mortgage. A steep yield curve often indicates that financial markets expect higher interest rates or higher inflation in the future. For mortgage borrowers, a steep yield curve means that long-term interest rate security comes at a correspondingly higher cost.
A flat yield curve occurs when the interest rates on short-term and long-term mortgages differ only slightly from one another. The price difference between a SARON mortgage, a five-year fixed-rate mortgage, or a ten-year fixed-rate mortgage is then relatively small. A flat yield curve often indicates that financial markets expect interest rates to remain stable or decline slightly in the future.
An inverted yield curve occurs when long-term mortgages are cheaper than short-term mortgages. In this rare case, for example, a 10-year fixed-rate mortgage costs less than a SARON Mortgage or a short-term Fixed-rate mortgage. An inverted yield curve usually occurs when financial markets expect interest rates to fall significantly in the future.
Daily interest rate curve
Updated hourly
Target audience
The yield curve is important for mortgage borrowers
Many homeowners focus exclusively on the current interest rate. However, the shape of the yield curve is often just as important.
Among other things, the yield curve shows:
- How expensive long-term interest rate security is right now
- Whether short or long terms seem more attractive
- How much prices differ across various Terms
- What the market expects regarding future interest rate trends
Those who understand the yield curve are better able to assess whether a short- or long-term fixed-rate mortgage currently seems attractive or whether a SARON mortgage might be a good option.
Frequently Asked Questions
Answers about the yield curve
The yield curve shows how much extra interest rate security costs. It helps assess whether short or long terms are currently more attractive. Those who understand the yield curve can more effectively and make more informed decisions.
Swiss Mortgage Rate Comparison
It’s worth carefully comparing mortgage rates in Switzerland. The comprehensive rate comparison for Swiss mortgage providers from HYPOTHEKE.ch provides a good overview. This interest rate comparison is one of the largest in Switzerland and includes the daily updated mortgage rates from banks, pension funds, insurance companies, and investment foundations. You can find our best mortgage rates here: Best Mortgage Rates
No. The yield curve is not a forecast; rather, it reflects market participants’ current expectations. It provides insight into market sentiment but does not guarantee future trends in mortgage rates.
The yield curve is influenced by factors such as inflation, the SNB’s key interest rate, economic trends, capital markets, and the supply and demand for Mortgages. International interest rate trends also affect Swiss mortgage rates.
No. Banks, and calculate differently. That is why the providers’ yield curves sometimes differ significantly. The cheapest provider for a SARON Mortgage is often not the same as for a ten-year fixed-rate mortgage.
A mortgage from an investment foundation is a real estate financing product provided by an investment foundation. Investment foundations invest pension fund assets in mortgages, among other things, and often offer attractive mortgage rates as well as long-term financing solutions. Because they typically do not have their own sales teams, mortgages from investment foundations can often only be arranged through mortgage platforms. HYPOTHEKE.ch collaborates with several investment foundations and applies for some of them.
The yield curve shows which providers offer particularly attractive mortgage rates for specific terms. It allows for a quick comparison between banks, insurance companies, and pension funds, helping you find the best mortgage for your specific situation. As a result, mortgage borrowers in Switzerland can often save several thousand francs.
Beautiful Curves
The Different Shapes of the Yield Curve
Standard form
Rising yield curve
Sample data from December 15, 2013
Interpretation
Rising yield curve
In a normal yield curve, interest rates rise as the Term increases.
This is the most common form of the yield curve. Mortgage lenders charge an additional premium for longer terms to compensate for interest rate risk and the long-term commitment of capital.
A steepening yield curve may indicate that the market expects interest rates to rise in the long term.
Stable market conditions
Flat yield curve
Sample data from July 1, 2020
Interpretation
Flat yield curve
When the yield curve is flat, interest rates for different terms differ only slightly or not at all.
In such market phases, long-term fixed-rate mortgages are often particularly attractive because the added interest rate security comes at a relatively low cost. A flat yield curve is frequently observed when the market anticipates falling interest rates in the future.
Rare form
Inverted yield curve
Sample data from July 10, 2023
Interpretation
Inverted yield curve
In an inverted yield curve, long-term mortgages are cheaper than short-term ones.
An inverted yield curve is rare and is often seen as an indication that market participants expect interest rates to fall significantly in the future.
In Switzerland, for example, inverted yield curves were observed in the early 1990s and at times in the more recent past.
Variation
Types of providers
Sample data from July 10, 2025
Yield curves vary from provider to provider
One important point is often overlooked: Every mortgage lender has its own yield curve. Banks, insurance companies, Pension funds, and investment foundations use different calculation methods. That’s why the cheapest provider for a SARON mortgage might suddenly turn out to be significantly more expensive for a ten-year fixed-rate mortgage.
Anyone looking for the should therefore not only compare the terms but also always consider multiple providers.
Mortgage with the Best Interest Rate
The Mortgage with the best interest rate isn’t always the first offer you see, but rather the one with a low interest rate, suitable terms, and transparent fees. A comprehensive comparison of mortgage providers’ interest rates increases your chances of saving money. For a personalized calculation of offers, you can use mortgage marketplaces such as HYPOTHEKE.ch.
No forecasts
The yield curve reflects expectations
The yield curve is often used to draw conclusions about future trends in mortgage rates. However, it is important to note that the yield curve is not a forecast.
It merely shows what expectations market participants currently have.
The yield curve is influenced in particular by:
- Economic growth
- Capital markets
- Risk and liquidity premiums
- Supply and Demand for Mortgages
That is why banks, institutional investors, and professional investors are closely monitoring the development of the yield curve.
Inflation refers to the general rise in prices for goods and services. As a result, money loses purchasing power over time. Inflation is important for mortgage borrowers because it has a major impact on the SNB’s interest rate policy and, consequently, indirectly on mortgage rates. If inflation rises sharply, central banks often raise interest rates. If inflation falls, interest rate cuts become more likely.
The key interest rate is the most important interest rate set by the Swiss National Bank (SNB). The SNB uses it to steer monetary policy and influence interest rates in the Swiss money market. If the key interest rate rises, loans and mortgages tend to become more expensive. If the key interest rate falls, financing costs may decrease. There is a particularly close correlation between the SNB key interest rate and effective mortgage rates, especially for SARON mortgages. Learn more here: SNB Interest Rate Decision and Mortgages – Wait and See or Sign the Deal?
Each one is different
Calculate your personalized yield curve
Your personal mortgage interest rate—and thus your individual yield curve—depends on numerous factors. These include, among others:
- Property Type
- Region
- Asset
- Term
On HYPOTHEKE.ch, after entering your personal information, you can view your personalized Mortgage Yield Curve. This allows you to see exactly how much each term costs in your specific situation.
The loan-to-value ratio indicates what percentage of the property’s value can be financed through a mortgage. Example: For a CHF 700,000 Mortgage and a market value of CHF 1,000,000, the loan-to-value ratio is 70 percent. It influences your personal mortgage rating and thus the interest rate as well as, for example, Affordability and Amortization. Learn more here: Maximum Mortgage,first and second mortgages explained