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 by the Swiss Federal Housing Office gives a good explanation of the reference interest rate.
Video: The reference mortgage rate: a brief explanation
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 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% and as of 1 September 2025 to 1.25%. You can always find the current reference interest rate here:
https://www.bwo.admin.ch/de/referenzzinssatz
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.
FAQs on the topic of reference interest rate
No. Tenants must request the reduction from their landlord in writing. If no request is made, the rent will remain unchanged.
Yes, landlords must inform tenants about the rent increase in good time using an official form. Key dates are the termination dates and deadlines agreed in the tenancy agreement or the customary local termination dates if these are not specified in the agreement. Please note the instructions for appeals on the rent adjustment form (reverse side).
Yes. All persons who have signed the rental agreement must also sign the reduction request.
In the event of an increase, we will inform you by post about the rent adjustment. You will receive the new payment details in good time before the increase becomes valid.
The formula for the relative method of rent adjustment is based on a model developed by the Federal Office for Housing. If the reference interest rate drops by a quarter of one percent, this will result in a rent reduction of 2.91%. In addition to the reference interest rate, 40% of the inflation rate (National Consumer Price Index) and cost increases may also be passed on to the rent. This can vary depending on the contract and the individual circumstances.
Switzerland’s Federal Office for Housing publishes its reference interest rate quarterly, every 1st March, 1st June, 1st September and 1st December.
An adjustment can only be made based on a change in the reference interest rate if the interest rate of the tenancy agreement or the latest rent adjustment is lower than the currently applicable rate. An adjustment can be made for inflation or cost increases irrespective of the reference interest rate.
No. If tenants have an indexed rental agreement, they can only refer to the rental price index and not to the reference interest rate.
Tenants submit their concerns via the tenant portal myLivit. The request signed by hand by all tenants must be uploaded as a scan or photo.
No, it can vary due to the basis for calculation.
No. Reduction requests submitted by e-mail will not be accepted. Ideally, tenants should submit their reduction request via our digital tenant portal myLivit. The request must be signed by hand by all tenants and uploaded as a scan or photo. We will also accept reduction requests sent to us by post (registered mail or A/B Mail).
Inflation is determined using the National Consumer Price Index. The starting point is the index indicated in the tenancy agreement or as known at the time of the last rent adjustment. This is then compared to the new index.
Cost increases include any increases to costs for the operation, maintenance and management of the rental property. In practice, flat rates are used.
The reference interest rate is an indicator of mortgage interest rates in Switzerland. It is used as a basis for calculating rents. If the reference interest rate drops, tenants are generally entitled to a rent reduction.
There is no fixed time limit; the claim does not expire, so it can be made at any date. The implementation of the adjustment may be postponed to a later date, depending on the date of receipt.
This is based on the rental agreement and the contractually agreed notice periods and dates. An adjustment will take effect on the next regular termination date in compliance with the contractually agreed notice period.
Tenancy law stipulates that the party initiating a change in the rent must be the one to take action.
- If the reference interest rate drops, tenants may request a rent reduction.
- If the reference interest rate goes up, landlords may communicate a rent increase.