Reference interest rate
The Swiss reference interest rate is a benchmark used to assess certain rent increases or reductions in residential and business leases.
The reference interest rate is a nationwide benchmark published for Swiss tenancy law and derived from mortgage interest conditions. It matters because many rents are assessed partly by reference to financing costs: a rise may support a rent increase, while a fall may support a tenant’s request for reduction, subject to other cost and yield factors. It is not the tenant’s personal mortgage rate and does not automatically change rent. Formal notice and challenge rules remain important.