Pension funds are withdrawing from the housing market

The days of low interest rates are over. Even before the Swiss National Bank (SNB) surprisingly increased its key interest rate in mid-June, mortgage interest rates in Switzerland had clearly begun to rise. However, banks in Germany are not yet feeling the effects of a slowdown in the mortgage business, according to a survey by the AWP news agency.

Raiffeisen is particularly in focus. The banking group grants almost every fifth mortgage in Switzerland. There is still nothing to indicate a major decline in mortgage demand, she said when asked. The dream of owning a home seems to be intact even after the rise in interest rates – at least for those who can afford it.

Demand remains high

It sounds similar at other large institutions, namely the Zürcher Kantonalbank (ZKB), the Basler Kantonalbank (BKB) and the Hypothekarbank Lenzburg. He has not observed a slowdown in business that is directly related to the SNB decision, says Markus Stocker, head of financing business at ZKB, for example.

What has changed, however, are the runtimes. After the interest rates for long-term mortgages have increased in recent weeks, customers are now increasingly asking for shorter maturities because they have become cheaper, says Rolf Bienenblust. He sits on the management board of Hypothekarbank Lenzburg and is responsible for risk control.

Fixed-rate mortgages less popular