Swiss Mortgage Market Tops 1.3 Trillion Francs Amid Squeezed Margins

Switzerland's mortgage market has crossed a significant milestone, exceeding 1,300 billion francs in outstanding loans for the first time in 2025. This achievement follows two years of more moderate growth, with the market expanding by 3.1% in 2025, a pace slightly above the 3% annual average of the past decade. Over ten years, the market has swelled by 339 billion francs, representing a 35% increase.

The recent acceleration is driven by several factors, including persistently low interest rates, climbing real estate prices, and a notable resurgence in the residential market. After a relatively subdued period, the sector has become considerably more dynamic. An estimated 44,800 real estate transactions financed by mortgages were recorded in 2025, a substantial 48% increase compared to 2024.

However, this expansion comes as lenders face shrinking profit margins. The report by broker MoneyPark highlights that while the market is growing, the profitability for mortgage providers is diminishing, suggesting increased competition and potentially higher operational costs within the sector.