Rents: the mortgage reference rate stays at 1.25%

Updated October 2026 · by Dr Pier Paolo Gori

On 1 September 2026 the Federal Office for Housing (FOH) announced that the mortgage reference rate for tenancy agreements stays at 1.25%. The average mortgage interest rate, calculated as at 30 June 2026, is 1.31%, unchanged from the previous quarter.

What it means for rents

• Rents already based on 1.25%: the rate has not changed since 2 September 2025, so on its own it gives no right to an increase or a reduction.

• Rents based on 1.5% or more: according to the FOH, the right to request a reduction generally remains.

• Other factors: rents may also change with inflation (up to 40% of the rise in the consumer price index) and with maintenance and running costs. Indexed or staggered rents follow their own rules.

When it can change

The rate stays at 1.25% until the average rate falls below 1.13% or rises above 1.37%. The next publication is scheduled for 1 December 2026.

More: “Condominium ownership in Ticino: how does it work?”.

Sources: FOH, 1.9.2026 – The mortgage reference rate remains at 1.25% (Italian)