Today in Switzerland: A roundup of the latest news on Thursday
Mortgage rates are soaring in Switzerland, homes and apartments fall victim to mold, and other news in our roundup on Thursday.
Mortgages are now twice as expensive as a year ago
A bit of bad news for owners, or prospective buyers, of Swiss properties: they will have to pay more than double of 2022 prices for a 10-year fixed rate mortgage, Moneyland consumer platform reported on Wednesday.
Currently, the average interest rate is 2.54 percent for five-year fixed mortgages and 2.76 percent for 10-year terms. As a comparison, at the beginning of 2022, these rates were 1.01 percent and 1.26 percent, respectively.
This is not exactly a surprising development, as experts had predicted the hike when Switzerland’s central bank (SNB) raised its key rate sharply last year to fight inflation, which, in turn, caused mortgage rates to go up as well.
The upward trend could continue well into 2023, as the SNB’s chief Thomas Jordan said on Monday that another hike is likely, further increasing the current interest rate — and therefore mortgages as well.
READ MORE: What's the outlook for the Swiss property and rental market in 2023?
Switzerland implements EU's new package of sanctions against Russia
The Federal Council announced on Tuesday that it adopted the latest measures introduced on December 16th by the European Union under the ninth package of sanctions.
These sanctions include bans on services in the areas of product testing, advertising, market research, as well as new controls and restrictions on the export of various goods, including those “that contribute to the enhancement of Russian industrial capacity," the Federal Council said.
"In addition, the export ban on goods for the aerospace industry will be extended to include engines for aircraft and drones. Likewise, new investments in the Russian mining sector will be banned.”
Energy crisis contributes to mold in Switzerland’s homes
Tenant associations and sanitation agencies are overwhelmed by an increasing number of cases of mold discovered in Swiss houses and apartments.
This fungal growth that forms and spreads on damp surfaces can cause a variety of respiratory illnesses as well as allergic reactions.
This infestation is caused by lower heating temperatures of indoor spaces, as recommended by the government to save energy, along with poor ventilation.
“Less heating and high humidity increase the risk of mold forming, especially on walls,” according to Roger Frei, a building renovation manager.
“Unfortunately, the [government] campaign does not specify that anyone reducing the heating in their home should ventilate their spaces as well.”
Tenant associations point out that tenants should not try to eliminate the mold themselves, but report it to the landlord by registered letter.
Two Swiss institutes among world’s best international universities
In the new ranking of the Most International Universities in the World in 2023 released by Times Higher Education (THE) on Tuesday, the Federal Polytechnic Institute of Lausanne (EPFL) and Federal Polytechnic Institute of Zurich (ETH) are placed in the second and third place, respectively.
They are the highest-ranked in Europe as well, as the top spot went to University of Hong Kong.
The ranking focuses on “universities with the highest proportion of international students and staff,” THE said.
Both Swiss schools were also ranked highly in THE’s previous surveys of best universities in the world.
If you have any questions about life in Switzerland, ideas for articles or news tips for The Local, please get in touch with us at [email protected]
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Mortgages are now twice as expensive as a year ago
A bit of bad news for owners, or prospective buyers, of Swiss properties: they will have to pay more than double of 2022 prices for a 10-year fixed rate mortgage, Moneyland consumer platform reported on Wednesday.
Currently, the average interest rate is 2.54 percent for five-year fixed mortgages and 2.76 percent for 10-year terms. As a comparison, at the beginning of 2022, these rates were 1.01 percent and 1.26 percent, respectively.
This is not exactly a surprising development, as experts had predicted the hike when Switzerland’s central bank (SNB) raised its key rate sharply last year to fight inflation, which, in turn, caused mortgage rates to go up as well.
The upward trend could continue well into 2023, as the SNB’s chief Thomas Jordan said on Monday that another hike is likely, further increasing the current interest rate — and therefore mortgages as well.
READ MORE: What's the outlook for the Swiss property and rental market in 2023?
Switzerland implements EU's new package of sanctions against Russia
The Federal Council announced on Tuesday that it adopted the latest measures introduced on December 16th by the European Union under the ninth package of sanctions.
These sanctions include bans on services in the areas of product testing, advertising, market research, as well as new controls and restrictions on the export of various goods, including those “that contribute to the enhancement of Russian industrial capacity," the Federal Council said.
"In addition, the export ban on goods for the aerospace industry will be extended to include engines for aircraft and drones. Likewise, new investments in the Russian mining sector will be banned.”
Energy crisis contributes to mold in Switzerland’s homes
Tenant associations and sanitation agencies are overwhelmed by an increasing number of cases of mold discovered in Swiss houses and apartments.
This fungal growth that forms and spreads on damp surfaces can cause a variety of respiratory illnesses as well as allergic reactions.
This infestation is caused by lower heating temperatures of indoor spaces, as recommended by the government to save energy, along with poor ventilation.
“Less heating and high humidity increase the risk of mold forming, especially on walls,” according to Roger Frei, a building renovation manager.
“Unfortunately, the [government] campaign does not specify that anyone reducing the heating in their home should ventilate their spaces as well.”
Tenant associations point out that tenants should not try to eliminate the mold themselves, but report it to the landlord by registered letter.
Two Swiss institutes among world’s best international universities
In the new ranking of the Most International Universities in the World in 2023 released by Times Higher Education (THE) on Tuesday, the Federal Polytechnic Institute of Lausanne (EPFL) and Federal Polytechnic Institute of Zurich (ETH) are placed in the second and third place, respectively.
They are the highest-ranked in Europe as well, as the top spot went to University of Hong Kong.
The ranking focuses on “universities with the highest proportion of international students and staff,” THE said.
Both Swiss schools were also ranked highly in THE’s previous surveys of best universities in the world.
If you have any questions about life in Switzerland, ideas for articles or news tips for The Local, please get in touch with us at [email protected]
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