Swiss banks are still the largest providers of mortgages, but other institutions are gaining importance and expanding their market share at breakneck speed.

The growth of the Swiss mortgage market is continuing despite the rise in interest rates, a study (in German) by the Swiss real estate service provider MoneyPark shows. The key findings of this survey are:

  • The Swiss mortgage market grew by 3.4 percent (39 billion Swiss francs) to 1.2 trillion in 2022.
  • The big winners are the banks, excluding major banks which remain at the previous year's level.
  • Insurance companies are among the losers, intentionally giving up mortgage volume of 3 percent. 
  • Pension funds remain the growth champions. After 10 percent growth the previous year, pension funds grew significantly faster than the market in 2022 at 5.8 percent.
  • The annual volume placed by intermediaries increased from less than a billion francs in 2016 to more than 13 billion in 2022. In the past year alone, growth was 23 percent. 
  • With an annual mortgage volume of around 212 billion placed, the share of mortgage brokers is over 6 percent.

All banks together remained the dominant players with a 95 percent share of the Swiss mortgage market, but there were major differences within this group. The cantonal banks have grown by almost 35 percent to 114 billion francs since 2015, accounting for about half of the market growth. Last year they continued their unhindered growth of 5.1 percent which is likely to continue in 2023, according to the study.

UBS and Credit Suisse showed the lowest growth in volume compared to all other banks in 2021 and repeated that last year, their growth essentially stopping. With the integration of Credit Suisse into UBS, observers expect a further decline of around 2 percent this year.

Pension Funds are Growth Champions

Meanwhile, pension funds nearly doubled their volume compared to 2015, making them the growth champions of recent years. Even with that impressive performance they still don't get beyond a market share of 2 percent.

As the study shows, the growth is likely to be due in particular to the intermediaries giving them access to mortgages.

Boom of Mediation Platforms

The annual volume placed by brokers has increased from less than one billion francs in 2016 to more than 13 billion last year. In the past year alone, growth was 23 percent.

With a mortgage volume of around 212 billion francs placed each year consisting of an estimated 173 billion in extensions and 39 billion in new financing, the proportion of mortgage brokers is over six percent. There is a veritable boom in new mediation platforms, with more than 25 businesses catering to them.