The imputed rental value will be abolished as of the 2029 tax year. One in four mortgages could be reduced or fully paid off. The annual mortgage growth rate of around 3% would be reduced by these payoffs, causing the mortgage market to grow more slowly in the coming years.

MoneyPark and Helvetia each conducted a representative survey before and after the referendum on the abolition of the imputed rental value, asking 450 homeowners aged 25 and older in German- and French-speaking Switzerland about the potential impacts. About one-third (34%) of respondents had expressed the intention before the vote to partially or fully pay down their mortgage should the imputed rental value be abolished. Now that the abolition was approved in the referendum on September 28, 2025, that intention has dropped to 27%, but remains substantial. One in four respondents with a mortgage plans to pay off at least part of it. At the same time, 29% are opposed to doing so, which is nearly double the figure from the survey conducted before the vote.

Repayment intentions following the abolition are on the decline

“While the mortgage holders surveyed are no longer quite as eager to pay off their mortgages as they were before the vote on the abolition of the imputed rental value, one in four people could still reduce or fully pay off their mortgage,” said Lukas Vogt, CEO of MoneyPark.

However, repayment intentions have fallen only in German-speaking Switzerland (36% vs. 25%), while slightly more people in French-speaking Switzerland now wish to pay off their mortgages compared to before the vote (27% vs. 31%). Currently, 9% of respondents in French-speaking Switzerland are considering full repayment, and another 22% are considering partial repayment. In German-speaking Switzerland, the figures are significantly lower at 5% (full repayment) and 20% (partial repayment).

Growth in the mortgage market is likely to slow

If the homeowners surveyed put their intentions into action, MoneyPark’s calculations suggest that CHF 30 to 80 billion in mortgage volume could be paid off in the first five years following the abolition of the imputed rental value. This would have significant consequences for the mortgage market. The average annual growth of around 3%—which would currently amount to just under CHF 40 billion—would be at least partially offset by these repayments, causing the mortgage market to grow noticeably more slowly in the coming years.

This trend could influence banks’ lending practices

Depending on the sources from which mortgage holders repay their mortgages, this could also have a further impact on bank lending. “If repayments are made from liquid assets, banks lose precisely those deposits that they use to refinance their mortgages,” says Lukas Vogt,

CEO of MoneyPark. Mortgage borrowers aged 30 to 60 are particularly willing to repay their loans. On the other hand, current retirees (aged 66 and older) and those approaching retirement (aged 61–65)—who stand to benefit the most from the elimination of the imputed rental value—are particularly capable of making early repayments. As last year’s study shows, they could use their existing liquid assets to cut their outstanding mortgage balance in half.

At present, no increase in repayments is yet evident

A look at the Swiss National Bank’s latest market figures reveals no signs of a slowdown due to increased amortization. On the contrary: driven by low interest rates, the volume of new mortgages continues to rise, with the market currently growing at the long-term average of 3%. “Even among our customers who are renewing their mortgages, there are still more increases in loan amounts than prepayments,” says Lukas Vogt.

Low interest rates are (still) deterring many from making prepayments

The main reason for the current reluctance is low mortgage rates. Half of the homeowners surveyed who oppose paying down their mortgage cite low interest rates as their reason (51%). The argument that paying down the mortgage isn’t worth it due to low interest rates resonates significantly more in German-speaking Switzerland (54%) than in French-speaking Switzerland (39%). And the argument that it’s more worthwhile to invest the money than to pay down the mortgage also finds significantly more support in German-speaking Switzerland (26%) than in French-speaking Switzerland (9%). “If mortgage interest rates rise, mortgage holders are likely to consider making additional payments more often,” says Lukas Vogt.