You can withdraw your pillar 3a assets to purchase your own property.
Your pillar 3a can be a major help when it comes to making your dream of owning your own home come true, and there are various ways in which your pension assets can be used to purchase real estate (acquisition of owner-occupied residential property).
Withdrawals, i.e. the advance withdrawal of pillar 3a funds, lead to more equity capital and helps you to achieve the minimum of 20% own funds required to take out a mortgage. In addition, the increase in equity capital can reduce the mortgage. The lower the mortgage, the less mortgage interest needs to be paid.
The tax payable on the 3a assets withdrawn must be taken into account. This means that not all of the 3a capital will be available for financing the residential property.
Pillar 3a can be pledged in favour of a mortgage, and thus serves as collateral for the bank. This makes it possible to take out a larger mortgage. In the event of pledging, the capital remains in the pillar 3a account or custody account. The pension assets are only touched when realising pledged property. This occurs when the mortgage interest payments can no longer be made.
The mortgage can be amortised (i.e. repaid) either directly or indirectly.
The form in which the pillar 3a is used to purchase real estate is highly individual and depends on the person’s financial situation. Nevertheless, it is important to know the advantages and disadvantages of the various options available.
Pension assets can also be used for enhancing or maintaining the value of your investments in residential property or to purchase share certificates in a housing cooperative.
Transfer 3a to frankly + CHF 100 voucher* >
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