Life event
I’m buying a home
Buying property commits your wealth for years. Own funds, mortgage, pensions: each decision deserves calm, careful thought.
The steps to know
- Own funds. Banks generally require a share of own funds, part of which must not come from the 2nd pillar (occupational pension, LPP). Work out what you really have.
- The 2nd pillar: withdrawal or pledge. An early withdrawal reduces your pension benefits. A pledge does not, as long as it is not enforced.
- The third pillar. Your pillar 3a (private pension savings) can be withdrawn for the purchase of your main residence. The withdrawal is taxed separately from your income.
- The mortgage: SARON or fixed rate. SARON (the Swiss franc reference rate) follows the market; a fixed rate stabilises your costs. The choice depends on your budget and your time horizon.
- Building insurance. In the canton of Vaud, buildings must be insured against fire and natural hazards. Water damage requires separate private insurance.
Common mistakes
- Emptying your 2nd pillar to increase your own funds, without measuring the effect on death and disability cover.
- Comparing only the interest rate, without looking at amortisation (repayment) and exit conditions.
- Forgetting the additional costs: property transfer tax, notary, renovation work, maintenance.
What I do for you
I help you structure your financing: how much of your pension savings to use, the type of mortgage, and protecting your family if the unexpected happens. We lay out the figures before you sign anything.
Frequently asked questions
Can I use my 2nd pillar and my pillar 3a at the same time?
Yes, for your main residence. Each withdrawal has consequences for your taxes and your pension: they need to be assessed together.
SARON or fixed rate: how do I choose?
SARON (the Swiss franc reference rate) follows the market: your interest varies. A fixed rate stabilises your costs for a period you choose. Combining the two is also possible. The right choice depends on your budget and how well you tolerate fluctuations.
What is indirect amortisation through pillar 3a?
Instead of repaying the debt directly, you pay into a third pillar pledged to the bank. The debt stays the same, the interest remains deductible, and so do the pillar 3a payments.
In collaboration with Callenium GmbH, a non-tied insurance intermediary.
Planning a purchase? Let’s lay out the figures together.
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