Own funds: 2nd pillar, 3rd pillar, gifts… where can the deposit come from?

Gathering 20% of the price is not always easy. Fortunately several sources are accepted, with precise rules.

Possible sources

• Personal savings: the simplest, and essential for the minimum 10% "cash" portion;
• 3rd pillar (3a): early withdrawal possible to buy owner-occupied housing for your own use;
• 2nd pillar (occupational pension): withdrawal or pledge under the home-ownership promotion scheme, generally from CHF 20,000 for a withdrawal, with limits from age 50;
• Gift, advance on inheritance, family loan: accepted by banks with clear documents.

Points of attention

• A 2nd-pillar or 3a withdrawal is taxed separately at a reduced rate and lowers your pension benefits (including death and disability cover);
• a pledge avoids the exit tax but can limit liquidity;
• 2nd-pillar funds do not count towards the 10% "cash".

A pension review before buying avoids weakening your cover. It is also the moment to check your insurance.

General information; taxation and conditions vary by canton and pension institution.