Pensions and home ownership

The state counts owning a home as a retirement asset. This means you can use assets from pillar 3a to finance your own home even before you reach OASI retirement age – but only if you move into the apartment or house yourself.

You have two options when it comes to financing:

• You pledge your retirement capital as collateral for your mortgage.
• You withdraw your retirement capital and thereby increase your equity for the purchase of a residential property.

We would be happy to show you in detail how your financing plan could look.

You can also use your occupational pension fund money to buy owner-occupied residential property or repay a mortgage. There are two ways you can do this:

• You pledge your retirement capital as collateral for your mortgage.
• You withdraw your retirement capital and thereby increase your equity for the purchase of a residential property.

We would be happy to show you in detail how your financing plan could look.

Direct amortization

With direct amortization, you reduce the mortgage amount annually by the amount agreed in the loan agreement. This reduces your debt and the annual mortgage interest to be paid.

Advantage:

• Decreasing mortgage debt and interest charges

Disadvantage:

• No additional tax savings

Indirect amortization

With indirect amortization, the mortgage amount does not change. You pay the amortization amount into your 3a account annually and thus reduce your mortgage at once after 15 years at the latest.

Advantages:

• Tax savings from depositing the amortization amount in UBS Fisca account (pillar 3a)
• Tax-free interest income on capital in pillar 3a

Disadvantage: Mortgage amount does not change and must be charged interest in its entirety