At this point we show you what is involved in real estate financing, what he balance be-tween equity and debt capital should be and how you can raise enough equity to pur-chase your dream home.

Which financing options you can take advantage of

In order to fulfil your dream of owning your own home, you need the right financing mix. Home ownership financing always comprises both equity and debt capital. 

As a rule of thumb, 20% of your home is financed from your own funds and 80% from debt capital, i.e. a mortgage. 


The composition of your equity capital

For example, you can use your bank assets or a securities account as equity capital. Often, however, such amounts are not enough to buy a property. Then you can consider additional funds, which also count as equity:

There are two ways you can use your pension fund assets to buy your own home:

  • Advance withdrawal: Your pension certificate shows you how much money you can withdraw from your pension fund. One disadvantage here, however, is that the prepayment reduces your retirement capital. In addition, pension funds generally also reduce death and disability benefits. You can offset this with private risk protection.
  • Pledge: If you pledge your pension fund assets or 3rd pillar pension assets,your insurance cover and retirement capital remain unrestricted. Instead, the interest burden increases.

Important note: when planning your financing, remember that you can withdraw up to 10% of the lending value from the pension fund. If you are over 50, you can withdraw up to half of your current pension plan savings or the exact amount of your pension plan savings when you reach your 50th birthday.

Tip: We normally recommend pledging as this method does not jeopardise your financial security and self-determination in old age. 

Pillar 3a (tax-qualified provisions)
Within the framework of home ownership encouragement (WEF), it is possible to use funds from your
retirement provisions to purchase your own home. You can make use of tax-qualified private provisions, i.e. pillar 3a.

You can use 3rd pillar capital to finance owner-occupied residential property, to renovate or refurbish your own home and to amortise an existing mortgage. You can choose to make an advance withdrawal or pledge your pillar 3a assets for your home. Please note, however, that you may only use pillar 3a once every five years for home ownership. Spouses or registered partners are, however, considered individually in this
regulation, as they are entitled to their capital independently of each other.

Pillar 3b (non tax-qualified provisions)
You can use pillar 3b as collateral when you take out a mortgage. Pension products in this area include life insurance or investment products.

Another way for you to raise your equity isthrough an advancement of inheritance. With such an advancement of inheritance, your parents provide you with a certain amount of money during their lifetime.
By law, this amount must be set off against the subsequent inheritance (offset obligation).


What counts as debt capital

A mortgage is considered to be debt capital. Swiss Life offers you various mortgage options from different
providers, precisely tailored to your requirements.

How we help you to find the right financing

We advise you comprehensively on your way to the right financing and support you from the initial planning to your own four walls and beyond. This has many advantages for you:

  • We can offer you customised budget, pension and financial advice to help you realise your dream of owning your own home more quickly.
  • We show you how you can accumulate your equity capital in a tax-optimised manner over the long term.
  • We take a comprehensive look at your personal situation and tailor a financing concept for you.
  • Thanks to the SwissFEX mortgage platform, we can show you a wide range of offers from different providers. Suitable offers are compared transparently and in real time.
  • We make it possible for you to access mortgages on preferential terms that you would not otherwise have access to.

We will be pleased to answer your questions.

Monday-Friday from 9 a.m. to 6 p.m.

Free consultation

Our experts at Swiss Life and Swiss Life Select would be happy to advise you on the best interest rate for your mortgage – at a location of your choice or online by video

Our products for your asset accumulation

We offer a variety of saving solutions for your personal asset accumulation – with or without coverage. You determine the amount of security yourself.

Additional articles of interest


Take out a mortgage: all important information and conditions at a glance

Read more


Prepayment of inheritance: the key questions and answers

Read more


Pillar 3a for home ownership: key questions & answers

Read more