Best product for indirect amortization?

Real Estate
1

Hi all,

I’m about to sign a swiss mortgage, but trying to get my head around the best way to amortize it.

Ideally, I’d like to use indirect amortization by investing into some passive index fund. However I can’t use my third pillar since the mortgage is for a holiday home. The bank is rather proposing us to put it into a 3b product which is “swiss life dynamic elements duo” which seems to have a traditional insurance component and a stock based returns component.

I’d prefer to pay a regular insurance policy to cover the risk, and then separately make the amortization indirectly in a low cost ETF or fund.

Any advice on this?

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Don’t.

Indirect amortization usually implies paying into a 3a account. Never heard about indirect amortization with a taxable securities account. You can go with a direct amortization, gradually repaying your debt. Otherwise indirect amortization with UBS 3a account and Vitainvest Passive 100 fund seems to be reasonable.

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In my case, the bank (Migros) asked for indirect amortization using an insurance of my choice.
I went with Generali based on this comparison

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Did this. And used separately life insurance policy (approx 300 chf a year for 500 coverage).

Good idea to stay away from insurance policies mixed with investments. Best to separate, beside cost advantage you can exit insurance any time if you no longer need coverage…

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I would like to revive this topic to Update the best indirect 3A amortisation

Off course on top of the list you’ve got VIAC financed by WIR Bank

SARON + 0.65%
Index funds up to 99% equities with 0.41% TER

But depending on the situation it could necessary to have a physical bank and it might be even cheaper?!

I spotted some options:

Raiffeisen with a “quasi-index” fund with 95% equities including 50%CH
TER 0.75% do I miss some fees?!
Apparently they are no others management fees
This fund is relatively new and was started last year

With good negotiation I’ve heard stories about SARON + 0.5% with them but without it comes at 0.8%!

UBS with their Vitainvest 100
Custody fees 0.5% + 0.25% product fees

CIC bank also offer a 3A @0.5% and the UBS Vitainvest or Swisscanto (CH) IPF III Vorsorge Fonds 95 Passiv VT.
I’ll try to know their SARON margin rate :wink:

Others idea with low fees? Anybody already have been able to pledge a Finpension account?

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hello, bumping this thread again in case anyone heard of other indirect amortization products?
seems like the rates have gone up again after BASEL III came in at the start of 2025.

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