I’m eyeing buying a house, probably in about 2 yrs.
I had a look at an affordability calculator as well as a “free first session” with Moneypark to validate our finances and they look good:
- we can commit cash up to 35% if needed (but why spend so much?)
- we can cash out our 3a solutions (currently in 75-100% equity) or pledge them, or just do this partially, or not at all?
- we can cash out our 2nd pillars or pledge them (with a lot of voluntary buy-in), or just do this partially, or not at all?
Where I’m a bit puzzled is: in what particular order is this considered the smartest?
My thinking is the following, then please correct me if I’m wrong:
- pledge all 3a products to their entirety. If not possible, cash them out to 100% (this was their purpose, really)
- pledge all 2nd pillar products as much as we paid in extra. If not possible, cash out only as much as we paid in extra (this was the purpose of buying in)
- commit the rest in cash until “it’s enough” and not a penny more
As for reaching the 35% obligation in 15 years, I’d want to have it with putting away 3a’s as normal every year as well as use the savings on buy vs rent - and nothing more, ideally.
If the financing institution allowed every possible combination, what would be your thinking?
What if they won’t allow pledging or put much worse conditions against pledging? Would you cash out, and if yes, how much?