I do not get why you would not touch 3rd pillar. This is an easy way to realise the tax advantage and further allows you to split in more than 5 withdrawals over your lifetime, which will reduce your total tax burden on the withdrawals (the only minor downside: the former 3a money would no longer be excluded from wealthtax).
One may also use the 3A to repay a mortgage at any time so you are not bound to using it only at inception. Also pledging your accounts (which counts as core funds) allows you to increase the size of the mortgage while keeping your money invested and benifiting from the interest tax deductions all together.
Thank you very much for all of your answers.
Is it correct that with a indirect amortization, the bank checks after 15 years how much is the apartment worth and take in your 3rd pillar the necessary amount to have the remaining 67% ?
I believe that if you have it in other source you can decide whether is the pillar 3 or other source.
But yes, there is a rule to have paid X amount before retirement.(there is a comment from Cortana above)
Does any one have experience demonstrating whether the rates obtained by Moneypark (or any advisor) is better or worse than the ones you get when negotiating alone ?
I would consider paying 500 chf for saving my time and getting a few offers but not if I get worse offers.
They say they work with 100 different banks, pension funds and insurances, but count each Raffeisen branch individually lol. So in reality they don’t check that many institutions. Plus the MP employer won’t contact all the banks and focus on those he has good relationships with.
I know this because one of my best friends works at Moneypark.
Thank you, very valuable insight.
Thanks for this post. Does anyone know if banks accept pledge of 3rd pillar for the 10% as opposed to withdrawl and cash payment? I asked UBS a while back and the advisor said that with them it had to be withdrawl and cash payment. I am not convinced the advisor truly knew for sure
I did a simulation with UBS recently and it included a max mortgage simulation for which I only had to provide 16% cash instead of 20% the missing 4% being pledged from the 3rd pillar so yes it is possible but it all depends on your capacity to pay the interests of the mortgage at 5%. If you pledge with UBS though you have to have the 3rd pillar with them, they do not accept external 3rd pillars as pledge.
I asked a similar question here recently, maybe it helps.
This is possible and I am using the same approach (pledged existing Pillar 3A accounts) for my mortgage with UBS.