Promise of payment / Zahlungsversprechen and 2nd pillar withdraw

Real Estate
1

Hello guys :slight_smile:
This is my first post here, I tried to check if similar discussions were already opened by someone else but looks like this is not the case.

Long story short, I found an apartment I want to buy that will be ready in January 2027.

The purchase flow is the following:

  • 20K CHF reservation fee
  • 10% of the total amount (let’s say 100.000 CHF) needs to be paid at the signing agreement with the notary, 2-3 months after the reservation is paid
  • In 2027, the remaining 90% - 20k reservation needs to be paid and the mortgage starts

They want, at the point 2, a promise of payment from my bank / Zahlungsversprechen regarding the other 90% missing.

However, my question is simple, can I tell the banks I am discussing with that I will use my second pillar only when the mortgage needs to be issued in 2027? In this way I can withdraw waaay more than now, and the return on my 2nd pillar are horrible anyway…

If this is the case, would they be ok in having less cash on the bank account needed to issue the promise of payment? Especially because only 10% is needed in the second step.

What I mean is:

  • Imagine that what I need to pay is 20% of the value, let’s say - 200.000 CHF
  • I pay the 20k reservation fee → only 180K should be available at my bank at the signing date
  • Then I give to the bank I choose 150K CHF cash, with the promise of payment from my second pillar pension fund for 2027

Would this work? If not, how does the promise of payment works if you do not have the missing part for the 20% cash? The pension fund will not let me withdraw the amount now, if the apartment is ready in 2 years..

Share your experience if you can :slight_smile:

TLDR: The 20% downpayment for a new apartment includes a 2nd pillar withdraw and I want to understand how the bank can give me a Promise of payment / Zahlungsversprechen if I can withdraw the money on my second pillar if the construction is not completed

2

I would start my conversation with the bank with “how can we structure this?”

From experience, they usually need some collateral to issue a payment promise. This could be your pledged pension fund, your future salary, a guarantee from a family member or any other assets you might own.

1 Like
3

Thanks for the answer!
“Usually they need SOME collateral”
Here is my point, do they need the full collateral even if I have to pay only 10% to the constructor during the first notary appointment?

Because if the full collateral I’m going to put in once the mortgage starts is not yeat available I wonder how it usually works. Meaning, I’m not even sure I can pledge or withdraw the second pillar at this point however I “need it” once the mortgage starts to be compliant with the 20% required

4

Each bank may have a different approach, therefore getting your answer from the horse’s mouth might be the best strategy. Talk to a few of them.

BTW: if you don’t have enough now, what makes you sure you will have the capital in the future? Is your job 100% secure?

1 Like
5

Yes it is, I work for a state owned company (sort of), and I have 3 months of notice if they fire me. Backup options available in case.
I do have the assets today btw, but the amount in my 2nd pillar that I would withdraw is higher and this would allow me to use less cash. If they want me to “freeze” all my assets I have the 20% needed today, no problem at all.

I am just trying to negotiate the fact that I will withdraw later and use less cash