Technically there isn’t a 50/50 split cash /pillars, right? You can only use pillar 2 for up to 10% of the price, and the rest must comes either from your savings or pillar 3a. So in the case of 20% down payment you could use only pillars, 10% pillar 2 and 10% pillar 3a.
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Thank you for the report!
Maybe I missread, but did you say that your existing VIAC 3a funds were withdrawn instead of pedged? Why? For future armortozation you stated clear that you pay in and pledge, but couldn‘t you also pledge your current funds instead of withdrawing?
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Indeed, it would be good solution to just pledge the 3a, but the process would take longer and mortgage would be slightly higher, as well as with current conditions I prefer to keep the money out of the market, so that is why I have just chosen to cash it out. Tax authoties have calculed tax of only about 140 chf for 3a withdrawal, so I decided to take advantage of having the money back in cash, after having 3 years of full tax deductions. Simply personal decision not a recommendation. Alternatively I can put the money back at work though IBKR if needs be.
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Folks, an update straight from VIAC on financing a construction project (but not your own plot):
From now on, the VIAC mortgage is also suitable for construction projects that are handed over turnkey. The prerequisite is simply that the customer makes the down payment in full himself and the actual financing via mortgage therefore only begins with the handover of the key. The construction project is therefore not financed in tranches. Furthermore, the customer bears the risk regarding the down payment, in case something happens to the general or total contractor and the construction is not completed, etc.
Sadly our opportunity went to another buyer (have to blame the RE company here, after asking explicitly if there were others interested in the unit they said we’re the first, didn’t want to take our deposit immediately, save a few days later announcing there was someone else in line before us, wtf…), but could be of help for others.
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that’s sad!
IMHO in Swiss RE market, there is no such thing as “first come, first served”. Money is the only thing that matters; one can very easy “skip the line” by just paying more 
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Wonder why they didn’t come back and ask you to bid more?
With the apartment I’ve bought it was clearly a case of racism, the owner said: “I rather sell it to a Swiss guy than to a foreigner.”
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Had that feeling also for renting in some cases.
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What the …, I contacted them a week ago about that and they said no new construction at all. I then had to close a deal somewhere else at 1.43% a few days later due to a deadline on the offer. Pretty disappointing support …
Why not go for Saron and then change banks after it’s finished?
OT, but it is a new construction project, so prices are fixed, no bid. Feels to me there was a better buyer? Weird… anyway, not racism, but perhaps they wanted a different “family” profile.
Re. renting: most definitely, not a feeling, a certainty 
Sorry about that, I asked them in chat two weeks ago specifically mentioning that it’s a new project with multiple units and got the same negative answer, but they promised to have a look into it and I was very positively surprised when I got that answer today. Perhaps it’s a really fresh news, I don’t think it has to do with support or specific cases but rather the framework agreement they work under with WIR.
In our case it was proposed by the RE with 20% at the beginning of the construction and 80% at delivery (turnkey), which still has a point open because Pillar 3a is cash-equivalent so it would be in the first 20% but then how do I amortize if VIAC enters only afterwards? Anyways, for now it’s gone and back to the search…
As we’re probably going to buy an apartment for 780k (just a couple of open questions left), I started communication with Viac.
I could get slightly better offers with my own bank, but me and my GF have 56k at Viac in total. I would love to give them that als collateral and my ValuePension 2nd pillar + pension fund aswell. So ~91% loan to value ratio. And keep paying into my 3rd pillar accounts at Viac.
We already did the Quick Check. Waiting for the missing documents from the seller and then lets see. I hope the self-employment of my GF won’t be an issue.
I will keep you guys updated.
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You’re on a roll this year, first a Tesla now an apartment. 
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Coming next - a kid?! 
Well, the Kindergarden is right around the corner (50m). I’ll check:
- Own bank
- Viac
- ZKB (Frankly 3a)
My only issue with Viac would be: 5 years contract with Saron.
If they finance you I bet that you will have the best deal there. A friend of mine got his mortgage with his employer bank at 0.19% for 10 years.
Can you share some details? square meters, location (canton/town)?
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Well mine doesn’t have such offers, 0.50% Saron and currently somewhere around 1.70% for 10 years. I would go for Saron anyway. Btw ZKB replied and the minimum interest for Saron is 0.85% lol. So they are already out of the picture.
- 125 m2
- 15 m2 balcony
- 4.5 rooms
- bathroom with bathtub
- bathroom with shower
- 2011 built
- Stone floor in the whole apartment
- Minergie with heatpump, floor heating and ventilation system
- Electric shutters for all windows including sun shield for the balcony
- Glass fiber internet
- South of Aarau, 30km/h zone
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Interessted to hear about VIAC’s offer.
FYI, you employer could raise the rates in case you leave the firm, and revoke the employee discount to some extent, something to consider. The buying price sounds very reasonable.
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Sounds pretty amazing given the specs. You might need to renovate a little given the age (e.g. after 10-15 years the appliances might be due)
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@kane
That’s why I want to go with Saron. To stay flexible.
@MrCheese
I would paint the whole apartment myself with my father (he is a painter since 30 years) and otherwise the rest is fine. Might replace the cooking plate.
Only downside: They haven’t started with an Erneuerungsfonds yet. So we have to assume that we need to invest 10-20k in the next couple of years.
Btw I made my own evaluation of the apartment and I’m pretty sure you could sell it for 900k within 6-9 months. Our fair value would be at 880k.
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