Not enough down payment to buy? Your 3rd pillar can make the difference

The problem: the 20% equity barrier

To finance a property in Switzerland, the bank requires at least 20% equity. On an apartment priced at CHF 800,000, that is CHF 160,000 to raise before even discussing monthly payments. This barrier, more than income, is what blocks most buyers.

A crucial and often misunderstood point: at least half of this down payment, i.e. 10% of the price, must be « hard » equity — real savings, excluding the 2nd pillar. This is precisely where the 3rd pillar comes in.

The solution: mobilise your 3rd pillar for the purchase

The law allows the use of pillar 3a to finance the acquisition of your main residence (not a second home or a rental property). You can do this in two ways, with very different consequences.

Option 1: early withdrawal

You withdraw the capital from your 3a and inject it directly into your down payment. It is simple and increases your hard equity. In return, the withdrawn capital is taxed at the time of withdrawal (at a reduced rate), and your retirement savings start again from zero.

Option 2: pledging

You leave the capital in your 3rd pillar and pledge it as collateral to the bank. You keep your savings, they continue to grow, and you retain the tax advantage of your contributions. Pledging increases the amount borrowed but preserves your provision: often the smarter choice when you are young.

What it means in practice

*Depending on the property price, your available 3rd pillar capital and the amount already saved elsewhere. The simulator estimates your capacity in two minutes.

The trap to avoid: emptying your provision without a strategy

Withdrawing your entire 3rd pillar to buy may seem obvious, but it has a cost: tax on withdrawal, loss of provision cover, and a restart of your savings. Many buyers combine both approaches — a partial withdrawal to reach the hard equity, a pledge for the rest. Well constructed, this combination minimises tax and preserves your future.