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Financing

What counts as “clean” equity?

“Clean” equity means funds with a clear, legal origin that are irrevocably available to the buyer and do not have to be repaid. In mortgage practice this includes cash and savings balances, securities, legitimate gifts or advance inheritances, and surrender values of life insurance policies. Crucial are uninterrupted proofs such as bank statements, gift agreements and payment receipts.

16.12.2025

2 min

Financing
How can parental assistance / gifts be used for purchasing property?

Parental assistance can take the form of a gift, an inheritance advance (advance on an inheritance), or an interest-free / low-interest loan. Each option has different effects on available equity, taxes, affordability and equal treatment within the family. It is crucial to document the support clearly and be transparent with the bank and the authorities.

16.12.2025

2 min

Financing
How can Pillar 3a be used for buying property?

Pillar 3a can support a property purchase in two ways: by withdrawal (Bezug) or by pledging the retirement savings (Verpfändung). Both routes are only permitted for owner-occupied residential property and are subject to specific rules. Used correctly, 3a improves your equity base, lowers the loan‑to‑value ratio and can stabilise affordability.

16.12.2025

2 min

Frau Wohnung Haus Einzug Immobilie Immobilienkauf Hypothekenvergleich Hypothek
Financing
How can pension fund assets be used to buy property?

Pension fund assets (pillar 2) can be used within the framework of homeownership promotion (WEF) for owner-occupied residential property — either as a withdrawal (Vorbezug) or by pledging (Verpfändung). Both routes improve financing but affect pensions, taxes and loan conditions very differently. The aim is to strengthen own funds, reduce the loan-to-value (LTV), or secure affordability without unnecessarily weakening retirement provision.

16.12.2025

2 min

Person, die Dokumente mit Taschenrechner und Laptop überprüft, symbolisiert die Finanzierungsplanung von Eigenmitteln und Eigenkapital
Financing

What counts as Eigenmittel vs. Eigenkapital?

In everyday language “Eigenmittel” and “Eigenkapital” are often used interchangeably, but in banking practice there are nuances. Eigenmittel are all funds you contribute when acquiring a property: cash, savings, securities, gifts, advance inheritances and — with restrictions — pension assets from the occupational pension or pillar 3a. They, together with the mortgage, form the financing basis of the purchase and determine the loan-to-value (Belehnung).

16.12.2025

2 min