What counts as “clean” equity?

Not considered clean are funds that only appear to be equity but are actually repayable or come from non‑verifiable sources. This includes hidden loans from private individuals without a clear contract, short‑term funds that are intended to flow out again immediately after the purchase, or funds subject to legal restrictions. Banks are subject to strict due‑diligence obligations and reject constructions that obscure the origin or finality of funds.

Retirement assets from occupational pension funds and Pillar 3a do not count as “hard” equity for the 10% requirement, but they can be used or pledged as own funds. If such funds are withdrawn, their use is purpose‑bound and taxes may apply depending on the canton. For the bank it is important that 10% of the purchase price comes from non‑pension, freely available funds.

Gifts must also be “clean.” That means they should be documented in writing, given irrevocably and declared as such. For large amounts cantonal tax rules must be observed. Within families it is advisable to clearly define whether the transfer is a genuine gift or an advance inheritance and how any equalization between siblings will be handled.

Those who can prove clean equity benefit from faster credit decisions, better terms and a smoother notary process. It is worthwhile to collect evidence early and avoid ambiguities. Independent mortgage specialists can help prepare the proof of funds to meet bank requirements and align the financing structure with loan‑to‑value, affordability and retirement planning.