Did you know?

The 20% Rule: To obtain a loan, you generally need to provide 20% of the purchase price in equity, with at least 10% coming from sources other than your 2nd pillar.

The Theoretical Rate: Banks do not use the current market rate for calculations, but a theoretical rate (often 5%) to ensure you can afford payments even if rates rise.

The 33% Ratio: Your housing costs (interest, amortization, and maintenance) must not exceed one-third of your gross annual income.

Pledging: In Switzerland, it is often more advantageous not to repay your 2nd-tier debt directly but to use indirect amortization via a pledged 3rd pillar (A or B).

Maximum Tax Benefits: Your debt remains stable, as do your deductible interests. You save on taxes every year.

Tied Pension Plan: Funds paid into your 3A are deductible from your taxable income (up to the annual limit).

Prudent Savings: At the end of the loan, the accumulated capital pays off the debt. Any surplus belongs to you.

Risk Guarantee: The contract protects your family in case of hardship (death or disability).

3rd Pillar B (Free): Unlike the 3A, it is not capped and offers great flexibility if you have already reached your tax deduction limit.

The Leverage Effect: By investing your amortization in investment funds within the 3rd pillar, you can aim for a return higher than your mortgage rate.

Important Note: This calculation is a mathematical projection and does not constitute personalized financial advice.