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Glossary

Advance Withdrawal for Home Ownership

Advance Withdrawal for Home Ownership (WEF, Wohneigentumsförderung) refers to the early withdrawal of pension capital from Pillar 3a to acquire, build, or repay mortgages on owner-occupied residential property. The withdrawal is tied to owner-occupancy and is subject to separate taxation at a reduced pension provision tax rate.

At a glance

01

Legal basis: Federal Act on the Promotion of Home Ownership using Pension Fund Assets and Art. 3 para. 3 BVV 3.

02

An Advance Withdrawal for Home Ownership is possible once every five years; alternatively, the capital may be pledged as collateral without an actual withdrawal.

03

If owner-occupancy ceases (property is sold), the withdrawn amount must in principle be repaid into Pillar 3a.

Frequently asked questions

An Advance Withdrawal for Home Ownership may be used for the acquisition, construction, or amortisation of mortgages on owner-occupied residential property. Whether the total pension capital is sufficient depends on the accumulated amount and the mortgage size. Note that an early withdrawal reduces the retirement capital available later.

Part of the topic

Säule 3a

Sources: Bundesamt für Sozialversicherungen (BSV) · Systematische Rechtssammlung (fedlex)