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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

  • Legal basis: Art. 3 para. 3 BVV 3. What counts as residential property, participations and owner-occupancy follows Art. 2 to 4 of the Ordinance on the Promotion of Home Ownership using Occupational Pension Assets (WEFV).
  • An Advance Withdrawal for Home Ownership is possible once every five years; alternatively, the capital may be pledged as collateral without an actual withdrawal (Art. 4 para. 2 BVV 3).
  • If owner-occupancy ceases (property is sold), the withdrawn amount must in principle be repaid into Pillar 3a.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. An early withdrawal reduces the capital available later for retirement.

Part of the topic

Pillar 3a

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

This entry is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.