Pillar 3a
Tax-advantaged tied pension savings, usable for mortgage and tax-deductible.
Pillar 3a is the tied individual pension scheme in Switzerland. Contributions are deductible from taxable income (max. CHF 7,258 in 2026 for employees with a 2nd pillar).
For mortgages, pillar 3a can be used in two ways: 1. Early withdrawal: funds are paid as equity. Subject to withdrawal tax. 2. Pledging: the 3a account is pledged to the bank. Funds remain invested and contributions remain deductible.
Pillar 3a is particularly useful for indirect amortisation: instead of repaying the mortgage directly, you contribute to a pledged 3a, which maintains mortgage interest deductibility and provides an additional deduction for 3a contributions.
Related terms
Pledge
Using assets (pillar 3a, securities) as collateral for the mortgage.
Amortisation
Gradual repayment of the mortgage principal.
Equity / Down payment
Personal funds required for a property purchase.
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