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Old 26.01.2016, 12:18
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Process for putting Freizügigkeitskonto against mortgage

Before I start I will say that even with my planned action, I've perfectly adequate pension provision!

One of my mortgages with UBS expires at the end of February. I have a vested benefit account (Freizügigkeitskonto) with BLKB. I intend to use that money to pay of the mortgage that is expiring. I've already spoken with UBS about this, and it will be straightforward.

I'm going to BLKB tomorrow, but I wondered if anyone has gone through the process, because I don't know what to expect, and it will be useful to know beforehand. I guess the question is, how will BLKB verify that the money is going to pay off the mortgage? Do I just declare that it will, and they trust me? I've looked at their website and it's not very clear. I do see they'll charge me 216CHF for the privilege!

Also, I heard somewhere that there will be some tax payable for the early draw down; any idea how much that will be?

I'll update this thread with my experience anyway.
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Old 26.01.2016, 12:29
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Re: Process for putting Freizügigkeitskonto against mortgage

The Steuerrechner for Basel-Land calculates the tax due on a pension withdrawal:

http://faiweb08.bl.ch/Steuerberechnu...P-Kap-2007.jsp
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Old 01.02.2016, 07:58
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Re: Process for putting Freizügigkeitskonto against mortgage

Very easy. There's a form that has to be filled in with the IBAN of the account that services the mortgage in the financing bank. A letter is needed from the financing bank confirming that the funds will be used to amortise the mortgage. They took photocopies of our residency permits, and then we signed the form.

Once we get the confirmation letter from UBS, we post the forms and documents to BLKB and they transfer the funds.
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Old 01.02.2016, 08:39
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Re: Process for putting Freizügigkeitskonto against mortgage

Should be easy but expect your account manager to try everything they can to make you not pay your mortgage and tell you how it will make you pay more taxes But regarding these issue it is really low bureaucracy here, sometimes even an call from you account manager can sort things out.
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Old 30.04.2016, 11:21
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Re: Process for putting Freizügigkeitskonto against mortgage

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Should be easy but expect your account manager to try everything they can to make you not pay your mortgage and tell you how it will make you pay more taxes .
My account manager was the one who suggested it.

Anyway - final update. Got 3 bills last week - one for canton, one for federal and one for community taxes. Totals just under 4% of the value of the account. 31 days to pay. :-)
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