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Old 30.05.2011, 18:51
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Mortgage on 2nd home

We are looking at buying a holiday home in Valais but to keep renting our primary home in Vaud. I understand we can pledge some of the 20% deposit required for the mortgage from our 2nd pillar, but as a 2nd home is this still possible? I understand this may not be allowed and in fact 40% deposit is required (without any 2nd pillar pledge). We are not married and wonder if it is "normal" to dedicate one property as our primary (the owned place in Valais) and the rented property in Vaud kept as our secondary home? Or to have 2 x primary homes - one in each others name? Any help would be much appreciated! Thanks.
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Old 30.05.2011, 19:20
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Re: Mortgage on 2nd home

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We are looking at buying a holiday home in Valais but to keep renting our primary home in Vaud. I understand we can pledge some of the 20% deposit required for the mortgage from our 2nd pillar, but as a 2nd home is this still possible? I understand this may not be allowed and in fact 40% deposit is required (without any 2nd pillar pledge). We are not married and wonder if it is "normal" to dedicate one property as our primary (the owned place in Valais) and the rented property in Vaud kept as our secondary home? Or to have 2 x primary homes - one in each others name? Any help would be much appreciated! Thanks.
If you are a couple, it is not necessarily advisable to register two separate primary homes as that would create the impression that you are living in separation which might have tax implications. Also, from my understanding it is generally not permitted to dip into second pillar savings to finance a home that isn't your primary residence. Have you talked to your bank? It could be that there is some other way around the problem but that probably depends on your personal situation.
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Old 30.05.2011, 19:23
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Re: Mortgage on 2nd home

we looked into this last year - could not pledge the pillars and needed a 35% deposit for a home that was not the primary residence.
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Old 30.05.2011, 22:37
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Re: Mortgage on 2nd home

Thanks for these replies - both are really helpful. Do all banks tend to offer the same - i.e. 35% deposit on a 2nd home? Or is it likely some will offer different terms, say 25% deposit?
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Old 30.05.2011, 22:50
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Re: Mortgage on 2nd home

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Thanks for these replies - both are really helpful. Do all banks tend to offer the same - i.e. 35% deposit on a 2nd home? Or is it likely some will offer different terms, say 25% deposit?
I believe the basic rules are more or less the same, but different banks may have different ways of interpreting them and some may be prepared to wriggle a bit more than others, so shopping around is definitely not a complete waste of time.
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