The Galenica Pension Fund offers its participants second mortgages in order to finance residential property.
Residential properties that qualify for financing are single-family homes and owner-occupied properties in Switzerland. Holiday flats or holiday homes in Switzerland will only be financed if no other residential property is owned. The participant must live in the residential property.
A loan will be granted if borrowed funds account for no more than 80% of the investment costs, sales price or market value. If an early withdrawal pursuant to WEFV is requested to finance the residential property, the loan is automatically reduced to 70% of the value. The remaining financing must come from the participant's own funds.
The mortgages are secured against real security. The ability to make interest payments and any annual principal repayments must be ensured on the basis of your earnings.
Mortgage loans are subject to interest. Interest and principal repayments must be made every six months. The interest rate is based on the interest rate that the Berner Kantonalbank (BEKB) sets as the lower limit for existing first mortgages.
There is no fixed regulation governing principal repayments for second mortgages granted by the Galenica Pension Fund. These are agreed on a case-by-case basis. If so desired, the principal repayments can be handled indirectly via a tax-advantageous, restricted retirement savings account (pillar 3a).
The loan agreement can be terminated by either party at the end of each month with a three-month notice period. Upon leaving the Galenica Pension Fund, the outstanding mortgage amount must be repaid within three months. In the event that the residential property is sold, the mortgage must be repaid when the benefits and risks associated with the property pass to the new owner.