Your mortgage deposit should not consume your emergency reserve
Distinguish approved equity, purchase expenses and cash that keeps the household safe after completion.
Three piles of money
A purchase needs more than the amount shown as equity in a financing calculator. Separate accepted equity, transaction costs and cash retained after completion. A lender may accept money for the deposit without assessing every future household expense. Do not use the same savings balance in all three columns. Ask for a funds-at-completion statement and maintain a reserve that can cover repairs, income interruptions and ordinary bills after the notarial transaction is finished.
Confirm which money is accepted
List savings, gifts, proceeds from another sale and pension-related funds with their availability and conditions. A promised gift or expected sale is not cash already cleared. Ask the lender how it treats each source and which evidence it needs. For pension assets, obtain separate eligibility and benefit-impact confirmation. Minimum standards are a regulatory floor, not a guarantee that your proposed lender accepts every source or the desired loan-to-value ratio for your property and income profile.
Hypothetical completion budget
Imagine CHF 200,000 available and CHF 180,000 committed as equity. A further CHF 15,000 of transaction expenses leaves CHF 5,000, not CHF 20,000, for the first months. A CHF 12,000 repair would then require another source of cash. These illustrative amounts are not a cantonal fee estimate. They explain the need for a separate cost statement and a post-completion balance. Obtain the actual professional quotations before deciding how much deposit you can safely provide.
Inspect upcoming work
Review condition reports, service records and the age of major systems. Where shared ownership is involved, ask about common-property projects and available reserves. A property can be affordable on paper while a major bill is already foreseeable. Avoid relying on a generic maintenance percentage for known repairs; obtain a specific estimate and decide who bears the cost under the sale agreement. Distinguish necessary work from cosmetic improvements so optional upgrades do not consume the essential safety buffer.
A reserve is not failed optimisation
Using less cash as equity can increase borrowing cost, but retaining liquidity can prevent expensive emergency funding or a forced asset sale. Compare that trade-off explicitly with your adviser and lender. The appropriate reserve depends on income stability, dependants, property condition and insurance arrangements. Do not select a universal amount from someone else’s budget. Model several months of essential expenses and a plausible property bill, then check whether the remaining balance is genuinely available without selling restricted or volatile assets.
Document the final allocation
Before signing, reconcile every source and use of funds, the expected transfer dates and the balance retained. Ask what happens if completion moves or the lender valuation changes. Keep a contingency for costs that are not yet fixed and avoid labelling an unconfirmed loan increase as a reserve. After completion, rebuild the reserve before discretionary improvements. The objective is a purchase that leaves the household operational, not simply a maximum deposit that makes the initial financing ratio look impressive.
Sources and further reading
Original Clearwise analysis. External reporting provides context; rules and contract terms must be verified with the competent authority or provider. Some press articles may require a subscription.
Apply this to your situation
Compare your actual documents and clarify what matters before making a commitment.
Request a free consultationGeneral guidance, not a binding quote or personalised legal, tax or investment advice. Examples are hypothetical and results are not guaranteed.
