Finance your dream home without any money in hand


BVK offers you the option to pledge your savings or pension instead of withdrawing from your vested benefits. This can have an impact on both your mortgage and your pension. Therefore, you need to think about this decision very carefully.

What are the advantages of pledging your pension fund?

You need money to finance a home, but an advance withdrawal from your pension fund is not the right solution for you? Then you can pledge your pension fund. The advantage is that it remains in your savings account with BVK and therefore does not result in any reduction in your pension. Depending on the lender, you can benefit from lower mortgage rates or higher mortgage loans. In addition, unlike an advance withdrawal, the money does not have to be taxed.

However, you should be aware that there is always the risk of the pledge assets being seized. If you default on your payments, the lender will take the money from your pension fund. This means you will get a smaller pension when you retire.


Two types of pledge

  • Pledging of the retirement capital saved to date. If the pledge is seized, you will lose your retirement capital, equating it to an advance withdrawal.
  • Pledging of your entitlement to pension benefits. This means that if your pledge is seized, you will have to waive a pension (including a disability pension) until the debt has been paid off.

The pledging procedure requires a number of forms and certifications. It is best to contact us first and we will gladly help you get all the right documents squared away in one go.

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