PenCom Approves 34 Financial Institutions For RSA Holders’ Residential Mortgage Scheme

The National Pension Commission has released the list of approved mortgage banks that will participate in the Residential Mortgage initiative for Retirement Savings Account Holders.

The Commission released the approved mortgage bank on Saturday morning.

According to the list released by PenCom, 34 mortgage financial institutions will be participating in the scheme.

The banks are Abbey Mortgage Bank PLC, AG Mortgage Bank PLC,Aso Savings and Loans PLC, Brent Mortgage Bank, Centage Savings and Loans, City Code Savings, Coop Savings and Loans, Delta Trust Mortgage Bank, First Trust Mortgage and FHA Homes Ltd.

Also included in the list is First Generation Homes, Gateway Mortgage Bank, Global Trust Mortgage, Haggai Mortgage Bank, Imperial Homes, Infinity Trust and Jigawa Savings and Loans Ltd among others.

The Commission had in September this year informed all stakeholders and the general public, particularly Retirement Savings Account (RSA) holders, that it had approved the issuance and immediate implementation of the Guidelines on Accessing RSA Balance towards Payment of Equity Contribution for Residential Mortgage by RSA Holders.

The approval, according to PenCom, is in line with Section 89 (2) of the Pension Reform Act 2014 (PRA 2014), which allows RSA holders to use a portion of their RSA balance towards payment of equity for residential mortgage.

The Guidelines cover pension contributors in active employment, either as a salaried employee or as a self-employed person.

To qualify for the mortgage, PenCom said that interested RSA holders (applicants) must meet have an Offer Letter for the property duly signed by the property owner and verified by the Mortgage Lender, adding that the RSA of the applicant will have both employer and employee’s mandatory contributions for a cumulative minimum period of 60 months (five years).

It explained further that a Contributor under the Micro Pension Plan (MPP) is also eligible, provided they have made contributions for at least 60 months (five years) prior to the date of his/her application.