Pension contributors in active employment can now pay for equity contribution for mortgage from the balance of their Retirement Savings Accounts (RSA).<\/p>\n\n\n\n
PenCom, in a statement by its spokesman, Mr Abdulkadir Dahiru, in Lagos on Friday, said the policy specified in the new guidelines of the National Pension Commission (PenCom) would be implemented with immediate effect.<\/p>\n\n\n\n
The commission said the approval was in line with Section 89 (2) of the Pension Reform Act 2014 (PRA 2014), which allowed RSA holders to use a portion of their RSA balance toward payment of equity for residential mortgage.<\/p>\n\n\n\n
The statement said the guidelines covered pension contributors in active employment, either as a salaried employee or as a self-employed persons.<\/p>\n\n\n\n
\u201cInterested RSA holders (applicants) must have an Offer Letter for the property duly signed by the property owner and verified by the Mortgage Lender.<\/p>\n\n\n\n
\u201cThe RSA of the applicant shall have both employer and employee\u2019s mandatory contributions for a cumulative minimum period of 60 months, equivalent to five years.<\/p>\n\n\n\n
\u201cA contributor under the Micro Pension Plan (MPP) is also eligible, provided he or she has made contributions for at least 60 months (five years) prior to the date of his or her application,\u201d the statement said.<\/p>\n\n\n\n
According to the commission, RSA holders that have less than three years to retirement are not eligible.<\/p>\n\n\n\n
The statement said married couples, who were RSA holders, were eligible to make a joint application, subject to individually satisfying the eligibility requirements.<\/p>\n\n\n\n
The commission said RSA holders, who registered before July 1, 2019, must have their records updated through the RSA data recapture.<\/p>\n\n\n\n
The statement said application for equity contribution for residential mortgage should be forwarded in person and not by proxy.<\/p>\n\n\n\n
The commission said the maximum amount to be withdrawn shall be 25 per cent of the total mandatory RSA balance as at the date of application, irrespective of the value of equity contribution required by the mortgage lender.<\/p>\n\n\n\n
\u201cWhere 25 per cent of a contributor\u2019s RSA balance is not sufficient for payment as equity contribution, RSA holders may utilise the contingency portion of their voluntary contributions (if any),\u201d the statement said.<\/p>\n\n\n\n
It added that to qualify as a mortgage lender for this purpose, the company must be licensed by the Central Bank of Nigeria, comply with the Contributory Pension Scheme and have valid Pension Clearance Certificate.<\/p>\n\n\n\n
The statement said: \u201cthe commission shall publish names of the eligible mortgage lenders on its website.<\/p>\n\n\n\n
\u201cThe commission, hereby, invites interested RSA holders to contact their PFAs for more information and guidance.<\/p>\n\n\n
Pension contributors in active employment can now pay for equity contribution for mortgage from the balance of their Retirement Savings Accounts (RSA). PenCom, in a statement by its spokesman, Mr Abdulkadir Dahiru, in Lagos on Friday, said the policy specified in the new guidelines of the National Pension Commission (PenCom) would be implemented with immediate […]<\/p>\n","protected":false},"author":2,"featured_media":20789,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[949],"tags":[398],"class_list":["post-45702","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-mortgage-2","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"yoast_head":"\n