Homeownership is a major dream for everyone, regardless of gender or age. While the harsh economic climate of today might make this dream seem far-fetched. The Retirement Savings Account (RSA) Mortgage Equity Contribution plan by the National Pension Commission (PenCom) shines a beacon of hope.
The Retirement Savings Account (RSA) Mortgage Equity Contribution plan makes it possible for contributors under the Contributory Pension Scheme (CPS) to utilise up to 25% of their Retirement Savings Account balance towards the payment of equity contribution for residential mortgage.
This is in line with the provisions of Section 89 (2) of the Pension Reform Act (PRA 2014), which allow Retirement Savings Account holders to use part of their retirement savings as equity contributions to secure a residential mortgage in line with the PenCom guidelines.
Who is Eligible?
- Retirement Savings Account Holders: Individuals with an RSA that has both employer and employee mandatory contributions for a cumulative minimum period of 60 months (5 years) before the application.
- Micro Pension Contributors: Micro Pension Contributors who have made contributions into their Retirement Savings Account for a minimum of 60 months (5 years) prior to application.
- Married Couples: Couples who are Retirement Savings Account holders can make a joint application, provided they have individually contributed to their Retirement Savings accounts for a minimum of 60 months (5 years) prior to the application.
Who is not Eligible?
- Retirement Savings Account holders that have less than three (3) years to retirement
- Existing retirees on Contributory Pension Scheme and exempted persons under the PRA 2014
How can you apply?
- Property Offer: Obtain a property offer letter from the property owner or approved agent and approach a licensed Mortgage Lender approved by the National Pension Commission (PenCom).
- Mortgage Application: Fill out a mortgage application with the Mortgage Lender and attach the property offer letter.
- Retirement Savings Account Statement: After confirmation of the property offer letter, request for your endorsed RSA statement for accessing 25% of your Retirement Savings Account balance towards equity mortgage contribution from CrusaderSterling Pensions (CPL).
- Forward Retirement Savings Account Statement to Mortgage Lender: Send the endorsed Retirement Savings Account statement to your Mortgage Lender.
- Mortgage Offer: If 25% of your Retirement Savings Account balance is sufficient as equity contribution, your Mortgage Lender will issue you a mortgage offer letter. If it is not sufficient, the Mortgage Lender will request payment of the supplementary equity contribution from you before issuing the mortgage offer letter. The Mortgage Lender will forward a copy of your mortgage offer letter and supporting document to CrusaderSterling Pensions.
- Complete Application with CrusaderSterling Pensions: After receiving your mortgage offer letter, obtain the application form from contact CrusaderSterling Pensions (CPL) with indemnity to CrusaderSterling Pensions (CPL) for payment of your equity mortgage contribution for the residential mortgage.
- Final Steps: After receiving your complete documents from the Mortgage Lender, CrusaderSterling Pensions will review and forward your application to the National Pension Commission (PenCom) for approval. Upon receiving approval, CrusaderSterling Pensions will make the payment of the approved equity mortgage contribution into your account with your Mortgage Lender.
To learn more about accessing your Retirement Savings Account (RSA) balance towards the payment of equity contribution for a residential mortgage, click here.
For more information, kindly call Tomi on 0201 2713800-4, or Chidiogo on 0201 2714605. Send us an email at info@crusaderpensions.com
