PenCom Approves Using The RSA Balance For A Mortgage.

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The Nigerian Pension Commission (PenCom) has declared that pension contributors who are currently employed are now officially permitted to use 25% of the remaining funds in their Retirement Savings Account (RSA) to contribute equity to a mortgage.

Regardless of the amount of equity contribution needed by the mortgage lender, the maximum amount that may be withdraw is 25% of the entire mandatory RSA balance as of the application date.
It stated that RSA holders may use the contingency component of their voluntary contributions; when 25% of a contributor’s RSA balance is insufficient for payment as an equity contribution.

It further emphasized that in order for a company to be eligible to serve as a mortgage lender for this purpose; the CBN must grant it a license, the company must adhere to the Contributory Pension Scheme (CPS), and the company must possess a current Pension Clearance Certificate (PCC).

According to the regulations, RSA holders who have less than three years until retirement are ineligible.
Married couples who are RSA holders are also to submit a joint application; provided that both parties meet the standards for eligibility.

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