Since the launch of equity contributions to residential mortgages in March, last year, Pension Fund Administrators have disbursed N47.13 billion to mortgage lenders, facilitating equity payments for 5,276 RSA holders’ residential houses. approved N28.53 billion in the first half of the year, enabling 3,539 RSA holders to realise their dreams of homeownership.
“Many employees aspire to own homes before retiring, but the hurdle of providing equity for a mortgage often stands in their way. Recognising this challenge, Section 89 of the PRA 2014 paved the way for RSA holders to own their homes while in active service. In line with this provision, PenCom issued guidelines outlining the processes for accessing up to a maximum of 25 percent of RSA balances to facilitate equity contributions for residential mortgages.
“The mortgage lender, typically a commercial bank or a Primary Mortgage Bank licensed by the Central Bank of Nigeria , conducts due diligence to ensure the genuineness of the offer and the property valuation report. Once confirmed, an applicant approaches the PFA to request his RSA statement, seeking to access 25 per cent or less of the RSA balance for the equity contribution.”