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Guidelines to Qualify for Pension Mortgage in Nigeria

Writer's picture: Damilola AgubataDamilola Agubata

As a pension contributor in Nigeria under the Contributory Pension Scheme, you can now use the money in your Retirement Savings Account (RSA) to acquire a residential mortgage. This also applies to you if you are a self-employed business owner under the Micro Pension Plan.


However, to be successful in this, you must know the principles and guidelines laid down by the National Pension Commission (PenCom) as well as the Pension Operators of Nigeria (PenOp).


In this article, we share these guidelines with you to help you as you decide to use your RSA contributions as equity contributions to apply for a mortgage.


Guidelines to Qualify for Pension Mortgage in Nigeria. Credit: Oak Pensions Limited
Guidelines to Qualify for Pension Mortgage in Nigeria. Credit: Oak Pensions Limited

Here are the eligibility guidelines you must note. But before that, let’s look at those who do not absolutely qualify for this.


Who does not qualify to access residential mortgages with pension equity contributions in Nigeria?


You do not qualify if:


  • You will be retiring within the next three years.

  • You are already retired.

  • You have not made the mandatory employer/employee contribution into your RSA for the past 5 years or 60 months.


Now let’s look at the guidelines.


Guidelines to Qualify for Pension Mortgage in Nigeria


1. No matter what the equity contribution requirement of the mortgage lender is, the maximum amount that can be used as a down payment on a home cannot exceed 25% of the RSA balance as of the date of application.


2. As an RSA holder, you can only withdraw an amount equal to the Equity contribution required by the Mortgage Lender if the value of 25% of the RSA balance is greater than the required equity contribution.


3. And if the RSA's 25% RSA balance is less than the Equity contribution required by the Mortgage Lender, the RSA must first deposit the difference with the Mortgage Lender.


4. You as an RSA holder shall have an offer letter for the property duly signed by the property owner and verified by the Mortgage Lender.


5. You can use the conditional part of your voluntary contribution for Equity contribution.


Approval of Equity Contribution


Within five business days, the approval should be finalised. If an application is denied by the Commission because the applicant did not provide the necessary documentation, the Pension Fund Administrator (PFA) will notify the applicant within one business day, giving the reasons for the denial.


To qualify for a pension residential mortgage, you must first own a Retirement Savings Account (RSA). You can open a Retirement Savings Account with Oak Pensions Limited and start your journey towards retirement.



To get started, send us an email via info@oakpensions.com or call the Marketing Manager on 09087448661.



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Oak Pensions Limited (PFA) is set up for the business of Pension Fund Administration under the new Pension Reform Act 2014.

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