By Matthew Denis Abuja
The National Pension Commission (PenCom) has approved guidelines on accessing Retirement Savings Account (RSA) balance towards payment of Equity Contribution for residential mortgage.
This is contained in a Communique made available to Nigerian NewsDirect on Tuesday.
It reads, “Pencom is informing all stakeholders and general public particularly RSA holders that the Commission has approved the issuance and immediate implementation of guidelines on accessing RSA balance towards payment of Equity Contribution for residential mortgage.
The Communique posted that Eligibility covers pension contributors in active employment either as a salaried employee or as a self-employed person.
“Interested RSA holders must have an offer letter for the property duly signed by the property owner and verified by the mortgage lender.
“The RSA of the applicant shall have both employer and employee’s mandatory contributions for a cumulative minimum period of 60 months.
“A contributor under the micro pension (MPP) is also eligible provided the person has made contributions for at least 60 months prior to the date of application.
“RSA holders that have less than three years to retirement are not eligible while married couples who are RSA holders are eligible to make a joint application subject to Individually satisfying the eligibility requirements.
“Application for equity contribution for residential mortgage shall be in person and not by proxy. Maximum Withdrawal Percentage: The maximum amount to be withdrawn shall be 25% of the total mandatory RSA balance as at the date of application irrespective of the value of equity contribution required by the mortgage lender.
“Where 25% of a contributor’s RSA balance is not sufficient for payment as equity contribution, RSA holders may utilise the contingency portion of their voluntary contributions (if any).”
The Communique also stressed that eligibility criteria for mortgage lender to qualify as a Mortgage Lender for this purpose, the company must be licensed by the Central Bank of Nigeria (CBN), comply with the Contributory Pension Scheme (CPS) and have valid Pension Clearance Certificate (PCC).