Guidelines for Converting Your Pensions to Mortgage in Simple Steps
- The National Pension Commission (PenCom) stated that pension holders could use their contributions for mortgage
- According to PenCom spokesman, there are simple steps to applying and getting your mortgage financed by your PFA
- He said the pension holder would pay 25 per cent while PenCom would provide the balance of 75 per cent
He outlined the steps needed to get a mortgage financed by the pension administrator
Recently, the National Pension Commission approved the guidelines for accessing the Retirement Savings Account balance to pay equity for residential mortgages.
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Act approved by law
According to the National Pensions Commission (PenCom) Act Section 89 (2), account holders can use a portion of their Retirement Savings balance to pay equity for residential mortgages.
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According to PenCom, conditions stipulate that applicants must be in active employment either as a salary earner or self-employed.
The Punch reports that the PenCom requirements state that the residential mortgage must be done in person and not by a proxy.
PenCom spokesman Abubakar Dahiru said pension holders could go to their mortgage lenders, get an offer letter of the property, validated by the mortgage lender and agree for them to finance the mortgage.
According to Dahiru, you contribute 25 per cent of your pension for the mortgage while a third party would finance 75 per cent.
Maximum amount allowed
PenCom stated that the highest amount to be withdrawn for a mortgage is 25 per cent of the total RSA balance from the date of application, despite the value of equity contribution the lender needs.
In the case of insufficient contribution, pension holders can utilise the contingency part of their voluntary contribution.
Requirements
- Consent form
- Mortgage lender
- Eligibility
- Age limit
- Data recapturing
Insufficient 25 per cent contribution
Dahiru said that in case of insufficient contribution, PenCom will process the application but if the mortgage lender is asking for a higher amount from your PFA, the holder to pay the balance.
Outrage over N2.4 million monthly salary per junior staff at PenCom
Nigeria’s House of Representatives on Finance is investigating the National Pension Commission (PenCom) salary structure and is demanding thorough scrutiny.
Legit.ng reported that in an interactive session on Thursday, September 15, 2022, the panel discovered that the Commission had budgeted N12.02 billion for staff salaries and N2.5 billion for other staff costs for this year.
The lawmakers raised queries after the Director-General of PenCom, Aisha Dahiru-Umar, said the Commission has about N500 staff members but needed to pay them a competitive salary, so they don’t become compromised.
Source: Legit.ng
