You can now use your pension to fund your dream home
National Pension Commission has now approved guidelines for Retired Savings Account (RSA) holders to get a residential mortgage to fund a home. This was stated in a press release on 23 September 2022
However, RSA holders will need to contact their Pension Fund Administrators for more information.
Here are some of the criteria to access the funding
Offer letter duly signed by both property owner and mortgage lender
The applicant must have both employer and employee pension contribution of 5 years
RSA holders with less than 3 years to retirement are not eligible
Married couples are eligible to make joint application
You can only access 25% maximum withdrawal percentage
What does this mean for you?
You don’t have to wait till old age to access funds from your pension contributions. With the current inflation rate and the steady weakening of the NGN to the USD, it is good advice for individuals to utilize their funds right now to purchase a piece of piece of property.
However, this will favour high-income earners more as they can access more significant funding and individuals that have worked for many years.
This should not deter you from accessing your funding if you are looking to buy a piece of property.
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