25% EQUITY CONTRIBUTION FOR RESIDENTIAL MORTGAGE


Welcome to the future of housing finance! At the forefront of addressing the housing challenge in our country, the National Pension Commission (PenCom) has introduced a groundbreaking initiative— the 25% Equity Contribution for Residential Mortgages.

Bridging the Housing Gap: In response to the persistent housing challenge, PenCom has integrated a new section into the Pension Reform Act 2014. This section, Section 89 (2), empowers Retirement Savings Account (RSA) holders to leverage 25% of their RSA balances as equity contributions for residential mortgages, guided by the comprehensive guidelines issued by the National Pension Commission.

Objectives: The primary objectives of this initiative are ambitious and far-reaching. It aims to:

  1. Provide Access to Equity Finance: Unlocking opportunities for RSA holders in the Contributory Pension Scheme (CPS) to access equity finance for their residential dreams.
  2. Enhance Standard of Living: Elevating the standard of living for RSA holders under the CPS by facilitating the ownership of residential homes throughout their working lives.
  3. Boost CPS Enrolment: Encouraging enrolment in the CPS by offering incentives to employees yet to open RSAs, thereby expanding the reach and impact of the scheme.
  4. Long-term Finance for Mortgages: Establishing a sustainable source of long-term finance for the mortgage sector, catalysing development in the housing sector.

Who is Eligible? This opportunity is exclusive to employees in active service or self-employed individuals with more than three years to retirement, contributing to Funds I, Fund II, Fund III, Fund V, and Fund VI Active.

Authorized Limits and Options: The authorized limit for equity contribution is carefully structured:

  • If 25% of mandatory contributions RSA balance covers the equity contribution, the RSA holder can access the equivalent amount.
  • If 25% falls short, RSA holders can tap into Voluntary Contributions (VC) in line with VC Guidelines.
  • Micro Pension (MP) Contributors facing a shortfall can utilize a contingency portion in line with MP Guidelines.
  • If 25% is still insufficient, the difference can be deposited with the Mortgage Lender.

Additionally, NSITF and Pre-Scheme contributions of an active RSA contributor may contribute to determining the 25% equity contribution.

Join us in reshaping the landscape of homeownership. The future is now, and it begins with your pension contributions with us.



MORTGAGE REQUIREMENT


  1. TANGERINE APT APPLICATION FORM
  2. HANDWRITTEN APPLICATION FROM CLIENT
  3. PFA INDEMNITY FROM CLIENT
  4. PENCOM CONSENT FORM
  5. PASSPORT PHOTOGRAPH
  6. OFFER LETTER FROM MORTGAGE LENDER
  7. PFA INDEMNITY FROM MORTGAGE LENDER
  8. VERIFICATION OF PROPERTY LETTER FROM MORTGAGE BANK
  9. VALUATION REPORT OF THE PROPERTY
  10. OFFER OF EMPLOYMENT LETTER
  11. DEVELOPER OR SELLER OFFER LETTER
  12. AGE DECLARATION
  13. VALID MEANS OF ID
  14. LETTER OF INTRODUCTION FROM THE EMPLOYER STATING RETIREMENT AGE
  15. STATEMENT OF ACCOUNT FROM THE MORTGAGE BANK