PenCom approves using the RSA balance for a mortgage
The Nigerian Pension Commission (PenCom) on 23 September 2022 announced final approval for pension contributors in active employment to use 25% of their Retirement Savings Account (RSA) balance to pay for mortgage equity contributions.
For Eligibility, the following criteria must be met
1. The guidelines cover pension contributors in active employment, either as a salaried employee or as a self-employed person
2. RSA holders (applicants) who are interested must meet the following requirements;Have an offer letter for the property signed by the property owner and verified by the mortgage lender.
3.The applicant’s RSA must include both employer and employee mandatory contributions for a minimum of 60 months” (five years)
4. A contributor to the Micro Pension Plan (MPP) is also eligible, as long as he or she has made contributions for at least 60 months (five years) prior to the date of application.” RSA holders with less than three years until retirement are ineligible.
5. Married couples who are RSA holders are eligible to make a joint application, provided they meet the eligibility requirements individually.” If they registered before July 1, 2019, RSA holders must have their records updated through the RSA data recapture exercise.