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Pension-backed home loan

Pension backed home loan product detail

Buy your dream home with a home loan equal to a percentage of your pension or provident fund’s withdrawal benefit.

 

 

 

 

Some of the benefits

Up to 70%

Borrow an amount equal to a percentage of the withdrawal benefit of your fund

Savings

Pay no bond registration costs or property assessment fees

Flexibility

Know that a further loan can be available after your first 3 consecutive repayments, subject to affordability and fund rules

How it works
  • You need to be formally employed for the last 12 months
  • You also need to have a company pension or provident fund
  • We set up a loan scheme arrangement between you, your employer and the fund
  • The amount you can borrow depends on your fund savings, and what you can afford
  • Repayments are deducted from your wage or salary
  • If the prime rate changes, your loan term is adjusted rather than your repayment amount (unless you’re close to normal retirement age)
  • The maximum loan term is 30 years or normal retirement age, whichever comes first
  • Your loan should be settled by the time you retire, or when you leave the fund

 

What it costs

What it costs

  • The monthly and administration fees depend on individual fund, and loan requirements 
  • The fund or fund administrator may also charge you a handling fee

See 2019 pricing guide
See 2018 pricing guide

 

How to get it

What you’ll need

  • ID copy (or passport if not an SA citizen)
  • Proof of residence
  • Your last 3 months’ bank statements (if you don’t bank with us) and payslips
  • Proof your loan is for housing purposes (a signed offer to purchase, house plans or a detailed quotation from your builder)
  • The minimum loan amount is based on individual funds 
  • There are no administration orders against your wage or salary
  • How it works
  • What it costs
  • How to get it
  • You need to be formally employed for the last 12 months
  • You also need to have a company pension or provident fund
  • We set up a loan scheme arrangement between you, your employer and the fund
  • The amount you can borrow depends on your fund savings, and what you can afford
  • Repayments are deducted from your wage or salary
  • If the prime rate changes, your loan term is adjusted rather than your repayment amount (unless you’re close to normal retirement age)
  • The maximum loan term is 30 years or normal retirement age, whichever comes first
  • Your loan should be settled by the time you retire, or when you leave the fund

 

What it costs

  • The monthly and administration fees depend on individual fund, and loan requirements 
  • The fund or fund administrator may also charge you a handling fee

See 2019 pricing guide
See 2018 pricing guide

 

What you’ll need

  • ID copy (or passport if not an SA citizen)
  • Proof of residence
  • Your last 3 months’ bank statements (if you don’t bank with us) and payslips
  • Proof your loan is for housing purposes (a signed offer to purchase, house plans or a detailed quotation from your builder)
  • The minimum loan amount is based on individual funds 
  • There are no administration orders against your wage or salary
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