South Africa
Pension-backed home loan
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
How to get it
- Email us
- Or speak to us at your nearest branch
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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How it works
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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
- Email us
- Or speak to us at your nearest branch
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
Learn more ABOUT BORROWING
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A pension-backed housing loan (as per the Pensions's Fund Act 19 (5) (a) and 37D) is an alternative form of housing finance where the loan is secured by your retirement fund savings instead of a mortgage bond.
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