Pension-Backed Mortgage
“At Citizens Pensions, we believe that your years of dedication and financial planning should bring you closer to the life you deserve.”
That’s why we’re excited to introduce the Pension-Backed Mortgage, a game-changing opportunity that allows you to unlock up to 25% of your RSA balance to contribute towards your homeownership journey.
Thanks to the approval of the National Pension Commission (PenCom) under Section 89(2) of the Pension Reform Act 2014, RSA holders who meet the minimum eligibility criteria can now use part of their pension savings as an equity contribution for a residential mortgage.
This means that homeownership is no longer a distant dream, it’s within your reach! Whether you’re under the Contributory Pension Scheme (CPS) or the Micro Pension Plan (MPP), you now have a powerful way to invest in your future while securing the home you deserve.
Who is Eligible?
- Have a minimum of 60 months (5 years) of cumulative contributions (both employer and employee) before applying.
- Have an active RSA under the CPS or MPP.
- If you choose to use Voluntary Contributions (VC), the contingent portion must align with the Voluntary Contribution Guidelines.
- RSA holders with less than 3 years to retirement are not eligible.
Why Choose Citizens Pensions?
At Citizens Pensions, we don’t just manage your retirement savings, we help you build a future filled with financial confidence and security. With expert guidance, seamless processes, and a customer-first approach, we ensure that your pension works for you today, not just at retirement.
Your dream home is no longer a wish, it’s a possibility.
Take the first step toward homeownership. Talk to us today about using your RSA balance to unlock your future!
Eligibilitty Criteria for Pension-Backed Residential Mortgage
The eligibility criteria for RSA holders accessing their RSA balance for equity contribution in residential mortgage payments are as follows:
- The RSA holder must have an Offer Letter for the property, signed by the property owner and verified by the Mortgage Lender.
- The applicant’s RSA must have both employer and employee mandatory contributions for a cumulative minimum period of 60 months prior to the application.
- The applicant may utilise the contingent portion of their Voluntary Contribution (VC) for equity contribution, in line with the Voluntary Contribution Guidelines, after meeting the requirement in point 2.
- NSITF and Pre-Scheme contributions can be considered as part of the RSA balance in determining the 25% equity contribution, subject to meeting the provision in point 2.
- If an RSA holder wishes to include their VC contingent portion, NSITF, and Pre-Scheme contributions as equity contribution, they must sign a consent with their PFA.
- Micro Pension Contributors are eligible to access their RSA balance for equity contribution, provided they have made contributions for a minimum of 60 months prior to their application. The contingent portion of their contribution can also be utilized, following the Guidelines for Micro Pension Plan, after meeting the provision in point 6.
- If a Micro Pension Contributor wishes to include their contingency portion as equity contribution, they must sign a consent with their PFA.
- The RSA holder must provide the required documents/information specified in Section 5.0 of the Guidelines, along with any additional documentation requested by the Commission.
- RSA Holders who accessed their RSA balances due to loss of employment prior to the issuance of these Guidelines are eligible to access their RSAs for equity contribution, provided their RSAs received employer and employee contributions for a minimum of 60 months from the date of first contribution and are currently engaged or back in employment.
- RSA holders who have utilized 25% of their RSA balance for equity contribution are eligible for payment of 25% of their RSA for loss of job, in line with the provision of Section 7(2) of PRA 2014.
- RSA holders with less than 3 years to retirement are not eligible to use a portion of their RSA balances as equity contribution for residential mortgage.
- Existing retirees on CPS and exempted persons under PRA 2014 are not eligible to use their RSA balances for payment of equity contribution for residential mortgage.
- Married couples who are RSA holders can make a joint application, provided they individually satisfy the eligibility requirements outlined in these Guidelines.
