PenCom Lists 26 Commercial Banks As Mortgage Lenders

The National Pension Commission (PenCom) has approved 26 commercial banks from the Central Bank of Nigeria as its mortgage lenders.

It also listed three non-interest banks to provide residential and commercial mortgages to workers under the Contributory Pension Scheme to access 25 per cent of the Retirement Savings Account for mortgage.

Last year, PenCom approved the issuance and immediate implementation of the guidelines on accessing RSA balance towards payment of equity contribution for residential mortgages by RSA holders.

“The approval is in line with Section 89 (2) of the Pension Reform Act 2014, which allows RSA holders to use a portion of their RSA balance towards payment of equity for a residential mortgage,” it stated.

PenCom disclosed that the guidelines cover pension contributors in active employment, either as salaried or self-employed employees, noting that the maximum amount to be withdrawn is 25 per cent of the total mandatory RSA balance as of the date of application, irrespective of the value of equity contribution required by the mortgage lender.

According to PenCom, to qualify as a mortgage lender for the purpose, it stated, the company must be licensed by the CBN, comply with the Contributory Pension Scheme and have a valid Pension Clearance Certificate.