The National Pension Commission (PenCom) has released the list of 34 primary mortgage banks through which retirement savings account (RSA) holders can access a residential mortgage.
A mortgage is used to purchase or maintain a home, land, or other types of real estate.
The commission made this known during a media retreat organised by the Pension Funds Operators Association of Nigeria (PenOp) in Lagos over the weekend.
The event was themed ‘Pension: An opportunity to own your own home, an x-ray of the new RSA plan on home ownership’.
Out of the 34 mortgage banks, 19 are in Lagos, seven are in Abuja, two are in Akwa-Ibom, and the rest are in other parts of the country.
The banks are Abbey Mortgage Bank PLC, AG Mortgage Bank PLC, Aso Savings and Loans PLC, Brent Mortgage Bank, Centage Savings and Loans, City Code Savings, Coop Savings and Loans, Delta Trust Mortgage Bank, First Trust Mortgage and FHA Homes Limited.
Others are First Generation Homes, Gateway Mortgage Bank, Global Trust Mortgage, Haggai Mortgage Bank, Imperial Homes, Infinity Trust and Jigawa Savings and Loans Ltd, among others.
list of Primary Mortgage Banks allowed to participate in the Use of RSA for Equity Contribution for Residential Mortgage. pic.twitter.com/RI2pTVRNOE
— National Pension Commission (PenCom) (@PenComNig) December 10, 2022
PenCom, under its mortgage guidelines, said that the names of mortgage lenders that meet the eligibility criteria of its guidelines would be published on its website on a bi-annual basis or when any new licence is issued by the Central Bank of Nigeria (CBN).
On his part, Ibrahim Kangiwa, head of investment department, PenCom, said participants under the contributory pension scheme (CPS) must have contributed for five years cumulative of employer and employee’s mandatory contributions to be eligible for acquisition of residential mortgage.
In September, PenCom issued guidelines to allow contributors of CPS to access part of their RSAs for payment of equity contributions for a residential mortgage.
It specified that the maximum amount to be withdrawn is 25 per cent of the total mandatory RSA balance as of the date of application, irrespective of the value of equity contribution required by the mortgage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.