Your pension.
Your pathway home.
Eligible Retirement Savings Account holders may access up to 25% of their RSA balance as equity contribution towards a residential mortgage, subject to applicable PenCom requirements.
Your RSA can help provide the equity for a home.
The 25% RSA provision allows an eligible RSA holder to use part of the RSA balance as equity contribution for securing a residential mortgage.
The maximum amount is 25% of the total RSA balance as at the date of application.
Where the mortgage lender requires less than 25% of the RSA balance, only the amount required for the equity contribution may be accessed.
Where 25% of the RSA is not enough to meet the required equity, the applicant must provide the difference to the mortgage lender.
Do you meet the requirements?
PenCom's guideline sets the principal eligibility conditions.
Active employment
The RSA holder must be in active employment as a salaried employee or self-employed person.
60 months of contributions
The RSA must have received both employer and employee mandatory contributions for a cumulative minimum of 60 months.
Property offer letter
A property offer letter from the property owner or approved agent is required and must be verified by the mortgage lender.
At least 3 years to retirement
An RSA holder with less than three years to retirement is not eligible under the guideline.
Data recapture where applicable
RSA holders registered before 1 July 2019 must have completed the required RSA data recapture exercise.
Joint application
Married RSA holders may make a joint application, provided each person independently satisfies the requirements.
Up to 25%. No more.
The amount available depends on your RSA balance and the equity required by the mortgage lender.
Maximum RSA balance that may be accessed
Calculated from the total RSA balance as at the date of application.
Only the equity contribution required by the mortgage lender may be accessed.
The applicant must provide the difference to the mortgage lender before the RSA portion can be applied.
The residential-mortgage equity contribution facility may be accessed once.
A clear path from property to equity.
The process involves the applicant, mortgage lender, PFA and PFC.
Choose a property
Obtain a property offer letter from the owner or approved agent.
Approach a mortgage lender
Complete the mortgage application and submit the property offer.
Obtain your RSA statement
Obtain the required RSA statement from your PFA.
Receive the mortgage offer
The lender determines the required equity and issues the mortgage offer.
PFA processing
Submit the equity-contribution request to your PFA with the required documentation.
Remittance
The PFA approves and instructs the PFC, which remits the approved amount to the mortgage lender.
What you will need.
The mortgage lender and PFA require supporting documentation at different stages of the process.
Mortgage stage
Core documents associated with the property and mortgage.
- Property offer letter
- Mortgage application
- Mortgage offer letter
- RSA statement
Property verification
The property must satisfy the relevant verification requirements.
- Confirmation of property title
- Confirmation that the property is available
- Required insurance documentation
- Independent property valuation
Four parties. One property journey.
You
Meet the eligibility requirements, provide the required documentation, select the property and complete the applications.
Mortgage lender
Verifies the property, processes the mortgage and determines the required equity contribution.
PFA & PFC
The PFA processes and approves the request while the PFC remits the approved amount to the mortgage lender.
Questions, answered.
Can I take the 25% as cash?
Will I always receive exactly 25% of my RSA?
What if my 25% RSA amount is not enough?
Can married couples apply jointly?
Can I access the facility more than once?
Can I apply if I am close to retirement?
Where can I find official information?
Your next move starts with clarity.
Explore suitable properties or speak with PEMWO about the property and mortgage journey.