You are a member of the National Fund for Municipal Workers
The Home Loans scheme is approved by your employer
Features and benefits
Borrow up to the equivalent of 60% of your pension fund withdrawal benefit.(refer to the sliding scale 2.2)
No bond registration costs or delays
No property assessment fees
Repayments are conveniently deducted from your salary or wages
Option to apply for a second loan after paying the first loan.(Refer to 2.1 additional lending)
Option to include Home Loan Protection Plan in event of death.
What it costs
Your loan interest is linked to the prime lending rate
An administration fee of R69.00 including VAT is charged to the account every month
A once-off initiation fee of R540.00 is charged when you apply for a loan
Home loan calculators
What do you need
Complete and signed application form
Copy of ID
Latest pay slip
Latest 3 months of bank statements reflecting 3 salary deposits
Proof of income tax reference number
Copy of spouse’s ID
Copy of marriage certificate
NFMW home loan consent form
Additional information
How pension-backed lending works
Every month you contribute money to the pension fund for your retirement. The fund uses these retirement savings to provide a loan guarantee to RFS Home Loans.
Monthly repayments are deducted from your salary or wages to repay your loan. You receive PBL account statements every quarter
The loan needs to be repaid by the time you reach your normal retirement age, or if you leave the fund at an earlier date. If you fail to repay the loan, the fund will use your retirement savings to settle the loan
The Pension Funds Act states that pension-backed loans can only be used for housing, in other words: To buy, improve or repair residential property or to pay off existing home loan(bond)
You must own the property
You and / or your dependents must occupy the property as their normal residence
You can further use a PBL loan to buy vacant land, build a house or improve your current home
How much you can borrow
The amount you can borrow depends on how much you have saved in the pension fund, and how much you can afford
You can borrow up to the equivalent of 60% of your withdrawal benefit in the pension fund (Calculated on a sliding scale)
Your monthly loan repayments may not exceed 40% of your monthly income after deductions (although your pension fund may set stricter rules)
Important points to remember
The maximum term for a loan is 30 years, or standard retirement age (whichever occurs first)
If the prime rate changes your loan term will adjust, rather than your repayment amount ̶ unless you are too close to normal retirement age
You will need to prove that the loan will be used for housing purposes
We will ask the fund to settle your loan using your fund savings if you leave your present employer and they stop deductions, or if you are placed under administration order
Members may now reapply for an additional loan within six months of their last approved application. There must be six consecutive instalments paid before reapplying. The granting of any additional loan is subject to approval upon meeting the credit granting criteria.
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