What we offer

1How to apply or access the benefit
  • You are a member of the National Fund for Municipal Workers
  • The Home Loans scheme is approved by your employer
2Features 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.
3What it costs
  • Your loan interest is inked to the prime lending rate
  • An administration fee of R 50.00 including VAT is charged to the account every month
  • A once-off initiation fee of R 500 is charged when you apply for a loan.
  • Home loan calculators
4What 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 (If married in community of property)
  • Copy of marriage certificate (If married in community of property)
  • Affidavit of consent from your spouse (If married in community of property)
5Additional 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

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