For Retirement Fund Members

How it works

Retirement funds (pension or provident funds) are allowed to lend money to their members to buy a house or for housing-related costs, using the member’s fund credit as surety.

Loan amounts depend on various factors, including the amount of retirement funds savings you have. Loans are issued in accordance with the regulations of section 19 (5) of Pension Funds Act of 1956 and the National Credit Act.

Fairheads Financial Services administers the loan on behalf of your retirement fund.

What can the loan be used for?

According to the Pension Funds Act, the loan can only be used:

$
To buy a home
$
To build a home
$
To renovate an existing home that you own
$
To buy land on which to build a home
$
To pay a deposit towards the cost of the home, to pay the transfer and/or registration fees

How much can you borrow?

Your retirement fund will have its own criteria to determine the amount of money you can borrow and has to adhere to the stipulations of the Pensions Funds Act and the National Credit Act. The amount of accumulated savings you have in your retirement fund and affordability in terms of your monthly income and expenditure will be two key criteria.

Contact your retirement fund directly to enquire about the amount you qualify for.

What costs are involved?

Each retirement fund has its own cost and fee structure. Contact your fund to request the information. 

Members do not pay registration fees for the property or legal fees.

How do I make monthly repayments?

The home loan instalment will be deducted directly from your salary via your company payroll.

What do I need to apply?

Each retirement fund will have its own requirements which is stated on the application form. 

Please feel free to contact us if you have any queries, questions or if you would like further product information.

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Disclaimer

Fairheads Financial Services (Pty) Ltd is an authorised financial services provider FSP 18435

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