Tolu and I had always been the kind of friends who shared life’s big dreams over casual coffee hangouts. Today, we found ourselves in the same cozy corner of our favorite café, where he dropped the latest thought on his mind.

“I’ve been thinking about buying a house,” he said, stirring his drink thoughtfully. “But the down payment is a lot. I’ve saved a bit, but it’s nowhere near enough.”

I smiled. “Have you thought about using 25% of your RSA for a mortgage?”

Tolu blinked. “My Retirement Savings Account? That’s for when I retire, right?”

I laughed. “Most people think it’s just for retirement, but you can access a part for a mortgage. Under the Pension Reform Act, if you have been contributing to your RSA for at least five years, you can use up to 25% of it towards your mortgage. Here’s how it works:

1. Contact your Pension Fund Administrator (PFA). They’ll let you know if you’re eligible.

If eligible, that 25% acts as your down payment, reducing the total mortgage amount you will need. This makes your monthly payments more affordable.

2. Submit the required documents, such as your RSA statements, employment history, and property details.”

Tolu sat back, a smile spreading across his face. “I’m going to be a landlord!”

“Thanks, man. You just made my day,” he added.

As we sipped our drinks, I couldn’t help but feel a sense of satisfaction. Helping a friend get one step closer to their dream home, using a solution that had been sitting in their RSA all along, was a great feeling.

Conclusion

Just like Tolu, have you ever thought about saying goodbye to house hunting? Take the first step today by using up to 25% of your RSA towards a mortgage. Contact our team of professionals for expert guidance on how to get started.