HOUSING LOAN POLICY

Direct Housing loans to members have been granted until 31 May 2007 in terms of section 16(3) of the Rules of the Fund and the provisions of section 19(5) of the Pension Funds Act, and have been secured by members’ withdrawal benefits subject to affordability criteria.

HOME LOANS

The direct home loan scheme has been replaced from 1 June 2007 by a pension-backed home loan scheme. Standard Bank and First National Bank (FNB) have been appointed as service providers in this regard. A member may apply for a home loan with Standard Bank or First National Bank (FNB) up to the maximum of 45% of the member’s Fund Credit. The loan is granted against the security of the member’s fund credit. Members must comply with all the requirements of the National Credit Act to qualify for such loan. Loan applications must be lodged with Standard Bank telephone no. 0861 009 429 or FNB at no. 0860 762 278.

Members with existing housing loans granted directly from their Fund Credits in terms of the previous dispensation may maintain such direct loans or transfer them to Standard Bank or FNB. A member may only have a pension home loan with either Standard Bank or FNB and not with both. Loans may be transferred between Standard Bank or FNB.

Financial Advice:

The current fees (incl. VAT) charged by these two banks are as follows:

* All Standard Bank loans granted prior to 1 March 2021 will remain at prime of 7% less 1% = 6%. The interest rate above is only for new loans from 1 March 2021.