Question 1

How much can I withdraw from my Retirement Savings Account (RSA)?

Accepted Answer

You are allowed to withdraw a maximum of 25% of your total RSA balance at the time of your application. These funds must be utilized strictly as the equity contribution (down payment) for a residential mortgage.

Question 2

Can my spouse and I pool our RSA accounts for a joint application?

Accepted Answer

Yes. Married couples can make a joint application. Both parties must be contributors and individually meet all the eligibility criteria set by PenCom (such as having contributed for at least 60 months).

Question 3

Can I use the RSA withdrawal to purchase raw land?

Accepted Answer

No. Under the official PenCom guidelines, the mortgage must be for a residential property (completed home). It cannot be used to purchase empty plots of land or commercial properties.

Question 4

What happens to my pension funds if the home purchase fails?

Accepted Answer

If the mortgage facilitation or property transaction fails after the funds have been approved and disbursed, the commercial/primary mortgage bank is legally required to return the funds directly back to your PFA. The funds cannot be paid to you in cash.

Question 5

How long does the entire PFA and PenCom approval process take?

Accepted Answer

Once all required documentation is submitted, the PFA has up to 10 working days to review and submit the application to PenCom. PenCom generally reviews and provides approvals within another 5 to 10 working days, after which funds are disbursed directly to the bank.

Frequently Asked Questions.

Frequently Asked
Questions.