Housing Loans

Previously, you could use 65% of your Fund balance for housing needs. From 1 September 2024, new legislation will allow members to access a portion of their retirement savings in emergencies. As a result, the Fund will no longer be able to provide housing loans from the portion that members can access. Members of the Fund will now be able to use 50% of their accrued Fund balance for all new housing loans at the same low interest rates. 

Important things to note when applying for a housing loan:

• The loan has to be used for the house you, or your spouse, currently live in.
• You have to be the legitimate owner of the house.
• You can use the loan to either upgrade a current house, or buy a new one.
• The loan may not be used for a holiday home.
• No loans are granted for anything other than a housing loan as stated above.
• The interest you pay is fixed and all members pay the same rate (irrespective of your credit rating with the bank). This interest rate is changed from time to time, if necessary.

Is there insurance available with this loan?

Yes, we offer Credit Life insurance at R1,36 per R1000,00, covering events like Death, Total and Permanent Disability, and Retrenchment. Additionally, there's an option for death cover on the outstanding loan balance.

What is the interest rate on the loan?

Our interest rate is competitively set at the current Repo rate plus 2%, as regulated by the PFA for in-house arrangements.

How will I receive the loan funds?

The loan amount will be directly paid out to your bank account, ensuring a smooth and straightforward process.

When is the housing loan repaid?

You will pay monthly premiums to the Fund, as with any other loan, but when you leave the Fund, any outstanding amount will be deducted from your withdrawal or retirement benefits.  Your maximum repayment period is 10 years.

How do I apply for a housing loan?

To apply for a housing loan, please contact us.

Fees

A once-off loan initiation fee of R282.00 (excluding VAT) for new loans from 1 October 2023 and a monthly loan administration fee of R60.00 (excluding VAT) per active loan, will be payable.