Republic Bank, a leading universal banking institution in Ghana, has launched its new mortgage offering called ‘Pension Backed Mortgage‘ to help people secure homes for retirement.
The Pension Backed Mortgage is a unique product that allows employees to use portions of their accumulated retirement income (specifically tier 3) to secure a mortgage to purchase a house.
Speaking at the launch, Senior Manager and Head of Mortgage Banking at Republic Bank, Dan Adjetey Mohenu, said applicants only needed proof of identity, a pay slip or bank statement, credit history and down payment, if any.
He noted that the mode of repayment is also flexible as applicants have up to 20 years of repayment term or period, and they can pay monthly, quarterly, semi-monthly, or bi-weekly.
Mr. Mohenu added that applicants must also be Ghanaians who contribute to tier 3 pension schemes for at least two years.
He indicated that while the Pension Backed Mortgage improves the bank’s productivity and enhances brand reputation, it also gives applicants the opportunity to own a property at relatively low rates.
“There will also be an appreciation of property that will serve as capital gains for the applicant,” Mr. Mohenu added.
He said developers will also have the opportunity to provide affordable homes to prospective customers and ready market for developed houses to increase sales and improve cash flows.
The Senior Manager and Head of Mortgage Banking at Republic Bank urged everyone to take a mortgage from the bank since it has a low-interest rate on the market, a faster turnaround time, and a good relationship with 110 estate developers.
The Managing Director of Republic Bank, Benjamin Dzoboku, on his part, said due to the over 1.3 million housing deficit in Ghana, the bank has decided to develop the Pension Backed Mortgage to meet the needs of their prospective customers.
“We have purposely made this wonderful product and we are targeting Ghanaian salary workers. You don’t need any deposits and the rate is low. We believe this is the best product in the market,” he explained.
He invited everyone to apply for mortgage offers with the bank since the bank is the premier mortgage institution in the country with rich and diverse mortgage products and services.
“We have several mortgage offers which make us the best mortgage institution. This includes; the home purchase mortgage, home improvement mortgage, home completion mortgage, home equity, and now we are adding pension backed mortgage as the sixth one,” he stressed.
Deputy Chief Executive Officer of the National Pension Regulation Authority (NPRA), David Tetteh-Amey Abbey, who served as the Special Guest at the launch, commended the bank for its commitment to providing housing for Ghanaians over the years.
“We encourage such invest and we have made a lot of provision within the alternative assets grant for pension funds to make a meaningful impact in the real sectors of the economy and we can’t make a meaningful impact without the housing sector,” he noted.
Mr. Abbey said because people are not paid well, the ability to finance a mortgage is even more significant.
He urged everyone to leverage their pension contributions to secure a home for retirement through a mortgage facility.
“When you do this, mortgage providers will not only increase their investment base but make a purposeful impact on the lives of Ghanaians, and this is the dream of Sections 103 and 114 of the Pension Act 766,” Mr. Abbey said.
He charged other trustees to collaborate with mortgage houses like Republic Bank to bring meaning to the aspect of the law that says, “you can use your tier 2 and 3 contributions to secure a primary home”.
- NDC supporters intensify looting, attacks on public institutions - 11 December 2024
- Wednesday December 11, 2024 Newspaper Headlines - 11 December 2024
- Arrests over NDC looting, vandalism rises to 97-Police - 10 December 2024