For many Nigerians, the dream of owning a home feels just out of reach. The biggest hurdle is often the significant down payment, also known as the equity contribution, required by mortgage lenders. But what if the key to unlocking that dream is already in your hands?

Thanks to the guidelines from the National Pension Commission (PenCom), your Retirement Savings Account (RSA) can do more than just plan for your future—it can help you build your home today. The provision allows you to use 25% of your RSA for a house, specifically as the equity portion for your first residential mortgage.

This isn’t a loan; it’s an approved withdrawal. But the process requires careful planning and a clear understanding of the rules. The guidelines are fully active, and we’ve created the most comprehensive guide on the internet to walk you through it. If you’ve ever searched for how you can be accessing 25% mortgage from pension in Nigeria, you’re in the right place.

First, Are You Eligible? Understanding the PenCom Mortgage Requirements

Before you start browsing property listings, you need to ensure you meet the strict eligibility criteria set by PenCom. This is the most important step.

Here is a simple checklist of the PenCom mortgage requirements:

• ✅ You Must Have an Active RSA: You need to be an active contributor to a Retirement Savings Account with a licensed Pension Fund Administrator (PFA) like Parthian Pensions.
• ✅ Consistent Contribution is Key: You must have made contributions for a cumulative period of at least 60 months (5 years). These contributions do not have to be with the same employer but must be consistent.
• ✅ It’s for Your First Home: This provision is specifically for the purchase of your first residential property. It cannot be used for a second home or an investment property.
• ✅ The 25% Must Be Sufficient: The 25% of your total RSA balance must be enough to cover the equity contribution required by your mortgage lender.
• ✅ You Must Have a Valid Mortgage Offer: You cannot access the funds speculatively. You must have already secured an Offer Letter for a mortgage from a licensed Primary Mortgage Bank or a commercial bank.

The Step-by-Step Application Process: From Dream to Keys

Understanding the correct order of operations is crucial to avoid delays. Follow these steps carefully.

Step 1: Start with the Mortgage Lender (Not Your PFA)

This is the most common point of confusion. Your journey begins with a mortgage lender, not your PFA.

• Find the property you wish to buy.
• Approach a licensed mortgage lender to apply for a loan.
• Go through their approval process. Once approved, they will issue you an official Mortgage Offer Letter. This letter is the key that starts the pension withdrawal process.

Step 2: Submit Your Application to Your PFA

Once you have the Mortgage Offer Letter, you can now formally apply to your PFA (Parthian Pensions). You will submit your application along with the required documents (see checklist below).

Step 3: PFA Verification and Calculation

We will review your application and documentation. Our role is to:

• Verify your identity and RSA details.
• Confirm your contribution history meets the 60-month requirement.
• Calculate the 25% of your total RSA balance.
• Ensure the calculated amount matches the equity required in your Mortgage Offer Letter.

Step 4: PFA Submits to PenCom for Final Approval

After our internal verification is complete, we will forward your application to the National Pension Commission (PenCom) for their final review and approval.

Step 5: PenCom Approval and Direct Payment

Once PenCom approves the application, the funds are disbursed. Crucially, the money is paid directly to your mortgage lender, not into your personal bank account. This is a safeguard to ensure the funds are used solely for the intended purpose of the equity contribution.

Your Document Checklist: What You’ll Need to Apply

To ensure a smooth process, gather these documents beforehand:

• A formal Application Form to access 25% of your RSA (provided by us, your PFA).
• The official Mortgage Offer Letter from your lender.
• Your most recent RSA Statement of Account.
• A copy of the Property Valuation Report prepared by a registered Estate Surveyor and Valuer.
• A copy of the Contract of Sale for the property.
• A valid means of National Identification (NIN Slip is mandatory).
• Your Bank Verification Number (BVN).

Avoiding the Pitfalls: Common Mistakes to Watch Out For

This process is transformative, but there are potential pitfalls. Be mindful of these common mistakes:

1. Pitfall: Not Having Enough in Your RSA. Before you even start, check your RSA balance. Calculate 25% of it. Is this amount realistically enough to cover the 20-30% equity most mortgage lenders require for the kind of property you want? Do the math first.
2. Pitfall: Forgetting About Other Costs. The 25% from your RSA is only for the equity payment. You will still need separate funds for other costs like legal fees, insurance, and closing costs.
3. Pitfall: Approaching Your PFA First. As we’ve stressed, coming to us without a Mortgage Offer Letter will only lead to delays. Secure your mortgage offer first.
4. Pitfall: Incomplete or Inaccurate Documentation. Any discrepancy in your documents can halt the process. Double-check every detail to ensure names, addresses, and figures match across all documents.

Your Partner in Homeownership

Using your pension as a launchpad for homeownership is one of the most significant financial moves you can make. It’s a powerful testament to your years of hard work and consistent saving.

The process requires diligence, but with a clear plan and a supportive PFA, your dream of owning a home in Nigeria is closer than ever.

Have questions about your RSA balance or need guidance on starting the process? The Parthian Pensions team is here to support you. Contact us today, and let’s help you take the first step towards your new home.