Pension Backed Housing Loans
The Transport Sector Retirement Fund (TSRF) offers loans to members for housing purposes – these are called pension-backed home loans.
The pension-backed loan enables members to use a percentage of their withdrawal benefit in the fund as surety/guarantee on the loan (in terms of Section 19(5) of the Pension Funds Act). First National Bank is the Pension-Backed Housing loan provider to the Fund.
The above mentioned funds allow members to use up to 60% of their resignation benefits for the following purposes:
- Buy a new home;
- Buy land;
- Building a new house;
- Improving an existing home (i.e. renovations and maintenance).