Pension Powered Home Loan allows you to use your pension or provident fund as a security to get a loan to either buy a home, pay towards registration cost or pay for renovations. It is another way we make banking easier.

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Renovate your home

Let’s help you fund your home renovations with Pension Powered Home Loan.

Better interest rate

Get a low interest rate based on the fund agreement.

Get the insurance

Take out insurance to cover the outstanding loan in case of death.

How to get it and what you can expect

  • What you get

    You can get benefits if you want to buy a home or renovate your existing home with Pension Powered Home Loan.

    • Low interest rate: Interest rates are based on the fund agreement and not only on your individual assessment. This means that the fund negotiates lower interest rates on your behalf and you benefit.
    • Loan amount up to the maximum allowable amount as per affordability assessment and your Pension rules with a term of up to 30 years.
    • It is a cost-effective way for you to finance your home as there is no further bond registration or valuation costs.
    • The repayments are easy because they are deducted directly from your salary.
    • You can take out insurance to cover the outstanding loan in case of death.
    • There’s no risk to your pension or provident fund benefits, provided your loan is repaid by normal retirement age.
  • How does it work

    • Apply for the Pension Powered Home Loan.
    • The interest rates are based on the fund agreement and not only on your individual assessment.
    • It’s cost-effective to finance your home since there is no further bond registration or valuation costs.
    • The repayments are deducted directly from your salary.
    • There’s no risk to your pension or provident fund benefits, provided your loan is repaid by normal retirement age.
  • What you will need

    • Proof of homeownership (such as a bond statement, title deed or a stamped letter from the local chief confirming property ownership).
    • A valid bar-coded South African identity document or a passport (if you are not a South African resident).
    • Your latest salary advice to show that you are a full-time employee and to verify income earned.
    • Latest three months’ bank statements.
    • Proof of residential address that is not older than 3 months required for FICA purposes.
    • If renovating, you need a quote from the builder or supplier for building material.
    • If buying, you need an offer to purchase.
  • How to get it

Need more help?

Let one of our consultants help you get the best home loan for your needs.

Call us on:

0860 111 007

E-mail us at:

home@absa.co.za

Visit your nearest branch