Republic Bank, Petra Trust to provide pensioned-backed mortgages
Republic Bank (Ghana) PLC has collaborated with Petra Trust Limited Company, a corporate trustee, to provide pension-backed mortgages to contributors to the Petra Opportunity Pension Scheme, a Tier 3 master trust scheme.
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The two parties have, thus, signed a Memorandum of Understanding (MoU) to that effect at a ceremony in Accra.
Under the MoU, Republic Bank is offering one hundred per cent mortgage funding to members of the Petra Opportunity Pension Scheme, which implies no down payment is required to access the mortgage.
The interest rate offered per the MoU is competitive, with flexible payment options of either monthly, bi-weekly or weekly.
That sets the stage for pension contributors to trigger benefits of the National Pensions Act, 2008 (Act 766) as amended by the National Pensions (Amendment) Act, 2014 (Act 883), where contributors are allowed to leverage their Tier 3 contributions towards owning a home.
Delivering value
Speaking to the press after the signing ceremony, the Managing Director for Petra Trust Limited Company, Kofi D. Fynn, said signing the MoU is a testament to the fact that Petra Trust is focused on developing value for its customers.
“It has become plain to us that one of the key aspects of retirement is a place for members to lay their heads. After serving various industries and the country as a whole, it is prudent that members have a decent place to live and a good investment to have.
Though we have had conversations with several other institutions, we chose Republic Bank because it has demonstrated its commitment to housing, which is in line with our strategic vision and core values; we look forward to strengthening this relationship to ensure that both of our customers receive the value that they deserve,” he said.
The Managing Director of Republic Bank PLC, Benjamin Dzoboku, expressed gratitude to the joint team that worked to see the fruition of the collaboration.
“This is a unique relationship that is very important to the bank and the Group,” he said.
Mr Dzoboku said the bank was the first to engage the National Pensions Regulatory Authority (NPRA) to propose the pension-backed mortgage product to make homeownership accessible to Ghanaians as they consider life after retirement.
“Homeownership is one of our ways of giving back to the community and adding value to the lives of our cherished customers and prospects during their retirement; we made a proposition to the regulator, NPRA, to churn out a mortgage product that will assist employees to secure homes using their Tier 3 pension contributions. We are ready to explore more joint efforts such as this to serve our people,” Mr Dzoboku added.