MIPF Assisted Member Mortgage Schemes

While the mandate of the Fund is to provide retirement income to members when they retire, one of the major areas of concern to the Fund is the observation that many members get to retirement without owning a home. Home ownership is important because it is the basis for a comfortable life, post retirement. It is therefore important that members adequately prepare for their retirement by owning a home they can retire to, whether in the urban or rural areas. Therefore, the Fund conducts retirement planning and counseling sessions to educate members on the importance of planning for retirement, including home ownership.

One of the ways that members may acquire properties is through accessing mortgage loans. As the Fund Rules do not allow the granting of loans by the Fund to its members, the Fund has made arrangements with the Central African Building Society (CABS), the National Building Society (NBS) and FBC Building Society (FBC) to provide mortgage loans to its members to enable them to own their own homes by the time they retire. The Mortgage Scheme is divided into two parts, namely, the Assisted Member Mortgage Scheme which is a traditional mortgage facility and the Micro Member Mortgage Scheme which is salary based and does not require a Title Deed.

MIPF Assisted Member Traditional Mortgage Scheme

This is traditional mortgage facility that allows members to access mortgage loans from any of the three (3)Building Societies that the Fund is in partnership with. The loans may be for purchasing urban houses, stands for constructing private dwelling houses, or for refurbishing private dwelling houses and improving existing homes.The main feature of the Assisted Member Mortgage Scheme is that the property against which the loan is being obtained by the member must have a “Title Deeds”. It is the Title Deeds that the Building Societies use as security against the loans issued to the member. Each Building Society uses its discretion when approving the loans on a case by case basis. Given that the Building Societies provide the loans and carry 100% of the risks, their terms and conditions apply.

click here to view Traditional Mortgages Terms and Conditions

MIPF Assisted Member Micro Mortgage Loan Scheme

Although the main purpose of the Fund’s Mortgage Schemes remains as that of empowering members to own homes in preparation for their retirement, the Fund’s Micro Member Mortgage Loan Scheme operates as a short-term loan scheme that members may use to acquire properties that may not have Title Deeds. Therefore, this facility seeks to provide a solution for members that fail to secure a property with Title Deeds as required under the Assisted Member Mortgage Loan Scheme. Under this facility, members are able to access shorter tenure loans to purchase stands, build on stands they may already have, or refurbish private dwelling houses and improve existing homes, without the need for Title Deeds. The Assisted Member Micro Mortgage Loan Scheme is currently available through FBC and NBS only.

click here to view Micro Mortgages Terms and Conditions

General Terms and Conditions of the Assisted Member Mortgage Schemes

These are applicable for both the Assisted Member Mortgage Loan Scheme and Assisted Member Micro Mortgage Loan Schemes

1. It is a lending requirement that the members’ employers should be up to date with remittance of pension contributions to the Fund.
2. In addition, the member should have contributed to the Fund for a minimum period of 24 months.
3. All the Building Societies terms and conditions apply as they provide the loans and carry 100% of the risk.

How to Apply

1. Members should approach the respective Building Societies to be vetted and advised of their Loan entitlements.
2. Identify a Property for acquisition and sign an Agreement of Sale
3. Complete Loan Application Form which is available from Employers, the Fund and the Building Societies.
4. Employer shall issue Confirmation Letters and Letters of Undertaking. The Letters of Undertaking are not guarantees by the Employers, but a commitment to deduct and remit mortgage installments to the Building Societies on behalf of the members, and to notify the Building Societies of any changes in the members’ conditions of employment, including employment status.
5. Submit the Confirmation Letter along with a copy of the National Identification Document to MIPF to enable the Fund to verify membership and qualification, and issue a Letter of Introduction. The Letter of Introduction confirms a member’s eligibility to participate in the Schemes.
6. Thereafter, members shall submit their Loan Application Forms together with supporting documents to their chosen Building Societies.