Republic Bank (Ghana) PLC, a subsidiary of Republic Financial Holdings Limited (RFHL) of Trinidad & Tobago, and one of the biggest commercial banks in Ghana, has signed a Memorandum of Understanding (MoU) with Petra Trust Limited Company, a corporate trustee to provide pension-backed mortgages to contributors to the Petra Opportunity Pension Scheme.
A statement from the Bank form the bank indicated that the Memorandum of Understanding sets the stage for pension contributors to trigger benefits of the National Pensions Act, 2008 (Act 766) as amended by National Pensions (Amendment) Act, 2014 (Act 883) where contributors were allowed to leverage their Tier 3 contributions towards owning a home.
Republic Bank (Ghana) PLC explained that under the MoU, the Bank is offering a hundred percent mortgage funding to members of the Petra Opportunity Pension Scheme, implying no down payment is required to access the mortgage.
It noted that the interest rate offered per the MOU is competitive with flexible payment options of either monthly, bi-weekly or weekly.
Mr. Kofi D. Fynn, the Managing Director for Petra Trust Limited Company, on her part, said the signing of the MoU is a testament to the fact that Petra Trust is focused on developing value for its customers.
“It has become clear to us that one of the key aspects of retirement is a place for members to lay their heads. 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 relation to ensure that both of our customers receive the value that they deserve.”
Mr. Kofi D. Fynn
A Unique Relationship
Mr. Benjamin Dzoboku, the Managing Director of Republic Bank Ghana PLC expressed gratitude to the joint team that worked to see the fruition of the collaboration. He said, “this is a unique relationship that is very important to the Bank and the Group”.
Republic Bank is the first Bank 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 to add 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 secure homes using their Tier 3 pension contributions. We are ready to explore more joint efforts such as this, to serve our people.”
Mr. Benjamin Dzoboku
Republic Bank is one of the biggest players in the mortgage industry. Mortgage loans formed the biggest contributor in the loan portfolio with a year-on-year growth of 32.57 per cent for the bank in its 2022 financial statement.
This achievement, according to the bank, reiterates the fact that it is maintaining its position as the pacesetter and preferred mortgage provider in Ghana.
READ ALSO: DDEP Bites ARB Apex and Rural Community Banks As they Suffer Over GH₵1 billion Loss
