National Fund for Municipal Workers

Pension-backed home loans

The fund understands the need for housing and therefore provide housing loan guarantees based on a maximum percentage of a member’s fund credit. The loan is subject to approval by the relevant credit provider and must be used for housing purposes i.e., renovating of property, purchasing of property and /or a plot and/or for the settlement or partial settlement of an existing bond. Members have the option to make use of any of the two financial credit providers identified by the fund, currently Standard Bank and RFS Home loans. Please note that your employer must have an agreement with the respective financial credit provider, in order to apply for the home loan facility.

How to apply?

The application forms for both financial credit providers including the list of supporting documents required are provided below. The contact details for the respective financial credit providers are also provided should you require further information and assistance with the home loan application process:

Standard Bank Pension Backed lending

086 100 9429 or Pblloanorigination@standardbank.co.za

RFS Home loans

012 523 5555 or morris@rfshomeloans.co.za


Housing Loans and Accessing Retirement Savings FAQs


In terms of the Pension Funds Act the fund is not allowed to grant personal loans to members and your fund credit can only be paid to you on ending service. The fund may only issue surety for housing loans through a specific provider and the loan must be used for housing purposes and is subject to approval. We can therefore not assist with settling personal debts as the main purpose of the fund is to help you save for retirement.

The financial credit provider usually provides the reasons why the application was declined, which vary from affordability, a bad credit record, not servicing current debts and incomplete application forms. It is important to note that the financial credit provider has a legal obligation to grant loans within the specifications of the National Credit Act and can lose their licence if they grant loans to members who do not qualify within these set criteria.
For more information on why your loan was declined and possible rectifying measures that can assist in a future application, please contact the financial credit provider.

You can only end your membership if you are no longer employed at your municipality i.e. if you resign, are dismissed or if you retire. All other Local Government funds are also governed by the Pension Funds Act and their financial providers, who provide home loans, must also comply with the National Credit Act (NCA). Even if you join another fund, your application will also be declined, if you do not meet the criteria as set out in the NCA.

It is very important that you carefully consider the following factors.
Tax! - The benefit that is payable to you is subject to tax. If you are resigning only the first R25 000 is tax free, for example if your fund credit is R300 000 and you deduct the tax free amount of R25 000 = R275 000 is taxable at e.g.18% = R49 500 tax payable.
Loss of fixed income and benefits - If you end service, you will not receive the income or employer sponsored benefits i.e. medical aid, pension fund contributions you currently receive from your employer. With South Africa's unemployment rate of 27%, there is no guarantee that you will find other employment or that you will be able to replace your income.
Long-term negative impact - The benefit paid to you may solve your current financial problems, but in the long term it will have a negative impact on your savings towards retirement. You will have to start saving from scratch, again. This means you will need to save more every month than you would have saved had you not cashed in the savings, for you to get to the same targeted retirement income.

The loan is subject to approval by the relevant credit provider and must be used for housing purposes i.e. renovating of property, purchasing of property and/or a plot and/or for the settlement or partial settlement of an existing bond.
Members have the option to make use of the following two financial credit providers: Standard Bank and RFS Home Loans. Please note that your employer must have an agreement with your chosen financial credit provider, to apply for the home loan facility.
The application forms for both financial credit providers, including the list of supporting documents required, are available on the fund’s website www.nationalfund.co.za or can be downloaded by clicking on the following links;
Standard Bank Pension Backed lending application form
RFS Home loans application form
The contact details for the respective financial credit providers are provided should you require further information and assistance with the home loan application process :
Standard Bank Pension Backed lending - 086 100 9429 or Pblloanorigination@standardbank.co.za
RFS Home loans – 012 523 5555 or morris@rfshomeloans.co.za