Accra Wednesday, 23rd August 2023. – Republic Bank (Ghana) PLC, one of the leading Universal Banks and a pioneer in the mortgage business in Ghana has signed a Memorandum of Understanding (MoU) with Petra Trust Limited Company, a corporate trustee, authorized by the National Pensions Regulatory Authority (NPRA) to manage pension schemes in Ghana.
The MoU is a collaboration to provide Pension-Backed Mortgages to members/contributors to the Petra Opportunity Pension Scheme, a Tier 3 master trust scheme sponsored by Petra Trust Limited Company.
A brief event at the Ebankese, Head Office of Republic Bank saw the birth of a collaboration between the two entities. This 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 on their Tier 3 contributions towards owning a home.
Speaking to the press after the signing ceremony, the Managing Director for Petra Trust Limited Company, Mr. Kofi D. Fynn said, the signing of the MoU is a testament to the fact that Petra Trust is focused on developing value to its customers. He went on to say, ‘It has become very clear 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.
On the part of Republic Bank, the Managing Director, Mr. Benjamin Dzoboku 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’. He explained that Republic Bank was 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. Dzoboku added.
Under the MOU, Republic Bank is offering a hundred percent 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.
Representatives of Petra Trust present at the event were Mr. Kofi D. Fynn, MD Mr. Chris Hammond, Deputy Managing Director, Ms. Sonia Oklu, Product Manager, Ms. Amoanimaa Agyenim-Boateng, Head, Legal and Mr. Derrick Lartey, Head, Business and Strategic Initiatives. The Republic Bank team comprised, Mr. Benjamin Dzoboku, Managing Director, Mr. Joseph Laryea Ashong, General Manager, Retail and Commercial Banking, Mrs. Madeline Nettey, CEO, Republic Investments Ghana Limited, Mr. Dan Adjetey Mohenu, Head, Mortgage Business, Mr. Frank Oppong Yeboah, Manager, Mortgage, Mrs. Genevieve Aboney, Manager, Marketing and Communication and Mrs. Leila Pentsil Manager, Corporate Communications.
About the Republic Bank Pension Backed Mortgage Product
The Republic Pension Backed Mortgage product is a unique product that allows an employee to use his/her accumulated retirement income (specifically, Tier 3 contributions) to secure a mortgage for the purchase of a house. The product is accessible to all Ghanaian income earners (individuals and businesses) who have contributed to the Tier 3 pension scheme for at least two (2) years.