Exchange Rates

Home Loans

Did you know that you can take out a housing loan against your Pension?

Pension Backed Lending is a way of financing your house through your Retirement Fund instead of using a mortgage bond.

As a service to its members, the Natal Joint Municipal Pension/Provident Funds (NJMPF) allows housing loans accessible to active members of the NJMPF, in accordance with Section 19 of the Pension Funds Act. The loan must be utilized for housing purposes:

The home loan is granted to a member, by an approved bank, on condition that the NJMPF safeguards the home loan by pledging up to a maximum of 50% of a member’s benefit as surety. If the home loan is granted by the bank, a repayment agreement between all relevant parties is signed. The agreement entails monthly installments (repayments) which are made through a monthly deduction from an affected member’s salary.


Members are reminded of the following information:

  • Should the member exit the NJMPF by passing away, retiring, ill-health, dismissal, retrenchment or resignation, NJMPF before completing the payment, will pay the outstanding balance to the bank from the member’s exit (death, retirement, dismissal, retrenchment, ill-health or resignation) benefit.

  • The banks that are currently associated with the NJMPF regarding home loans are First National Bank (FNB), Ithala and Standard Bank.

 Homeloan Interest Rates, Fees and Contact Information

  First National Bank   Ithala Bank  Standard Bank  
 Interest Rate   Prime less 1.25% p.a.   Prime less 1.00% p.a.   Prime less 0.50% p.a.  
 Monthly Service Fee

  R 23.00 Read more

  R 12.50   R 27.75 Read more  
 Once Off Initiation Fee   No initiation fee   R 250.00   R 536.79  
 Once Off NJMPF Fee   R 375.00   R 375.00   R 375.00  
 Contact Number   0860 762 278   031 3662530   0861 009 429  
 Email Address  


Housing Loan Calculation

Click here if you would like to calculate repayments on a housing loan