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ZEIPF Mortgage

by Sep 5, 2019

ZEIPF Mortgage Scheme

 Is an internal housing loan scheme that provides home loans to fund members who would have continuously contributed to the Fund for at least 6 months. The terms are as follows

  • Loans issued on or before 30 September 2019 – Tenor 10 years and interest rates are 6% or 8% pa.
  • Loans issued from the 1st of October 2019 – Tenor is 20 years and interest rate is 15%pa.

The 15% interest rate may be reviewed in future in line with the prevailing market developments. Home loans are specifically provided for the following purpose(s);

  • To purchase completed properties;
  • To purchase vacant serviced stands with title deeds;
  • For building residential stands;
  • For home improvement.

 Summary terms and conditions

  • The maximum loan entitlement is equal to 75% of your 20-year contributions.
  • All mortgaged properties must have Title.
  • A first mortgage bond on the property purchased shall be registered by the Fund and be used as security. The title deeds will only be released upon full loan repayment.
  • The scheme is only for residential purposes and up to 4 Hectares.
  • 25% of the purchase price should be deposited and proof is required before loan disbursement.
  • After repayments of not less than 2 years a member may apply for a top-up amounting to 30% of the original loan.
  • Mortgage fees that include bond fees (approx 5%), transfer fees (approx 7%) and valuation fees should be met by the member.
  • There is a compulsory mortgage protection insurance currently at 1.68% of the loan per annum and property insurance is optional however can be facilitated by the Fund.
  • If a member leaves the Fund, with the members’ consent and subject to the regulations, part of the pension benefits may be used to pay off the loan balance or the member is given 15 months to pay off the balance.

 Requirements for buying a house, vacant stand, building or home improvements

  • A duly completed ZEIPF Mortgage Application Form.
  • Current payslip and copy ID.
  • Agreement of sale (signed by seller- in the absence of a seller, a Power of Attorney or Letter of Administration for a deceased estate AND Purchaser).
  • Copy of Title deeds ( marriage certificate for properties registered in spouses name).
  • Copy of approved plan, if the loan is for building or home improvements.
  • At least 3 Bill of quantities (construction companies registered with the Master of Builders Association) if the loan is for building or home improvements.

 Mortgage application process (21 days)

Fully paid mortgages and release of title deeds

  • A member is free to fully pay off the loan balance at point during the loan tenure.
  • Once paid off, the Fund instructs Sawyer and Mkushi Lawyers to cancel the bond.
  • Bond cancellation expenses are paid by the member.
  • Title deeds are strictly released to the member after bond cancellation. On collection of title deeds from the lawyers or the Fund please bring ID or Passport.