Posted By Staff Reporter
If you are interested in applying for the Namba Wan Supper Fund Housing Advance to build your house, you should follow steps below. The main aim of superannuation is to ensure people save for a financially secure lifestyle in retirement. Because of this, there are restrictions on withdrawing money from your super account. However, the Papua New Guinea superannuation laws recognise the need for appropriate housing in our society. They provide a way for people to access some of their super savings before retirement – the Housing Advance. Eligibility If you have been contributing to an authorised superannuation fund, such as Nambawan Super, for at least 5 years, you are eligible to apply for an advance of up to the total of the super contributions you have personally made, providing you do not have any outstanding balance from a previous Housing Advance. The advance does not include any interest component or amount for employer’s contributions. It does include any voluntary contributions you have made. Principal residence The advance can only be used to finance your principal place of residence. This is defined as the house that you live in and go to work from, or that you will live in after you retire. The only exception to this rule is if you are within 5 years of reaching the retirement age of 55 years. If you are purchasing an existing home and the Housing Advance you are eligible for will not be enough to buy the house outright, you can put the Advance towards the equity component you are likely to need to obtain a loan from a bank or other financial institution. Build, buy or improve
If you meet the eligibility requirements and are granted a Housing Advance, you can use it to purchase an existing house, construct a new house or undertake renovations, extensions or improvements. If you are planning to build or renovate, the maximum amount of the Advance you can use for the labour cost is K600. If you are planning to build on state land your application will need to include: A firm and valid quotation from a hardware supplier approved by Nambawan Super, itemising the materials to be used in the construction; A Statutory Declaration affirming the cost of labour you will incur on the construction; A plan of the building. Renovations & extensions If you are planning to use the Housing Advance to renovate, extend or improve your principal residence, your application will need to include: Evidence that you own the property. For example, a copy of the title to a residential lease, state lease, copy of lease, transfer or NHC confirmation letter. A photograph of the house. How your Housing Advance funds are applied If granted, your Housing Advance will be paid directly to the vendor if you are buying the property, or to the approved suppliers you specify on your application form if you are building, renovating or extending. Where you require equity to qualify for a bank loan, your Housing Advance cheque will be drawn in favour of the bank providing the loan. Location For the purposes of the Housing Advance your principal residence can be on either customary land or state land. Customary land If you plan to build on customary land, your Housing Advance application will need to include:
Evidence that the Vendor has clear title over the property;
The repayment is made as an extra 2% contribution, on top of your normal 6% employee super contribution. The extra 2% will be used to offset the amount advanced to you. If you leave Nambawan Super Fund, any balance outstanding from your Housing Advance will be deducted from your final benefits. If you sell the residence, you must repay any outstanding Housing Advance balance in full. Members can make additional lump sum repayments directly to Nambawan Super to pay their outstanding balance more quickly. The approval process Housing Advance approvals are not automatically granted. The Trustee of Nambawan Super must make sure they meet the guidelines set down in the legislation. Each application is screened carefully before a decision can be made. Completing your Housing Advance Application form Forms are available from Nambawan Super head office and all branches around PNG. They can also be downloaded here. As well as the information required in the application form, you will also need to supply supporting documents: Key Features You must contribute to the fund continuously for over five (5) years You are eligible to use the total amount of your own Contributions (excluding any interest and employer contributions)
Download Application Form Information source: Namba Wan Super Next Why You Should Protect Your Website
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