Home Loan

Purpose of loan	build, buy or rent a house extend, reconstruct, relocate or repair a house buy or lease land
Maximum amount of loan	20,000,000 yen or the sum of school retirement allowance (the estimate at the time of loan) with the additional benefits based on the membership period, whichever is lower The loan granted for house extension, reconstruction, relocation or repair or land lease shall be limited to 2,000,000 yen.
Application period	Within 6 months after the contract or the construction estimate work order

• A loan of 2,000,000 yen or more may be repaid in monthly regular installments together with semiannual installments in January and July.
• Supplementary attachments and schedules are required for each application together with a loan application, loan agreement, home loan credit report, and letter of acceptance of loan redemption with retirement benefits.
• Through voluntary subscription to our group credit life insurance system, your outstanding loan balance will be redeemed with insurance proceeds if you should die or become seriously disabled during repayment. If you wish to subscribe to the system for your home loan, submit the Application/Notification Form for Group Credit Life Insurance Subscription.

Notes on applying for Home loans

• Application is accepted for 6 months after the contract date, date of lease agreement, or the date of an estimate for construction work.
  If there is an outstanding balance towards the construction company or the seller (only applies to payments due later than the loan date), application for home loans after the 6 months and within 18 months may be accepted.
  The loan amount will be within the outstanding balance (Outstanding Balance Statement required).
• The maximum amount of loan is the total amount of retirement benefits from schools. and an additional amount (total maximum amount is 20 million yen). The maximum addition is 2 million yen for persons whose membership of pension system for a continuous 5 to 10 year period up to the time when the loan application is made and is 3 million yen for persons whose membership period is 10 years or more. The amount that can be loaned must be necessary expenses lower than the purchase price and/or construction fees. Loans from other financial services, your own private funds, and contributions from others are not considered as necessary expenses.
• The loan will be made according to the amount of retirement benefits (including additional amount) according to the “Approval for Provisioned Retirement Benefit” and it will not be required to collateralize or take out a mortgage on the house.
• Any housing loan intended for a land or a house from which you cannot commute or which you wish to purchase considering a future relocation of your workplace or a place to live after retirement shall not be granted.
• Any housing loan intended for a house or land other than the one where you live or any extension work, reconstruction or repair of such secondary house shall not be granted, including such cases under the name of your spouse.
• Commission to a real-estate agent, registration fee, insurance fee, loan commission, inheritance tax, revenue stamp, and other miscellaneous expenditures are not subject to the loan.
  Any Home loan intended for repaying other housing loans by other financial institutions shall not be granted.
• When you reapply for a Home loan after having had one from PMAC before (including those who have paid off the previous loan), we will investigate the relationship between the two housings that are the subject of the loans.
• Our Home loan is intended for your own residential purpose. Therefore, when, during the repayment period, there is your contractual cancellation of construction, suspension of construction work, transfer of the loan property, or relocation from the property with the intention to live in another location, you are requested to promptly pay off the loan balance.
• Since retirement benefits are collateralized under the retirement benefits provision agreement, no mortgage is configured for the property secured for the loan.

Group credit life insurance (Optional)

Group credit life insurance system is a system where, when you die or become seriously disabled while you are repaying a Home loan, the loan balance is paid off with the insurance benefits that the life insurance company pays to PMAC. This system will pay off your outstanding loan obligations without sacrificing your retirement and other benefits, thus supporting your family’s stable livelihood.

Merits

• Since this is a group insurance system, the insurance premium is comparatively low, and it becomes even lower as the loan balance decreases.
• Medical check-up is not required when you apply. You may join the system if your answers to our health questionnaire will satisfy the insurance qualification.

Case example

Case example 1-Traffic accident

A member lost his life in a traffic accident. He has an Education loan in addition to a Home loan while his individual life insurance benefits were small. But thanks to his membership to the system, the outstanding loan balance was redeemed and his family could retain their house.

Case example 2- Serious disability

I am suffering from a severe residual disability caused by a brain infarction. When I made a request for a group credit insurance payout, my case qualified as a severe disability grade. The outstanding loan balance was redeemed group credit insurance payments extending back to the time when my disability was qualified as a severe disability were made and all the repayments after the date of qualification was reimbursed.

Case example 3- Total tragedy

A member died from a disease or an accident while still repaying (while employed) a home loan. There was an outstanding balance of Home loan. Because he did not join the system, all the lump-sum withdrawal payment for survivors was used up for the loan pay-off. His spouse's income was only from her part time job, and the house had to be sold to make a living.