As part of fulfilling its mandate of bridging housing gap that is currently posing a great challenge to the county, the Federal Mortgage Bank of Nigeria (FMBN) has unveiled various products for affordable homes.
Speaking to journalist at the ongoing Lagos International Trade Fair, FMBN, Managing Director Ahmed Dangiwa, said that the Bank has the primary mandate of financing affordable housing for the low and middle income earners in both the formal and informal sectors through the National Housing Fund (NHF) Scheme by registering and contributing 2.5 percent of their monthly income.
He stated that the overall objective is to provide cheap source of loanable funds to nurture and sustain the mortgage industry and eventually facilitate affordable home-ownership for the low and medium income group in the country.
N5million, while loan request above N5million but not more than N15 million attracts 10 per cent equity.
According to him, “Section 14 (2) of the National Housing Fund Act Cap N.45 of 1992 stipulates that a contributor to the Fund can access a loan from the Fund for the purpose of building, purchasing or renovating of existing houses. In order to achieve this, FMBN has developed concessionary loan windows to enable Nigerians access mortgages for homeownership.”
He pointed out that in the event that the contributor could not benefit, he or she would be refunded his or her contributions plus interest after attaining the age of 60 years or after 35 years in service as stipulated by the NHF Act.
“To enhance operational processes, the Bank had gone digital with the launch of the USSD code where contributors can access information such as retrieve NHF account number, account balance, generate statement of account, check affordability using the Mortgage calculator etc which meant that the use of passbook is phased out.
FMBN, as at today, is the last succor of the common man in Nigeria through its affordable Mortgages and home construction financing. The Bank has in its stable the following products for Nigerians to take advantage of and benefit from the National Housing Fund (NHF) Scheme”, he added.
The housing fund is an individual mortgage loans granted at 6 percent which is the most affordable in the country and repayment tenure of up to 30 years,” he stressed.
He noted that construction financing is granted to State Housing Corporations in partnership with the State Governments to deliver houses to civil servants and citizens alike, adding that it also allows an eligible beneficiary to build and construct a residential property.
He said that maximum amount shall not exceed N15million with repayment period of 15 years at 7 percent interest rate. Noting that this is apart from the National Affordable Housing Development Programme currently implemented by the Bank in collaboration with the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), Nigeria Employment Consultative Association (NECA) and interested State Governments.
The programme is delivering 100 units of houses in each state of the federation, in a mix of 3, 2 and 1 bedroom semi- detached bungalows and block of flats.
He unveiled other products such as “Rent to own Loan”, an innovative affordable housing product, which provides an easy and convenient payment plan towards home ownership for Nigerian’s workers.
It presupposes that the usual periodic rent due for such properties either monthly or annually would then be utilized for the installment payment for such property of which the occupant would eventually become the owner.
The product attracts a single digit interest rate of nine per cent through monthly or yearly rent payments spread over periods of up to 30 years with a maximum value of N15million. Others are
Cooperative Housing Loan, a housing finance for organised Cooperative Societies who desire Mortgage facility for their members.