News Column

Mortgage Financing - FG Flags Off 10,000 Affordable Homes

July 31, 2014

David Agba

Senior Correspondent, Abuja Federal Government on Thursday flagged off the first 10,000 affordable mortgage homes scheme under the Nigerian Housing Finance Programme (NHFP).

Addressing stakeholders that comprised estate developers and Primary Mortgage Institutions in Abuja, the Cordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo - Iweala said the Federal Government's 10,000 mortgage scheme was inspired by President Goodluck Ebele Jonathan's pledge on January 16, 2014 when he launched the Nigerian Mortgage Refinancing Company (NMRC) with a view to making mortgage accessible to Nigerians to enable them purchase and own their own homes.

According to her, the scheme is a private sector driven initiative which the Federal Government initiated with strong support from NMRC and Primary Mortgage Institutions and implemented in partnership with 21 pilot states.

Unlike the existing morgage scheme which tenure is not more than 36 months, the Cordinating Minister said with the establishment of NMRC, mortgage subscribers can pay back betwen 15 and 20 years,

To be eligible, the Minister said applicants must show proof of a regular income tax compliance, specified combined household income and others.

"Applicants which meet the eligibility requirements will be handed over to the Primary Mortgage Lenders (PML) for final processing, the PML will originate the mortgages to be backed or refinanced by the Nigerian Mortgage Refinancing Company." she disclosed.

Dr Okonjo-Iweala, who stressed that the scheme is part of Federal Government programe to help tackle the country's housing deficit in a comprehensive and sustainable way hinted that the scheme is being coordinated by the Federal Ministry of Finance in collaboration with the Federal Ministry of Housing and Urban Development with strong support from the Central bank of Nigeria, the World Bank, the African Development Bank and others.

On those eligible for application, the Minister said those who want to buy houses of N20 million or below could register, while husband and wife can also apply jointly .

She said each applicant must show evidence of regular income from his or her current employment, tax compliance and other requiremebts.

"People who are self employed may also qualify provided they show evidence of regular income and a bank account.. For self employed persons, drawings from their businesses will be used as evidence of income"she stated.

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Source: AllAfrica

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