- FMBN Begins Implementation of Revised Conditions for Accessing Housing Loans
In continuation of a renewed management drive to break down longstanding financial barriers to home ownership by Nigerian workers, the Federal Mortgage Bank of Nigeria (FMBN) has commenced the implementation of the newly-approved conditions for accessing loans from the National Housing Fund (NHF).
This includes zero equity contribution for the provision of housing loans of up to N5 million and 10 per cent contribution for housing loans ranging from N5 to N15 million by contributors to the NHF.
A statement issued by the Group Head, Corporate Communications, FMBN, Zubaida Umar, said the revised requirements, which were recently approved by the Board of FMBN, represent a 100 per cent reduction in the equity that contributors to the housing fund were hitherto expected to bring before they could access the housing loans– five per cent and 20 per cent for the two housing loan bands of up to N5 million and N15 million respectively.
Speaking on the development, the Managing Director/Chief Executive Officer, Ahmed Dangiwa, stated that the downward revisions represented a key milestone in the new Executive Management’s drive to ensure that more Nigerian workers can afford decent and quality housing.
“I am delighted that we have been able to achieve this ground-breaking feat. It is a huge win for the Nigerian workers and particularly those that contribute to the National Housing Fund (NHF).
“It will go a long way towards reducing the financial burden of homeownership that contributors to the fund have been carrying for the past three decades.
“When we came on board, we realised that the existing equity contribution put too much pressure on workers. I am glad that today, we have been able to crash it by over 100 percent”.
Dangiwa, advised existing contributors to take advantage of the new friendly conditions to secure loans to purchase or build their homes.
He also advised those not currently registered with the NHF to do so through FMBN offices located in states nationwide, so they too can take advantage.
He thanked the Minister of Power, Works and Housing, Babatunde Fashola for his continuing support towards the attainment of the goal, the FMBN Board and mnagement for the hard work they are putting towards reforming the bank for greater impact.
The National Housing Fund (NHF) scheme managed by FMBN was established by Act 3 of 1992 to enable Nigerians in all sectors of the economy, particularly those within the low and medium income levels who cannot afford commercial housing loans, such as civil servants, traders, artisans, and commercial drivers, among others, to own houses.
FMBN provides mortgage loans from the pool of funds available to the NHF at four per cent interest to accredited Primary Mortgage Banks (PMBs) for on-lending at six per cent to NHF contributors over a maximum tenor of 30 years, which is secured by the mortgaged property.
A contributor can access up to N15million from the Fund through an accredited PMI as a mortgage loan to build, buy, improve or renovate own home after 6 (six) months of continuous contributions.
This lending conditions make the NHF unequalled as a vehicle for affordable housing delivery in Nigeria.