Barely 2 months ago, the Central Bank of Nigeria (CBN) pegged the maximum mortgage loan for home seekers at N50 million. This maximum mortgage loan is directed at home seekers in the informal sector, which is under the Nigerian Housing Finance Programme (NHFP).
Details of this are contained in the guideline for the uniform underwriting standards for the informal sector, which was released by the CBN earlier this year. It spells out formalities for mortgage banks to offer loans to those in the self-employment space as well as employees.
If you are in the self-employment space, you are categorised under the micro, small and medium-sized enterprises. It is important to point out here that the informal sector contributes over 58 percent of the nation’s economy.
You can use the mortgage loan here to finance the purchase or refinance an existing mortgage loan. As an eligible borrower, you can also use the loan to purchase a single family home or an apartment in a multi-unit building. This is a plus for mortgage trends.
Nigerian Banks Looking to Drive Mortgage Loans
Banks in Nigeria have been encouraged to enlist housing cooperatives and associations into the pool of mortgage loan for home seekers. The idea behind this is to the initiative would give those without structured income access to mortgage loans for property acquisition.
The National Housing Finance Programme under the CBN will keep a close tab on the number of mortgages created in the informal sector. As a borrower, you will receive homebuyer counselling prior to closing on your loans.
Financial institutions in Nigeria are expected to come up with mortgage counselling classes to educate borrowers on their rights and obligations of homeownership as well as the legal consequences of default. This would be done just as it is carried out in other sectors of the economy and nations of the world. This is a good score for mortgage trends.
If you are wondering how a property will be valued under this scheme, licensed and independent valuers who are members of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) will be prequalified by the 34 licensed mortgage banks to value property to be listed in the scheme.
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