The Federal Mortgage Bank of Nigeria has announced an increase in the National Housing Fund mortgage loan limit from the initial N15 million to N50 million per applicant.
Chairman of the Board of Directors of FMBN, Ayodeji Gbeleyi disclosed this during the commissioning ceremony of Lagos State Development and Property Corporation Staff Millennium Mission Planning and Control Station Ltd Estate at Emuren axis in the Sagamu area of the state.
Gbeleyi said the decision was made in response to requests by the higher income-earning segment of NHF subscribers.
He also noted that the increase in the mortgage loan limit demonstrates the FMBN’s commitment to delivering affordable housing to Nigerian workers, especially those in the public and private sectors who are contributors to the NHF Scheme managed by the bank.
The Board Chairman explained further that, “the scheme, established in 1992, enables workers to contribute 2.5 per cent of their monthly income and access loans to cater for their housing finance needs, such as outright purchase, self-construction, home renovation, and rent-to-ownership.
“More recently, the Board of Directors approved an increase in the NHF mortgage loan limit from N15 million to N50 million per applicant in response to requests by the higher income
earning segment of NHF subscribers.
“The maximum loan limit, however, is subject to affordability based on the monthly development, I want to assure you of the monthly income of an applicant. Notwithstanding,” he stressed.
The loan limit classification are as follows:
- Up to N15m is for Basic borrowers
- N25m Limit is for Classic borrowers, and
- N50m Limit is for Premium borrowers.
As for Premium borrowers, these are high income earners who are contributors to the NHF. Amongst such group are the TUC members who work in the Oil & Gas sector as well as other contributors in the Banking industry.
There are so many factors that contributed to the increase in the loan limits, and these include the rising cost of building materials \ selling prices of houses. The most recent is the Business Facilitation Act (BFA) which has made the Bank to be more answerable to the yawnings of our different classes of contributors.
The Managing Director/Chief Executive of FMBN, Madu Hamman, at the event, disclosed that the 72-unit project was fully funded by FMBN and is in fulfillment of the commitment to the homeownership dreams of Nigerian workers who are contributors to the National Housing Fund (NHF) Scheme.
He added that the FMBN Cooperative Housing Development Loan Scheme (CHD) funds housing constructions for housing cooperative societies and also funds the acquisition of the houses developed for cooperative members through regular Individual NHF loans.
On his part, the Elemuren of Emuren, Oba Adesegun Abolaji, hailed FMBN and LSDPC for the establishment of the housing estate, which he described as a great development in Emuren land.
Oba Abolaji promised that the community will provide security of lives and properties and also male available 50 more acres of land to support the efforts in bridging the housing gap in the country.
He, however, appealed to both the Ogun and Lagos state governments to provide basic amenities to the host community, especially roads.
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He said, “There are many things we lack here. Now that you have exposed us to the outer world. We need good roads. As I have said before, we will provide 50 more acres of land, so that the housing project will continue. Housing will not be a problem for anybody.
“This estate is a beautiful one, but I will urge the government to provide us with social amenities, especially good roads. The road is in bad condition. We have everything except good roads,” the monarch stated.
The Governor of Lagos State, Babjide Sanwo-Olu, represented by the Permanent Secretary on Housing, Kamar Olowoshago, equally commended FMBN and the Lagos State Development and Property Corporation for their commitment to the advancement of workers’ welfare and for delivering the project promptly.
Sanwo-Olu also called for more collaboration with FMBN to bridge the housing deficit gap in the state.