Federal Mortgage Bank Approves New Housing Scheme for Nigerian Workers

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The Federal Mortgage Bank has made it easier for Nigerian workers to own their own houses by the time they retire.

The Board of the Federal Mortgage Bank of Nigeria (FMBN) has approved the implementation of a new housing scheme; the Rent-To-Own Housing Scheme the Mortgage Bank says is aimed at making home ownership more accessible and affordable for Nigerian workers.

The Mortgage bank further revealed that the scheme would provide an easy and convenient payment plan to help workers own their homes.

Speaking on the development, the spokesperson for the Federal Mortgage Bank Zubaida Umar, said the scheme was specifically designed for the average Nigerian worker to stay in FMBN homes and estates as tenants, pay for and eventually own the properties.

According to the spokesperson, the properties become that of the tenant after the fulfillment of obligations on the part of the worker through monthly or yearly payment plans spread over a period of thirty years.

The Federal Mortgage Bank further revealed that the chosen property would not exceed a market value of N15million in order to make it affordable for the average Nigerian Worker.

The properties would also attract a single digit interest rate of 9 per cent on the price of the property on an annuity basis.

The new scheme targets Nigerian workers who are contributors to the National Housing Fund (NHF) and would be implemented in phases with about 3,000 houses already planned for the pilot phase.

The Federal Mortgage Bank says it would partner with reputable estate developers to construct quality, cost-effective housing across the country in order to effectively deliver on the scheme.

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The properties to be used for the scheme also include existing estates funded by the Mortgage Bank as well as those in the hands of private investors and estate developers.

The bank further revealed that payments for the properties would be domiciled with the Central Bank of Nigeria (CBN) through the Treasury Single Account (TSA).

Reacting to the development the Managing Director/Chief Executive Officer of the Federal Mortgage Bank, Dangiwa Ahmed, said the development of the scheme was another groundbreaking initiative of the Bank targeted at increasing access to affordable housing by Nigerian workers who fall into the low-medium income brackets.

According to the chief executive,

The rent-to-own housing product is designed to make sure that any worker who collects a salary should be able to live in his own home and pay conveniently over periods as long as 30-years. This is a massive relief, especially given how little workers earn.”

 

He also expressed satisfaction about the new scheme which will add to the other initiatives intended to make life easier for the average Nigerian worker.

The FMBN boss said he was hopeful that the implementation of the scheme would totally eliminate the burden of equity contributions by workers for housing loans.

He also said the scheme would complement the existing products of the bank by widening the home ownership bracket, increase housing stock, and help to utilise abandoned estates which will be transferred to the scheme.

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