This facility is granted at 4% interest to accredited Primary Mortgage Banks (PMBs) for on-lending at 6% to NHF contributors over a maximum tenor of 30 years, which is secured by the mortgaged property. A contributor can access up to ₦15million from the Fund through an accredited and licensed PMB 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.
The EDL is a facility granted to private developers, State housing corporations and housing cooperatives to bridge the housing deficit through mass production of houses for ownership by NHF contributors. The facility is granted at 10% interest with a maximum repayment period of 24 months. It is a facility devised to facilitate large scale production of houses for sale to contributors at affordable prices and thereby, expand the availability of affordable housing in Nigeria. As a general policy of the Bank, houses produced through the EDL window should not exceed ₦15million in price and must be sold only to NHF contributors.
Capital Market is a critical pillar for long term fund mobilization needed in generating necessary capital to facilitate increased Mortgage Financing and Home Ownership in the Country. The Nigerian Capital Market has performed relatively well in the area of Bond Issuance. In 2007, the first Mortgage Backed Security worth N100 Billion was floated by the Federal Mortgage Bank of Nigeria (FMBN) to support the Sale of Federal Government of Nigeria (FGN) Non-essential residential houses under the FGN Monetization Policy.
FMBN Capital Market Unit therefore strives to:
The Bank’s Capital Market investable funds shall therefore comprise of the following:
The loan is to afford Nigerians an opportunity to access mortgage loans for the renovation or improvement of their existing homes. The product is specifically designed for Nigerians who are contributors to the National Housing Fund and desire to renovate or improve existing properties which are personally owned by them or through family ownership.
The FMBN Internal Record Office (IRO) was established by the Bank and began operations in July 2011. It admits and records equitable mortgages from Primary Mortgage Banks (PMBs) as security for NHF loans, on the basis of which the loan is disbursed pending perfection of the mortgage and its assignment to FMBN.