NHF Mortgage Loan

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.


nhf loan

Estate Development Loan

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.


estate development

Capital Market Window

It is the Banks prime function. The operation is designed for FMBN to issue mortgage related debt securities (under FG guarantees and other incentives) to raise capital market funds at low costs for sustained liquidity in both Nigerias secondary and primary mortgage markets. Such debt instruments are targeted at institutional investors, pension funds, insurance companies and their life funds, consolidated universal banks, etc.

The funds so raised are channeled by wholesale mortgage on-lending by the Bank at market rate (via secondary mortgage transactions) to end-users particularly home loan originators (PMBs & universal banks) and housing estate developers. The proceeds of the capital market operation are also for funding the Banks Mortgage Refinancing Window. The operation is pursued to also strengthen the primary mortgage market as a platform for the emergence and development of a viable secondary mortgage market in the country.

Our capital market instruments for use now and in future include:

  •   Issuance of securities tied to FMBN assets.
  •   Sale of Promissory Notes based on FGN Guarantees to source funds for on-    lending through rated mortgage originators.
  •   Securitization of mortgage assets surplus to its portfolio requirements to raise    funds to finance both the primary and secondary mortgage markets.
  •   Sale of certificates of deposits to raise funds from investors including financial    institutions. Such instruments though long-tenured could be rediscountable with    the support of the Central Bank of Nigeria.
  • capital markets

    Home Renovation Loan

    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.


    home renovation

    Internal Records Office (IRO)

    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.

  •   The IRO provides a platform for an alternative security which is achieved by    creating and accepting equitable mortgages for NHF loans.
  •   The IRO accepts original allocation letters, executed Deeds of Assignment, Deeds    of Legal Mortgage and Sale and Administration Agreement (equitable mortgages)    of properties from NHF applicants on the strength of which the loan is disbursed    to the NHF contributor, through an accredited PMB, pending the perfection and    Assignment of the mortgage to FMBN.
  •   We entertain request for search queries for NHF customers and the general public    through a computerized process.
  •   Provide digital archives of NHF title and supporting documents.
  •   Enhance perfection of mortgages.
  •   We liaise with land authorities to safe guard the interest of FMBN over concerned    properties.
  •   We scrutinize documents submitted and provide standardized template for use.
  •   Eligible NHF loan applicants who are yet to obtain requisite title documents.
  •   PMBs and developers who wish to participate in the scheme.
  •   PMBs who do not have interim security such as Bank Guarantee or other alternative security required by FMBN
  •   Members of the public upon the payment of requisite fee.
  •   PMBs and Developers whose NHF loan applications have been approved.
  • STAGE 1: The developer submits the following:
  • Application for registration and accommodation under the IRO (for approved NHF loans only)
    1.   Duly completed FMBN registration form.
    2.   Letter of undertaking not to re-issue allocation letters.
    3.   Two copies of the NHF applicant’s allocation letters (duplicates) with a passport photograph of the applicant affixed there on.
    4.   Survey plans and all supporting documents for the issuance of C of O as required by the relevant issuing authorities
    5.   Receipt of payment of registration fee of ₦250,000.00 by the estate developer.
  • STAGE 2: The NHF contributor and the PMB among others submit the following:
    1.   Receipt of payment of registration fee of ₦2000 per applicant.
    2.   Executed Deeds of Legal Mortgage and Sale and Administration Agreement (SALA).
    3.   Receipt of payment of perfection fees which is 10% of the loan sum.
    4.   Notice to relevant Land Registry of FMBN’s equitable interest in the property and authority to collect title document
    5.   Executed Deeds of Assignment of the mortgage between FMBN and the PMB.
  •   Quickens the NHF loan cycle.
  •   Ameliorates challenges usually encountered by the PMBs in providing interim securities (e.g. Bank Guarantee) and other alternative securities required by FMBN
  •   Provides backup for title documents of NHF applicants (who take advantages of IRO) through its central data bank.
  •   Enables verification, search and retrieval of NHF title and supporting documents submitted to IRO.
  • Internal Records