Press Room

Stakeholders seek single digit interest rate for mortgage loans

Still grappling with the problem of access to long-term fund for housing, stakeholders have urged the Federal and State governments to maintain the single digit interest rate in mortgage loan even if it requires subsidizing for the low income earners.

They also stressed the need to proffer local solutions to mortgage financing by considering generational mortgage financing where tenor could be extended beyond the original mortgagee for continuity.

In a communiqué issued at the end of the 2016 National Summit on Affordable Housing in Abuja, the participants agreed that the Federal Mortgage Bank of Nigeria should be recapitalized and enforcement of the National Housing Fund (NHF) contribution as enshrined in the enabling Act.

The summit expressed the need for PENCOM to invest a sizeable part of the pension funds, dormant assets of banks and unclaimed dividends in Primary Mortgage Products; put in place the appropriate construction financing schemes including funding sources for multilateral schemes.

They further urged governments to reduce the cumbersome process of land acquisition and land titling with a view to easing housing construction. According to the statement, the summit agreed that the journey of repositioning the Housing Sector as one of the key drivers of national development had greatly progressed and confident that with the cooperation and support of all stakeholders, the sector will be re-energized to fulfill the aspirations of the Nigerian people.

It stressed the need to develop sectoral policies on affordable housing in consonance with the provisions of the various Acts and bills on land utilization for housing.

To this end, the participant directed that the various bills on Land for the construction of houses in the National Assembly should be reviewed and finalized as soon as possible.

According to the communiqué, there is the need to introduce tax exemption to developers who build and provide infrastructure at Affordable Housing sites as well as reduce the rate of land registration, stamp duties, professional fees of valuers and surveyors and lawyers thereby reducing the cost of housing (creating the enabling environment for investment);

It urged Stakeholders to join the Ministry in liaising with the National Assembly to fast track the amendment of the relevant laws already submitted such as foreclosure, mortgage and insurance laws among others.

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