Sunday 13 July 2014     16 Ramadhan 1435
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New mortgage scheme for launch tomorrow

The federal government said it is set to launch an entirely new mortgage scheme tomorrow in Abuja.

Nigeria is estimated to have 17 million housing unit deficit.
The scheme to be launched by President Goodluck Jonathan is aimed at making access to loans easier and more affordable.
The loan which will take 20 years to repay can be accessed from a mortgage or a commercial bank.
The new scheme is to be run by the Nigeria Mortgage Refinance Company (NMRC).
The NMRC Task Manager Mr Sonnie Ayere said under the scheme, “The average Nigerian will soon be able to own their home by accessing up to 20-year loans from mortgage or commercial bank.”
He said repayments can be spread over a maximum period of 20 years, making it easier and comfortable for people to own their own homes while the loans will be made available at reasonable interest rates. He did not say the rate.
NMRC is a Public Private Partnership between the federal government under the auspices of the Federal Ministry of Finance and the private sector.
The minister of finance, Ngozi Okonjo-Iweala last year said NMRC was established by the federal government to make it easier for Nigerians to access loans for home ownership.
She said the World Bank had already bought into the emerging refinance institution with a soft loan of $300 million under the bank’s International Development Association (IDA), concessionary lending window.
She said the federal government is also working on mass housing schemes with a rent-to-own option for workers.
Meanwhile, developers are looking positively to the new scheme.
Mal. Musa Dangoggo Aliyu, the MD/CEO of Urban Shelter Ltd., an Abuja-based property development company said, “It’s a very good idea because it will help the industry and government as well.