Sunday, October 4, 2020

Kaduna Mortgage Authority will Make Houses Affordable


Executive Secretary of Kaduna State Mortgage and Foreclosure Authority Yahaya Aliyu Lere, explained to Kamaldeen Aliagan how prospective home-owners can easily accesses a mortgage, in the interview below:

About two months ago, Kaduna State Mortgage and Foreclosure Authority issued some guidelines on how people can access mortgage loans. For purposes of clarity, what steps should a prospective house applicant follow in order to access the loan?

You are very correct, we issued out the requirements for the financing of mortgage for all interested Kaduna residents, whether public servants, private sector workers or even those doing their personal businesses; all are eligible, so long as they are resident in Kaduna state and the house to purchased are within the state.
All you need to do is to come to our office located at Investment House, Ali Akilu way, Second Floor and buy the form with the sum of N5,000, paid to FHA Mortgage Bank account domiciled at UBA. FHA Mortgage Bank is one of the signatories to our Tripartite Agreement and they will be the custodians of the loans accounts and they will also manage the repayments of the loans for the successful applicants. The loan application form purchased is normally attached with an account opening form which the applicant will complete and return with a deposit of N50,000.00.
So when one is able to get the house he wishes and is capable to buy, he will return the completed loan application form along with copy of the C of O or Allocation Letter of the house, a copy of approved building plan/permission, Offer and Acceptance Letters which will indicate the price of the house. In addition, the applicant is expected to attach his or her most recent six months pay slip and bank statement of account, if he or she is a salary earner. A person who is self employed is expected to attach 12 months most recent bank statement. Also, applicants should attach means of identification, whether a driver’s licence, an international passport, national ID card, or even voters card. Utility bills confirming residential address of the applicant, four recent passport photographs, a copy of birth certificate or declaration of age of the applicant should also accompany the application.
However, valuation and search report on the property would be obtained by the banks appointed agents. There would also be an equity contribution by the applicant depending on the amount he/she is applying. In addition to all these, applicants are expected to complete a NMRC Home Ownership form online, via hmip.nmrc.com.ng, giving personal information like current address, employment and subject property and selecting FHA Mortgage Bank and submitting.

So far, how many people have bought the forms and how many applicants have been successful ?

Well, you know it’s an ongoing exercise which has received tremendous attention from members of the public. So far, from our records, more than 250 people as at end of last week, have purchased the loan application forms while 43 have completed the account opening forms and made the N50,000 initial deposit. Furthermore, 39 applicants have completed and returned the loan application forms along with all the required documents, out of which the first batch of 10 applicants have been issued with an Indicative Offer letters, subject to obtaining valuation and search reports. Thereafter, they would be issued permanent offer letters and disbursement by next week.

What is the minimum and maximum period for repayment of this loan?

The minimum repayment period is five years and maximum is 20 years for now and it is subject to 60 years retirement age limit. Don’t forget, one is at liberty to liquidate or repay the loan at any given time prior to expiry.
The ceiling is N50million maximum, but preference will be given to first time home owners applying for N15million and below at this initial stage. Our main focus is the low and medium income earners. However, that is not to say we are not going to accept applications above the N15million. We already have few of such applications and are receiving attention.

Can one access the loan to buy a piece of land or to renovate an existing house? 

No, this scheme is purely for completed apartments, we do not finance purchase of land or renovation of an existing house. One may try Federal Mortgage Bank but as for us, may be in future as we grow, we may have that window.

 Is there a collaboration between Kaduna State Mortgage and Foreclosure Authority and Estate Developers in Kaduna State?

Absolutely yes! We have in fact written to several of them in the past few weeks and most have responded. The collaboration is key to successful implementation of the State housing policy which is also part of our mandate. These Developers have keyed into the State Public Private Partnership on Housing Policy and were given hectares of land to construct these affordable houses and many have successfully built hundreds of these houses and ready for off takers. Part of our primary mandate is to act as intermediary between the State, Developers, residents and mortgage lenders, so that off takers of these houses get a better deal. So, collaboration becomes imperative and absolutely necessary.

The Federal Government has recently announced that it will inject N2.3 trillion in the economy under the Economic Sustainability Plan (ESP). How is your Authority going to benefit?

This is a laudable initiative by the Federal Government which many countries have done something similar across the globe. It is especially intended to mitigate imminent recession due to the effect of the Covid 19 pandemic which virtually brought the entire global economy to its knees.
Housing sector is getting over N500 billion under this stimulus as 300,000 affordable/social housing across the 774 local governments in the country are going to be constructed. Kaduna State, with its 23 Local Government, will be getting about 10,000 units. This will no doubt create jobs, stimulate local manufacturing and above all improve quality of life of the citizens.
Kaduna Mortgage and Foreclosure Authority will play a major role in mortgage finance arrangements for the off takers upon completion of these houses. In fact, the ball has been set rolling by the establishment of various sub-committees by State Economic Development Council, which includes Mass Housing Sub-Committee, being chaired by the Commissioner of Housing and Urban Development, towards ensuring the state government derives maximum benefits of this intervention.

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