Nigerians can now apply for prequalification for the Federal Government’s 10,000 mortgages scheme, the Coordinating Minister and Minister of Finance, Dr. Ngozi Okonjo-Iweala, has said.

She gave the information this morning at the Congress Hall, Transcorp Hilton Hotel, Abuja, to kick-start the revolutionary scheme.

In her speech at the occasion, Okonjo-Iweala recalled that President Goodluck Ebele Jonathan on January 16 this year launched the Nigeria Mortgage Refinance Company (NMRC) to address the major constraint posed by poor access to housing finance to developing a robust and affordable housing market in Nigeria.

“During the launch Mr. President pledged that NMRC will become fully operational by the end of the second quarter of the year and that Nigerians will be able to apply for mortgages that will be re-financed by third quarter of 2014. Today marks the actualization of Mr. President’s pledge to Nigerians through this first 10,000 mortgages scheme. Nigerians can now apply and be prequalified for 10,000 mortgages to be provided by lenders,” the minister said.

“This,” according to Okonjo-Iweala, “is a serious scheme for serious people who want to own their own houses seriously. The government is determined to deliver on President Jonathan’s pledge to enable Nigerians to own their own homes through mortgage. But we must make it clear that applicants must meet specific eligibility criteria to qualify. That is the best way to create a level playing field and make the scheme sustainable so that more Nigerians can benefit.”

She described the NMRC as a re-financing vehicle set up to provide mortgage lending institutions with increased access to liquidity and long-term funds.

“Since the ability of banks to deliver mortgage services is limited by the fact that 80% of all banks’ deposits are for 30 days only, the NMRC, in ensuring greater access to finance for tenors of up to 20 years, will help accelerate the growth of the mortgage market for all income levels.

Pre-qualification for a mortgage is a critical first step to home ownership. Once you are pre-qualified for a mortgage by a lender you are literally better armed and emboldened to look for a home to buy, within the limits of the mortgage provided. With the 10,000 mortgages scheme Nigerians can now begin to realise their dream of owning a home and look forward to improved socio-economic outcomes,” the minister said.

On how the 10,000 Mortgages Scheme works, Okonjo-Iweala said: “This scheme is aimed primarily at the first time home buyer who is in the market for mortgages to purchase a home costing between 2 million and no more than 20 million naira. You will need to access an online portal created especially for the scheme – www.housingfinance.gov.ng. You will be asked to go through a checklist or eligibility requirements such a verification that you are a Nigerian, that you have been paying your axes, that you earn a regular income and that you are a first time home buyer.

“Once you have ascertained that you do meet the eligibility requirements you will be led to complete a very simple form requesting your personal details, those of your employer, state of origin, state of residence, salary range, etc. Once you have completed the forms and have read the terms and conditions for participation you will submit the form. Upon submission you will be able to print out a copy of your completed form, or you can direct the completed form online to a mortgage lender of your choice for further processing for prequalification.

“Due to new mortgage underwriting standards as prescribed by the NMRC processing times for prequalification have been significantly reduced, from the usual six to 9 months (there are stories of 12 to 18 months waiting periods) to three to six weeks subject to the level of risk analyses to be undertaken by the mortgage lender and volume of transactions. Some of our partner mortgage lenders have pledged shorter turnaround times, as short of two days.

“Prequalification opens up more windows of opportunities for you. You can either work with a developer – these will also undergo a process of prequalification for compliance with set building standards – who already has housing stock available for purchase and we have some of them captured on the website; or you may wish to work with another developer about to embark on the construction of an estate. You may also decide to upgrade your existing home.”

But how will the home ownership to be boosted by the scheme impact on the Nigerian economy? The minister explained thus: “Making home ownership an accessible dream for many more Nigerians can only impact positively on our economy. It will lead to the increased contribution of housing to GDP from the current negligible 3.1% of our rebased GDP to the high teens of emerging and developed economies such a Malaysia and the United States.

“It will lead to more jobs being created and to greater economic inclusion. It is estimated that for every new house built 3 direct and 8 new indirect jobs are created. Unlocking the housing sector will mean the creation of thousands of jobs for architects, builders, plumbers, welders, electricians, painters and other artisans in allied small and medium scale industries.

“Third, the housing sector also provides social benefits by contributing to community- and nation-building. We know that home-ownership often gives citizens a true stake in their communities. After owning a home, many citizens tend naturally to be concerned about the provision of public goods in their communities – from schools, to clinics, to security.

“To further enhance access we have also reviewed that other key constraint to home ownership – land availability and of simplifying the processes for obtaining a C of O and of property registration. Homes can only be built on land. People will apply for mortgages only if they can be assured of security of tenure, that their investments can used as savings later by themselves and their loved ones.

“To cut through the bureaucracy associated with these processes we initiated a Pilot States Scheme with some state governors and the FCT Minister who have committed to supporting the NMRC initiative and to collaborating with us towards creating the enabling environment for mortgage origination to be refinanced by NMRC in key areas under their jurisdiction:

•Property Registration

•Enforcement of Mortgage Property

•Access to Serviced Land

“Enhancing home ownership while creating jobs and growing the economy remains a critical thrust of the administration of President Goodluck Jonathan. The 10,000 Mortgages scheme is a unique opportunity of making that thrust become reality for you. I urge you all to access the portal and apply. Application process will close once the 10k mortgage limit is reached. I wish you success as you apply to be prequalified for a mortgage to own your own home.”

•Photo shows Okonjo-Iweala.

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