NAN-HE-10
Mortgage
By Lilian Chukwu
Lagos, March 7, 2017 (NAN) The former Chairman of the Nigerian Institute of Quantity Surveyor (NIQS) Lagos Branch, Mr Olayemi Shonubi, on Tuesday identified a functional and effective mortgage system as solution to the nation’s housing deficit.
Shonubi made the observation in an interview with the News Agency of Nigeria (NAN) in Lagos.
He said Nigeria still faced the challenge of housing deficit because there was no effective mortgage system.
According to him, the few Primary Mortgage Institutions (PMIs) that claim to be giving mortgage loan still lend at a very high interest rate, in addition to their requests for deposits.
Shonubi said there was need for the Federal Government to restructure the nation’s mortgage system, to position it for better service delivery.
“Today, many other countries are able to combat and overcome the challenge of housing deficit through the help of mortgage system,” he said.
Shonubi said the system should be restructured such that mortgage loans would given at a single interest digit, and its repayment spread over a long period like 20 to 25 years.
He said it was only through such approach that Nigerians, including low-income earners, could own houses.
Shonubi said the interest rate or charges, payable on a mortgage and the tenure of the loan, were critical elements of its affordability.
He condemned decried rents Nigerians were paying as more than enough of what was required to service their mortgage and own their houses.
“If government can structure a 20-25 years mortgage system, which will be given at 7 to 8 per cent interest rate, many Nigerians will build and own houses,” the mortgage expert said.
Shonubi expressed the fear that the nation’s housing problem might continue to linger, until an effective mortgage system was established. (NAN)
LUC/FLP/IA
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Edited by Folorunso Poroye/Idris Abdulrahman