The Federal Mortgage Bank of Nigeria (FMBN) has released additional information regarding its rent-to-own mortgage home. In contrast to the previous 7% annual interest rate, the bank stated that it introduced non-interest housing to boost financial inclusion in the country. The revelation followed the consent of the bank’s Board of Directors.
To apply for housing, interested parties need to go to any bank branch nationwide and fill out an application for free. They must be National Housing Fund contributors. Properties would be accessible immediately for candidates who have had their finances accessed and can fully pay.
According to the bank, non-interest housing allows Nigerians to own their homes with a mortgage, but without engaging in an interest-bearing transaction.
The bank keeps ownership of the property under the agreement until the financing term expires or the recipient decides to acquire the property at any moment during the lease duration.
Nigerians who contribute to the National Housing Fund (NHF) Scheme are eligible for the no-interest rent-to-own product. It applies to both FMBN and non-FMBN-funded properties with a maximum purchase price of N15 million.
Beneficiaries can pay to own the property in monthly/quarterly/annual rental instalments over 30 years based on their age and years of service.
According to the bank, it now has around 3,190 housing units available for rent-to-own in various areas across the country. Some of them are located in about 17 states across the country, also including the Federal Capital Territory.
Requirements
- One passport-sized photograph (with a white background), name and signature behind
- NHF contribution number
- Proof of identity (valid driver’s license, National ID Card, international passport, staff ID or Tax Payee Card)
- Pay slip for the last 3 months preceding the application.
- A certified personal bank statement for the last six months.
- A copy of the letter of confirmation from the employer.
- A letter of undertaking to deduct the rental payment from the beneficiary’s salary and allowances and remit to FMBN’s TSA account
- Bank Verification Number (BVN)
