The Head of Service of the Federation (HOSF), Mrs. Winifred Oyo-Ita, has commended the Federal Mortgage Bank of Nigeria (FMBN) for developing and introducing the rent-to-own housing scheme to ease the financial burden of home ownership among Nigerian workers.
The initiative is also expected to increase access to affordable housing.
Oyo-Ita, according to a statement by the Group Head, Corporate Communications, FMBN, Mrs. Zubaida Umar, made the commendation at the public presentation of the Federal Integrated Staff Housing (FISH) Handbooks on processes and procedures of the programme for both civil and public servants and the new corporate website at the in Abuja recently.
She said the FMBN’s rent-to-own housing product provides a fantastic payment option for civil servants by making it possible for them to move into their homes and pay conveniently over long periods with monthly rent.
She added that houses that are being built and commissioned under the FISH programme would be allocated using the rent-to-own scheme.
The new housing product makes it possible for workers to move into their homes and pay conveniently via monthly or yearly rentals over a 30-year period maximum at nine per cent interest rate. Another key feature of the product is the elimination of the need for equity payment and other costs associated with a typical mortgage transaction.
All completed and ongoing FMBN funded estates in over 20 states are eligible for the rent-to-own scheme for contributors to the National Housing Fund (NHF).
Also, Oyo-Ita commended the Managing Director/Chief Executive Officer of FMBN, Arc. Ahmed Musa Dangiwa, for his commitment to the FISH programme, a scheme established to facilitate the provision of quality and affordable housing for federal civil servants through strategic partnerships with government agencies and private real estate developers.
Additionally, she noted that the office of the Head of Service’s strategic funding partnership with the FMBN for the provision of off-taker support finance in the form of loans and mortgage finance to civil servants for the purchase of houses offloaded on the programme at single digit rates.
The FMBN’s flagship contribution to the FISH programme includes the ABSI FMBN funded estate in Kuje 2, which comprises 83 housing units of 2-bedrooms apartments.
The estate was commissioned in December 2018 and keys to the 83 housing units were given to the Head of Service of the Federation for handover to beneficiaries.
In his comments at the event, Dangiwa expressed delight at FMBN’s association with the FISH programme.
He said: “In our own way at FMBN, we are actively committed to seeing to the success of the FISH programme through the provision of mortgage loans from the National Housing Fund (NHF) scheme and the offer of some of our completed estates for the take-off of the programme. “We have also enhanced the mortgage affordability level of Nigerian workers by eliminating the need for down-payment for mortgage loans of N5 million and below and a reduction to 10 per cent flat rate for loans above N5 million to N15 million from the initial 20 per cent and 30 per cent”.
The FMBN boss also commended Oyo-Ita and urged federal civil servants to key-in and take advantage of the National Housing Fund (NHF) and the FISH programme so they can become home owners.