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FMNB makes housing more affordable for workers


The recent launch of the rent-to-own housing scheme with the approval of the board of the Federal Mortgage Bank of Nigeria FMBN,  is specifically to make housing more affordable for Nigerian workers who, ordinarily, cannot build or buy homes from their income.




 It is also an innovative affordable housing product which provides an easy and convenient payment plan towards home ownership for workers in the country.

 Unlike similar schemes promoted by private sector operators which demand higher interest rate for shorter repayment tenor, the FMBN scheme is designed in a way that makes it possible for workers to move into homes built by FMBN as tenants, and commence payment for units which will eventually become their property having completed payment through monthly or yearly rent payments spread over a period of up to 30 years. To further increase affordability, the units will also attract a single digit interest rate of 9 per cent on the price of the property on an annuity basis. The product will cover property with the maximum value of N15 million. 

 About 3,000 houses are planned for the pilot phase. Payments for the houses will be domiciled with the Central Bank of Nigeria, CBN, through the Treasury Single Account, TSA. Properties planned for the rent-to-own scheme are existing estates that are funded by FMBN nationwide and non-funded estates.

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