The Federal Mortgage Bank of Nigeria (FMBN) has approved the implementation of a Rent-To-Own Housing Scheme.
The rent-to-own housing project targets Nigerian workers who are contributors to the National Housing Fund (NHF) and will be implemented in phases. About 3,000 houses are planned for the pilot phase.
A statement from the bank, signed by Zubaida Umar, Group Head, Corporate Communications, said, “The scheme is specifically designed to make it possible for Nigerian workers to move into FMBN homes as tenants, pay for and own the properties through monthly or yearly rent payments spread over periods of up to 30 years.”
According to the statement, the FMBN’s rent-to-own scheme is an innovative, affordable housing product, which provides an easy and convenient payment plan towards home ownership for Nigerian workers.
“The properties will also attract a single digit interest rate of nine per cent on the price of the property on an annuity basis. The product will cover properties with the maximum value of N15m,” the ststement said.
To deliver on the rent-to-own housing scheme, FMBN said it would partner with reputable estate developers for the construction of quality, cost-effective housing stock nationwide.
Payments for the houses will be domiciled with the CBN through the Treasury Single Account (TSA).
Properties that are planned for the rent-to-own scheme are existing estates that are funded by FMBN nationwide, and non-funded estates.
Speaking on the development, Arch. Dangiwa M. Ahmed, Managing Director/Chief Executive Officer of FMBN, stated that, “The rent-to-own is yet another ground-breaking initiative of the bank that is targeted at increasing access to affordable housing by Nigerian workers who fall into the low-medium income bracket.
“The rent-to-own housing product is designed to make sure that any worker who collects salary should be able to live in his own home and pay conveniently over periods as long as 30 years. This is a massive relief, especially given how little workers earn. I am delighted that we have successfully added this product to the many other initiatives that we have made possible to make home ownership a lot easier for Nigerian workers.”