Halkalı Halı Yıkama Beylikdüzü Halı Yıkama Bahçeşehir Halı Yıkama seocu
Housing Finance, Latest Housing News

‘Mortgage market records 82 per cent growth’

The mortgage finance market recorded 82 per cent growth between 2010 and 2016, the Mortgage Banking Association of Nigeria (MBAN) President, Mr. Akinniyi Akinlusi, has said.

He made this known during a chat with The Nation. Akinlusi said while the size of the mortgage market in 2010 was N284.1billion, it grew to N348.1 billion in 2012, and by 2016, hit N518.76 billion, about 82 percent growth.


The MBAN chief noted that mortgage transactions, though low, were gradually picking up. He based this on the fact that in 39 years, from 1960 and 2009, mortgage transactions were less than 100,000, compared to the 181,519 deals recorded six years – between 2010-2016.

“We had less than 100, 000 mortgage transactions for 39 years; and in just six years, we had 181, 519 mortgage transactions. This is a significant growth that tells you that this industry is moving now and it is upbeat,” Akinlusi said.
He explained that from microeconomics, mortgage debt to gross domestic product (GDP) is less than one per cent, adding that less than five per cent of the 13.7million housing units were financed with mortgages.

He blamed this low figure on the challenges in the industry, such as titling. The dearth of titled properties, he further explained, is an albatross for mortgages.

“Mortgages are not created in vacuum. So there must be titles. If there are no titles for the land there cannot be title for the house on it. So, it affects both the supply and demand sides of the housing market,” Akinlusi said.

READ MORE:  Nigeria @ 58: Nigerians speak...

He listed the problem of foreclosure as a challenge for the industry, adding that where there is a default in mortgage payment, recovery of same becomes difficult because of the cumbersome court process.

Akinlusi also blamed the tenor period for mortgages as a hinderance for its steady growth.

“Mortgage business is a marathon and not a 100- meter dash. There are mortgages with duration of 20 years whereas the funds available in the market are short-term funds. So, we cannot be using funds of 30 or 90 days for mortgages. This will be a recipe for disaster,” he explained.
The MPR rate, which he said, is 14 percent makes the market interest rate to hover around 20 and 24 percent, meaning that apart from the Federal Mortgage Bank of Nigeria, whose interest is at six percent, others are double digits and this affects mortgage affordability.

Previous ArticleNext Article

1 Comment

  1. A very interesting update on the Industry..what would be very insightful is to know what spurred the massive growth ….for instance what portion of the growth is attributable to FMBN/NHF, State owned Housing Corporation initiatives or NHFP/NMRC and most importantly non bank mortgages provided on the balance sheet of developers…this aspects will help government and investors redirect that efforts and policies….

Leave a Reply

Your email address will not be published. Required fields are marked *

mersin escort bayan mersin escort bayan mersin escort bayan mersin escort bayan erotik film izle erotik film malatya escort bayan malatya escort bayan malatya escort bayan malatya escort bayan
Translate »
escort sakarya escort edirne escort kayseri escort konya escort ısparta escort bornova
Share via
%d bloggers like this:
Kıbrıs gece kulüpleri