The entrance of a robust and viable mortgage guarantee product into the Nigerian housing market is clearly a win for all parties concerned.
The Director, Other Financial Institutions Supervision Department (OFISD), Central Bank of Nigeria, Mrs Tokunbo Martins stated this while delivering a paper at the 12th Abuja International Housing Show.
She said “this existence and/or visibility will be directly related to the effort, we as an industry, invest in ensuring a suitable environment for its development, deployment and administration”
Mrs Martins described a guaranteed Mortgage as one given to a borrower by a lender, where an identified third party, will take responsibility for the loan if the borrower defaults.
The Director said “among the many benefits of the mortgage guarantee is that it is a product of great value to any housing market because it is a tool of opportunity for both the supply and the demand sides of the mortgage market”
She added that “it provides potential opportunity of lower down payment for borrowers, while opening up a larger market for lenders who make the decision to finance the target population for the program”
Mrs Martins further noted that among the benefits of mortgage guarantee to government include mortgages become affordable to citizens; more people can meet their housing needs on their own and more jobs and economic security for the citizens.
Adeleke Samuel, Housing News