The
MBAN President, Mr. Niyi Akinlusi,
said between 1960 and 2009, there were less than 100,000 mortgage transactions
initiated in the country. He however stated that the figure increased between
2010 and 2016 with 181,519 transactions initiated in the industry.
Akinlusi,
who is also the Chief Executive Officer of TrustBond
Mortgage Bank Plc, said the industry was constrained by unfavourable
macro-economic indices including high interest rate, inflation and property
value appreciation, among others.
He
said, “Less than five of existing houses are financed
with mortgage loans due to dearth of titled properties. Creation of mortgages
is hinged on the certainty of title to land as mortgage is a creation of
secured title. There is also difficulty in registration and transfer of title.
“In some states, it could take from six months to two years for a
title document to be prepared; and there are too many processes, which are
slow, cumbersome, unreliable and inefficient. The high cost of title
registration and transfer, which is usually 15 per cent of property value but
as high as 22 per cent in some states, is also a major problem.”
The
MBAN’s Executive Secretary, Mr. Kayode
Omotosho, also highlighted other major problems as the non-automation of
government process in registration and land titling; and inadequate cadastral
system.
According
to him, there are issues of difficult foreclosure and eviction law and problem
of accessing the NHF by majority of Nigerians due to inadequacy of funds to
support the scheme as some key stakeholders are not making any contribution
into the scheme as stipulated by the NHF Act.
He
however stated that public awareness was gradually being created by
stakeholders to encourage more people to invest in properties using mortgage. “Although there are no available statistics on the extent of
coverage of awareness yet, more will still need to be done in this area,”
he stated.
Akinlusi
also said that stakeholders were working on improving the mortgage industry
with several initiatives such as ‘My Own
Home’, a Public-Private Partnership offshoot of the Nigerian Housing Fund
Programme aimed at increasing access to housing finance and housing industry in
the country.
He
said the initiative would also inspire young Nigerians to key into the mortgage
process and start owning homes. (Punch)
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