Bank Seeks Mortgage Repayment Legislation

A mortgage banker and the Chief  Executive Officer of Infiniti Homes Limited, Banjo Bale has called on the Federal Government to put up a legislation that can guarantee repayment of mortgage.

Banjo who made this known during an interaction with the press in Lagos recently, stated that one problem that has faced mortgage institutions is the issue of guaranteeing repayment for loans.

According to him, “A legislative structure of repayment is necessary for mortgage in Nigeria, if development financing to meet housing needs must be made to grow”.

He said the inflation rate in the country now is about five  per cent, pointing out that if a suitable environment will be created through an enabling legislation, the interest rate will remain the same.

The mortgage banker further posited that he would not give out loan or mortgage to any person when 40 per cent of the salary or monthly income will be taken away as mortgage repayment, as such will affect the individual.

The Infiniti Homes boss also explained that it will make no sense for any mortgage banker to give out mortgage below the inflation rate.

On the issue of public-private partnership on mortgage  and housing provision, he said that the partnership has been working, adding  that it is what has made most of the houses and estates we have now in Nigeria possible.

For the middle and low income earners, the mortgage expert said that those with a monthly income of N50,000 can own a house, but not in choice area, pointing out that such homes can be achieved at a place where land will be cheaper and for one or two-bedroom apartment of N2 million cost.