Valuer Blames Poor Housing Delivery On Short Mortgage Tenor

An estate surveyor and
valuer, Mr. Chudi Ugo, has blamed the poor housing delivery in Nigeria in  general on the short mortgage tenure system obtainable in the country.
He said that only a few primary mortgage institutions (PMIS) in the country give mortgage loans that are repayable beyond 10 years term.
Ugo, who was speaking in a chat with The Tide last Monday, in Port Harcourt, noted that housing deficit in Nigeria by statistics have risen from seven million housing units in 1991 to between 12 and 15 million units in 2008, while peaking at between 17 and 18 million units in 2012.
He described the 17 percent interest rate on mortgage loans currently charged as very high as against three to five percent charged in developed countries.
According to him, the financial institutions in the country offer loans and not mortgages. This, he said is because mortgage tenure, as practised in many countries is at a minimum of 20 years.
Ugo, who is a member or the Nigerian Institute or Estate Surveyors and Valuers (NIESV), also noted that the high mortgage interest rates had discouraged many investors and Nigerians from aspiring to own their own houses.
He also suggested that mortgage loans should be given out by mortgage institutions at single-digit interest rate, as a way of solving the problem.

Corlins Walter