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Mortgage Refinance Firm ‘ll Boost Housing Sector – NIESV
The President, Nigerian Institution of Estate Surveyors and Valuers (NIESV), Mr Emeka Eleh, has said the establishment of the Nigeria Mortgage Refinance Company (NMRC) will boost housing delivery if effectively managed.
Eleh made the observation in an interview with newsmen on Tuesday in Lagos.
He said that the NMRC would boost activities of operators in the mortgage industry.
According to him, a refinance company is the needed in the secondary market to fund the Primary Mortgage Institutions (PMIs) and this is the way it operates worldwide.
“There is no way the housing sector will function without a mortgage.
“The coming on stream of NMCR is very encouraging.
“The Federal Government will also guarantee the bonds NMRC will float until it achieves single or low double digit interest rate,” he said.
Eleh said that even if it started at low double digit interest rates, the rates would still be attractive than the 22 per cent rate being demanded by commercial banks.
He said that the institution was satisfied with this development because it would progressively attain the one digit interest rate if properly managed.
Eleh said that the institution was also encouraged by guaranteed bonds by the government.
The NIESV president said that the institution had for long advocated government’s intervention in the housing sector.
He said that majority of Nigerians were in the low wage category, adding that the NMRC would favour majority of the working class.
According to him, if they take N10 million mortgage loan at 20 per cent interest rate, that means they will use their entire salary to pay back the loan.
The board of NMRC was inaugurated in Abuja on January 16.