First Bank of Nigeria Limited has disclosed that its home loan scheme with the MOFI Real Estate Investment Fund (MREIF) allows eligible Nigerians to finance completed residential properties at a fixed interest rate of 9.75 per cent, with repayment extending to 20 years.

The bank made the disclosure at a webinar titled, ‘Beyond Rent: The Path to Home Ownership Leveraging FirstBank-MREIF Home Loan Scheme to Build Long-Term Wealth.’

Speaking at the webinar, Head of Personal Banking at FirstBank, Chukwuka Okonkwo, said the scheme was structured to make mortgage financing more accessible to Nigerians struggling with the cost of acquiring homes.

Under the scheme, applicants can access up to N100 million, subject to their income, age and repayment capacity. A minimum 10 per cent equity contribution is required, while eligible contributors can use up to 25 per cent of their Retirement Savings Account (RSA) balance to supplement the contribution.

Okonkwo said affordability remained central to determining how much an applicant could obtain, adding that the bank had agreed on a debt service ratio for the scheme to ensure borrowers retained sufficient income to meet other expenses.

He said couples could apply jointly, allowing the incomes of both spouses to be considered in determining their borrowing capacity. Okonkwo also confirmed that the 9.75 per cent interest rate would remain fixed throughout the agreed loan period.

The scheme currently finances only completed properties purchased outright, with FirstBank requiring properties to have valid and verifiable titles before financing.

National Coordinator, MREIF, Sani Yakubu, said the financing intervention was coming against the backdrop of a housing deficit of more than 20 million homes and yearly housing delivery of only about 100,000 units.

Yakubu said Nigeria would need to raise yearly housing delivery to about 700,000 units to make significant progress in addressing the deficit, which he estimated would require about N60 trillion to bridge.

He said MREIF was established through a public-private partnership to address housing affordability and supply challenges, adding that its first N250 billion tranche comprises N150 billion from the Federal Government and N100 billion from private investors, as part of a N1 trillion programme registered with the Securities and Exchange Commission.

According to him, the partnership with FirstBank is aimed at expanding access to affordable mortgage financing without displacing existing mortgage providers.

Head of Real Estate Investment, ARM Investment Managers, Olubiyi Adekunbi, said more than N140 billion had been deployed to over 2,000 beneficiaries since mortgage disbursements began in April.

He said beneficiaries had accessed the mortgages in 27 states and that the scheme was also open to Nigerians in the diaspora, provided the property had a valid registered title.

Executive Director, Sales and Investments, Leadway Pensure PFA Limited, Olufemi Adebayo, said eligible pension contributors could access up to 25 per cent of their RSA balance for home ownership. He said applicants must have contributed for at least five years, remain in active employment and have at least three years before retirement, adding that Leadway Pensure had processed more than 70,000 applications and disbursed over N70 billion under the scheme.