Frequently
Asked
Questions
What’s a mortgage?
A loan given to a borrower for the purchase of a home or investable property. The borrower is required to transfer the title of the property to the lender until all payments on the mortgage is completed.
How much can I secure on a mortgage?
I don’t have an account with your bank, can I access a mortgage loan?
No. you need to open an account with Refuge Mortgage Bank before you can access a mortgage loan.
How long does it take to get a mortgage loan?
This will depend on your ability to meet all the loan requirements. The facility will be disbursed immediately all documentation are complete.
How much do I need as equity contribution to get a mortgage loan?
It varies depending on the loan amount desired by the borrower. Underwriting standard requirements vary from 20% to 50%.
Will my interest rate change?
Market forces determine interest rates as regulated by the Central Bank of Nigeria.
What is the maximum tenor I can apply for?
You can apply for a maximum tenor of 30 years depending on your age and active working life.
Can you refinance my existing mortgage with other banks?
Yes we can refinance other mortgage facilities taken from other banks on more flexible terms.
How do I start the process of getting a mortgage?
You need to have a current account first. All mortgage applications are treated based on merit. Other documents include a copy of the title documents of the property, evidence of adequate cash flow to meet repayments, a Legal search report on the property, a Valuation report on the property, Credit Search on the prospective buyer. Most of them will be done by the bank at the customer’s cost
What types of mortgages are available to me?
Home Purchase Mortgage: this is granted to a borrower to purchase a house
Refinanced Mortgage: this is given to pay off an existing mortgage. This mostly happens when new mortgage offers have more favorable terms, especially lower interest rates, longer tenor e.t.c
Equity Release Mortgage: this is a facility where the property owner decides to realize the value of a property which has been built with personal funding and have no mortgage or loan obligations on it. The person will be required to enter a mortgage contract where the value of the property is paid to the with the property as collateral. The borrower is given the opportunity to raise funds that could be applied to meeting other expenses.
Land Purchase Mortgage: this allows you to buy a land with the land acting as security for the facility
Are there flexible repayment plans for me?
Mortgage repayments will be structured to meet your cashflow and in line with prevailing economic indices
Am I allowed to make a lump sum repayment?
Lump sum repayments are allowed, and it will help to reduce your interest payable.
At what point will you start pursuing foreclosure on my property?
Foreclosures do not immediately come in when there is a default. Foreclosures will only become an option when all other avenues for settlement have been exhausted.
Can I make my repayments quarterly?
We allow you to structure your repayments in line with your income.
Can I take possession of my property while still paying my mortgage?
You are allowed to take possession of your property while still paying your mortgage. The only exception is that you are not allowed to dispose of your property while still paying your mortgage
I’m self employed and can’t prove my income, can you help?
That is not a problem. We will help you draft an income statement based on your sales and expenses
Can my application be done via internet?
Yes your application can be done through the internet and you will have our staff visit you for any other requirement
FAQs for National Housing Funds
WHO CAN BENEFIT FROM THE SCHEME?
The NHF scheme is for Nigerians in all sectors of the economy, particularly those within the low and medium-income levels who cannot afford commercial housing loans e.g. civil servants, traders, artisans, commercial drivers, etc. Any intending beneficiary must be a registered contributor and up to date with his/her contributions.
HOW CAN ONLY 2.5 OF MY MONTHLY BASIC SALARY OR INCOME BE SUFFICIENT TO OBTAIN LOAN TO BUILD A HOUSE?
The 2.5% of the monthly basic salary contribution qualifies you to access the loan. The pool of funds created by the contributors nationwide becomes available to any contributor to borrow from, after contributing for a minimum of six months
HOW DOES A CONTRIBUTOR OBTAIN AN NHF LOAN
A contributor interested in obtaining an NHF loan applies through a registered and duly accredited mortgage loan originator (e.g. Primary Mortgage Banks), who packages and forwards the application to FEDERAL MORTGAGE BANK OF NIGERIA (FMBN).
IS IT THE MONTHLY CONTRIBUTIONS THAT DETERMINES THE LOAN AMOUNT?
No. the loan amount is determined by the applicant’s affordability. This entails his/her income level that will enable repayment of the loan.
WHAT ARE THE DOCUMENTS REQUIRED WHEN APPLYING FOR THE LOAN?
Documents required to process a loan include:
- Completed application form.
- Photocopy of title documents
- Current valuation report on the proposed house to buy or bills of quantities (BOQ) for the house to build.
- Three years tax clearance certificate.
- Evidence of NHF participation
- Copy of pay-slips for the previous three months.
- Equity contribution or personal stake depending on the loan amount applied for.
WHAT IS THE MODE OF REPAYMENT?
NHF housing loans are repaid in monthly installments from the income of the beneficiary. This mode of repayment has the advantage of being both affordable and convenient.
CAN A CONTRIBUTOR OBTAIN NHF LOAN IF A MORTGAGE LOAN ORIGINATOR (PMB) IS NOT IN HIS/HER STATE?
Yes. A prospective applicant can liaise with a mortgage loan originator (e.g. PMB etc.) in Nigeria to process a loan application.
ARE THERE RESTRICTIONS AS TO WHERE A CONTRIBUTOR CAN BUILD HIS/HER HOUSE?
The property can be located anywhere in Nigeria. The applicant must however provide acceptable title documents to the land/ Property.
HOW CAN A LOW-INCOME EARNER GET COLLATERAL FOR THE LOAN?
The only collateral is the property to secure the loan for. No other collateral is needed for the loan.
HOW MANY TIMES CAN I GET NHF LOAN?
A contributor can only obtain an NHF loan facility once in a lifetime.
WHAT IS THE MAXIMUM LOAN AMOUNT AND REPAYMENT TIME FOR NHF LOAN?
A contributor is eligible to access a maximum loan amount of =N=50 million repayable over a maximum period of 30 years at an affordable interest rate of 6%.
CAN I PURCHASE NHF LOAN TO PURCHASE A PIECE OF LAND TO BUILD A HOUSE?
No. A prospective applicant who wishes to obtain a loan to build a house is expected to have his/her land as well as an acceptable title to the land prior to the application for an NHF loan.
CAN I GET THE LOAN AS AN INDIVIDUAL TO BUILD MY HOUSE OR MUST I BUY A GOVERNMENT OWNED ESTATE OR FROM A PRIVATE ESTATE DEVELOPER?
Yes. You can apply as an individual for an NHF loan to develop a land or buy directly from government consort estate or private estate developers.
CAN THE BANK FINANCE BUILDING OF STAFF QUARTERS AND STUDENT HOSTELS IN HIGHER INSTITUTIONS OF LEARNING?
The bank can finance the building of staff quarters and student hostels in Higher Institutions of Learning if they are under a registered Co-operative body which makes them eligible to access the Cooperative housing development loan (CHDL) and subsequently purchases the funded houses through NHF. Students’ hostels are currently not financed by the bank since they are transit accommodation. However, the bank is making the necessary arrangements in regard to funding of students hostels in the near future
CAN SELF EMPLOYED NHF CONTRIBUTOR ACCESS THE NHF CONSTRUCTION LOAN?
Yes, self-employed NHF contributors can access construction loan to develop their personal residential properties.
CAN RIGHT OF OCCUPANCY (R-OF-O) BE USED TO ACCESS NHF CONSTRUCTION LOAN?
Yes, R-of-O can be used as a title document on the condition that the owner will submit evidence of processing the Certificate of Occupancy (C-of-O) and the undertaking that the C-of-O will be deposited in the Bank when it is obtained.
CAN A COOPERATIVE SOCIETY APPLY FOR CHDL USING IN-HOUSE PROFESSIONALS?
Yes, a Co-operative Society can use its own in-house professionals to access CHDL as long as they are qualified professionals and possess the necessary certifications and experience.
CAN A LETTER OF GRANT ISSUED BY THE STATE MINISTRY OF LAND AND HOUSING SERVE AS COLLATERAL IN ACCESSING CONSTRUCTION AND NHF LOANS?
No, the Bank does not accept letter of Grant in accessing construction and NHF loans.
WHY IS FEDERAL MORTGAGE BANK OF NIGERIA (FMBN) NOT BUILDING HOUSES DIRECTLY FOR NHF CONTRIBUTORS INSTEAD OF FINANCING THE ESTATE DEVELOPERS?
It is not within the mandate of FMBN to construct houses directly for NHF contributors.
HOW CAN I EDIT MY PROFILE DETAILS ON THE FEDERAL MORTGAGE BANK OF NIGERIA (FMBN) MOBILE APP OR USSD PLATFORM?
Customers cannot edit their profile on these platforms however they can do this through the Update Form available on the FMBN website, or by visiting the nearest branch office for the update.
HOW CAN A CONTRIBUTOR RETRIEVE HIS/HER NATIONAL NHF PARTICIPATION NUMBER?
If you have previously registered or updated your Mobile Number with FMBN, you can retrieve your NHF Number while on the go. To commence, follow the following steps:
- – Dial *219# USSD code and Send
- – Type 3 and Send
- – Your NHF number will be displayed.
HOW CAN A CONTRIBUTOR REGULARLY GET SMS ALERT WITH HIS TOTAL CONTRIBUTIONS?
Follow the steps below to start receiving alerts with total contribution:
- – Visit the FMBN website and complete the Update Form, or by visiting the nearest FMBN Branch office to update your phone number.
- – If the above has been done, speak to a staff in the Branch office to check if the contribution schedule that has your name has been uploaded
CAN A FEDERAL WORKER ACCESS HIS/HER STATEMENT OF ACCOUNT FROM FEDERAL MORTGAGE BANK OF NIGERIA (FMBN) STATE OFFICE?
Yes, Staff in our Branch offices have access to an application to produce statement of account for Federal Workers
WHY DOES IT TAKE SO LONG FOR LOANS TO BE APPROVED AND DISBURSED FROM THEDATE OF APPLICATION?
This can be affected by 3 factors
- Primary Mortgage Bank (PMB) delay: most of the time the applications are delayed by PMBs due to their internal processes.
- Quarterly approval of Loans by the board also contributes to the delay
- Lack of availability of interim security to drawdown on the loan
WHY DOES THE BANK INSIST ON USING ONLY ⅓ OF AN APPLICANT’S INCOME FOR SERVICING NHF LOAN EVEN THOUGH HE CAN ACCOMMODATE MORE THAN ⅓ ?
This is labor law in Nigeria that no organization can deduct more than ⅓ of an applicant’s monthly income on any loan. Labour Act, 1974 stated that “any other provision of this Act, the total amount of deductions that may be made from wages of a worker in any one month shall not exceed one-third of the wages of the worker in that month”.
WHAT MEASURES ARE IN PLACE TO SAFEGUARD LOAN APPLICANTS FROM THE SHARP PRACTICES OF SOME PRIMARY MORTGAGE BANKS (PMBs)?
FMBN is working with the PMBs to harmonize all charges and to also educate applicants on all official charges.
CAN I USE A DEED OF ASSIGNMENT OR ANY LEGAL DOCUMENT AS COLLATERAL FOR NHF LOAN IN PLACE OF CERTIFICATE OF OCCUPANCY?
Yes, because Deed of Assignment is a document that transfers ownership when it is duly registered.
CAN MY PENSION CONTRIBUTION BE USED AS MY PERSONAL STAKE?
Yes, pension contribution can be used as an equity contribution or personal stake.
CAN A PERSON WORKING WITH A NON-GOVERNMENT ORGANIZATION (NGO) ENROLL INTO THE NHF SCHEME AND BENEFIT FROM IT CONSIDERING THE CONTRACT NATURE OF HIS EMPLOYMENT?
Yes, the person must be a consistent NHF contributor for at least 6 months.
WHY DO I HAVE TO WAIT TILL I AM 60 YEARS OF AGE TO GET MY NHF REFUND?
The NHF Act states that NHF contributions can only be refunded to a contributor that has attained 60 Years of Age or has put in 35 years in service.
WHY IS NHF REFUND FOR FEDERAL WORKERS AND OTHER CONTRIBUTORS NOT DECENTRALIZED?
NHF Refunds for Federal workers and other contributors are not decentralized as their contributions are centrally collected through IPPIS.
HOW DOES A SELF EMPLOYED BENEFIT FROM THE BANK’S RENT-TO-OWN (RTO) PRODUCTS?
The Rent-To-own Product is structured for the formal sector such that Rental payments will be deducted at source by the employer, as such, self-employed are not eligible to apply for Rent-To-own.
CAN A CONTRIBUTOR APPLY FOR NHF LOAN AFTER BENEFITING FROM HOME RENOVATION LOAN( HRL)?
A contributor can apply for an NHF loan after benefitting from HRL however, such contributor must have liquidated the Home Renovation Loan granted to him or her.
CAN A CONTRIBUTOR APPLY FOR HRL MORE THAN ONCE IN HIS LIFE TIME?
Yes, HRL is a revolving loan. A contributor can apply for an NHF loan upon liquidation of his or her existing Home Renovation Loan.
However, at the point the contributor owns a house through either of the Bank’s windows (NHF or RTO), he can not apply for an HRL loan any longer.
CAN A SELF EMPLOYED/ AN INFORMAL SECTOR COOPERATIVE MEMBER APPLY FOR HRL?
The Home Renovation Loan is structured for the formal sector such that the loan repayment will be deducted at source by the employer, as such; an Informal Sector Cooperative member and self-employed individuals are not eligible to apply for Home Renovation Loan.
