What is Mortgage loan, who accesses mortgage laon in Nigeria? Does mortgage loan even exist in Nigeria?
Why is the subject of mortgage loan not very popular and not widely discussed in a country that needs massive housing projects to meet shortfalls? What does it take to access mortgage loan and why should anyone care about mortgage loan?
These questions became very pertinent after I listened to some chaps discuss the matter with some unguarded passion. I kinda agreed with some of their points. I haven’t seen any concerted efforts by the operators of Mortgage banks in creating awareness about their business and operations. No meaningful communication is out there, either on radio or TV, the two most popular mass media in Nigeria. Even politicians who are quick to promise low cost housing and cheaper Mortgage loans hardly discuss the subject as soon as they assume office. Why?
I am tempted to go with the school of thought that believes that mortgage loans or financing or whatever name you want to call it is a huge charade in Nigeria. It tends to exist more in the manifestos of political parties and Economic textbooks. We know what happens to Manifestos once elections are won and lost.
Having said all that, I have to say here, that Mortgage loans truly exist in Nigeria even if there’s no mass communication on the subject.
In case you are new to the subject, please digest the information below.
According to Investopedia,
A mortgage is a debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large real estate purchases without paying the entire value of the purchase up front. Over a period of many years, the borrower repays the loan, plus interest, until he/she eventually owns the property free and clear. Mortgages are also known as “liens against property” or “claims on property.” If the borrower stops paying the mortgage, the bank can foreclose.
An explanation from Business Dictionary explains mortgage this way
A legal agreement that conveys the conditional right of ownership on an asset or property by its owner (the mortgagor) to a lender (the mortgagee) as security for a loan. The lender’s security interest is recorded in the register of title documents to make it public information, and is voided when the loan is repaid in full.
Virtually any legally owned property can be mortgaged, although real property (land and buildings) are the most common. When personal property (appliances, cars, jewelry, etc.) is mortgaged, it is called a chattel mortgage. In case of equipment, real property, and vehicles, the right of possession and use of the mortgaged item normally remains with the mortgagor but (unless specifically prohibited in the mortgage agreement) the mortgagee has the right to take its possession (by following the prescribed procedure) at any time to protect his or her security interest.
So are you interested in Mortgage now? Here’s more information from First bank on how to go about it
Who Can Apply
Employees in paid employment and self-employed professionals.