FirstTrust Mortgage Bank unveils N250m mortgage suite to expand homeownership

FirstTrust Mortgage Bank has unveiled a suite of tailored mortgage and real estate development solutions in a strategic push to bridge Nigeria's housing deficit and expand access to property financing, with facilities of up to N250 million and extended repayment tenors of up to 20 years.

The products include an Outright Purchase Mortgage, an Outright Purchase Mortgage under the Nigeria Mortgage Refinance Company (NMRC) framework, a Construction Mortgage, Construction Finance and Equity Release.

The Outright Purchase Mortgage provides financing of up to N250 million with a tenor of up to 10 years for individuals seeking to purchase completed properties, requiring an equity contribution of 20 percent for salary earners and 30 percent for self-employed applicants, alongside an option for joint mortgages between spouses. For customers seeking longer repayment periods, the NMRC-backed product offers a tenor of up to 20 years with an obligor limit of N50 million, at 20 percent equity for salary earners and 40 percent for self-employed applicants.

The Construction Mortgage facility offers a tenor of up to 10 years with milestone-based tranche disbursements and can also be used as completion finance for unfinished projects. For corporate entities and commercial developers, Construction Finance funds housing estate development for up to three years, mandating a 50 percent equity contribution alongside adequate collateral and life insurance coverage of at least 50 percent of the principal.

Under the Equity Release facility, existing property owners can access up to 70 percent of their property's Open Market Value, subject to a maximum limit of N200 million, with no additional equity contribution. "These products were developed to remove barriers to homeownership and to support developers in delivering quality housing," said FirstTrust Mortgage Bank Managing Director and Chief Executive Officer, Dr Korede Adedayo.