FMBN launches interest-free mortgage product

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The Federal Mortgage Bank of Nigeria has announced the introduction of an interest-free lease-purchase mortgage product.

The bank said the product was designed to help Nigerians obtain interest-free mortgages to own their homes.

In a statement, FMBN Managing Director/General Manager Ahmed Dangiwa said, “I am delighted that we have been able to resolve this decades-old issue.

“For more than 30 years, a significant number of the over five million Nigerians who contribute to the National Housing Fund Scheme have been prevented from enjoying their entitlements due to the interest-based nature of FMBN housing products.

“What we’ve done with this product is create a funding agreement that acknowledges, respects and addresses their genuine concerns around inclusion.”

The bank added that its new product would eliminate the challenges faced by eligible Nigerians who wish to become homeowners through the National Housing Fund Scheme due to the interest-based nature of the bank’s existing housing products.

He added that the financing structure of the product is based on Ijarah Muntahia Bittamleek’s interest-free financing contract (Lease to Own) and under the arrangement he will retain ownership of the property until the end of the finance term or at any time during the lease period. that the beneficiary wishes to purchase the property.

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