The Real Estate Developers Association of Nigeria (REDAN) has highlighted that high mortgage interest rates are a major barrier to housing affordability, especially for low-income civil servants.
In an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja, REDAN President Akintoye Adeoye expressed his concerns about the escalating mortgage rates in the country, noting that it has become exceedingly difficult for low-income earners to purchase homes.
Adeoye pointed out that while REDAN members are actively constructing mass housing projects at affordable estates across various states, many low-income civil servants still face significant challenges in homeownership.
He stated, “Mortgage rates in Nigeria generally exceed 20 percent, which makes it nearly impossible for low-income earners to secure home loans. REDAN has consistently advocated for solutions to this issue.”
REDAN has consistently pushed for lower mortgage rates, ideally between two to six percent, to improve affordability and promote home ownership among civil servants.
“Unfortunately, the current financial environment still poses challenges for many seeking affordable financing,” he stated.
The President of REDAN pointed out that, at present, the Federal Mortgage Bank of Nigeria (FMBN) is the sole institution providing affordable mortgages at a rate of six percent.
This is why REDAN has repeatedly advocated for the bank’s recapitalization, enabling it to secure additional funds and offer more affordable mortgage options for Nigerians.
“If there is one significant issue impacting housing today, it is the accessibility of mortgages,” he emphasized.
“Without a functional and accessible mortgage system, many Nigerians will remain unable to purchase homes.
“The lack of affordable housing finance continues to be a significant obstacle in the real estate sector..
