Our Special Guest on week 11 of The Property Show on Inspiration 92.3FM was Mr Akinola Kojo Sagoe, Executive Secretary at Lagos State Mortgage Board and the theme of the show was Property Financing with a focus on Lagos Home Ownership Mortgage Scheme (Lagos HOMS).
Click here to listen to a studio record of the show or continue reading for a quick summary.
About the Lagos State Home ownership Scheme…
The Lagos HOMS is an initiative by the Lagos State governor, His Excellency Babatunde Raji Fashola as part of a process of wealth creation and home ownership for residents of the state. In an effort to ease the pressure of owning a property, the scheme gives beneficiaries a minimum of 10years for mortgage loan repayment with a fixed interest rate of 9.5%. The features of the loan make it more attractive than the mortgage loans offered by banks which typically have about 21% interest rate or higher.
Another unique feature of Lagos HOMS is that it allows joint application; a husband and wife can jointly apply for a mortgage to purchase a property. It is hoped that the introduction of this unique feature will further ensure its affordability by all residents of the state without regards to class or income.
Applying for Mortgage through Lagos HOMS…
The Mortgage is meant for everybody; ranging from market women, artisans or the working class individuals. Those who don’t have a regular income can also take part in the initiative as long as they can show evidence of their ability to meet up with monthly payment over the years. Also, there is a required down payment of 30% of the value of the property. According to the law, individuals are meant to use no more than 33% of their income to service their mortgage, thus, applicants for this loan must ensure their income can adequately cover repayment. Provisions have been made to cater for the various disparities in income so that individuals can have access to properties they can afford. For instance in Epe, there are properties for N3.1m, which is the cheapest offer and N16.84m in Shitta, which is the maximum value on offer for now.
The process for applying for a mortgage loan through Lagos HOMS is as follows:
– Apply online on www.lagoshoms.gov.ng
– A prequalification is done by checking your documents and the ability to afford repayment
– A live draw is done. Names of prospective beneficiaries are picked from the prequalified applicants
– The beneficiary chosen during the draw is expected to forward documents to Lagos State Building Investment Company. Here, an appraisal is carried out on all financial documents.
– The deed of seal, deed of assignment and all the legal documents are signed after which new owners can occupy their property.
Mortgage restrictions…
Applicants are required to look for properties belonging to Lagos HOMS which are situated across Lagos. Presently, Lagos HOMS has buildings in Shitta in Surulere, Shoguro – Ogba, Obeleoniwala in Surulere, along Lekki axis, Badagry and Ikorodu with buildings expected at Ilupeju shortly.
Requirements for Pre-qualification…
An applicant for a loan through Lagos HOMS does not have to be an indigene of Lagos State. If you are looking to apply for a loan through Lagos HOMS, simply ensure you meet the following requirements:
1. Must be resident in Lagos State
2. Must have registered with Lagos State Residents Registration Agency (LASRRA): This is a tenable proof that you reside in Lagos.
3. Must be a first time property buyer
4. Must be a tax payer: Properties are built using tax payers money, so you must be seen to have paid your tax for a period of 5 years continuously.
5. Must be over 21 years old
6. Must be able to show ability to service the loan through repayment.
Transparency of property allocations…
In order to ensure transparency of the procedure for selecting beneficiaries of Lagos HOMS, the draws are televised live. This way, the government will ensure that you don’t have to know anybody before you become a beneficiary of the scheme.
Dealing with loan defaulters…
As to addressing defaulters when they fail to make payments, foreclosure proceedings will be initiated just like every other mortgage scheme if first, second, and third payments are missed. Beneficiaries are therefore advised to contact LBIC soon enough if there will be problems with payment so that mortgage can either be canceled or restructured.
About Akinola Kojo Sagoe
Mr Akinola Kojo Sagoe is a Wharton Business School graduate with over nineteen years cognate experience, thirteen of which were served in management positions. During this span of time, his roles have covered Mortgage Financing, Mortgage Servicing, Business Development, Risk Management, Project Management, Business Analysis and Software Development with extensive job specific training in International Housing Finance, Social Housing, Securitization and Mortgage Bonds.
About The Property Show
The Property Show is a weekly real estate radio show with www.privateproperty.com.ng which airs live every Tuesday at 5PM on Inspiration 92.3FM and is hosted by popular OAP Ms. Wana Udobang (Ms. Wana Wana).
The Property Show comprises a 15-minutes interview with a Special Guest that will enlighten listeners on selected real estate topics and issues. Also, there is a 15-minutes phone in segment that enables listeners of the show make enquiries and receive expert advice from a pool of real estate experts and professionals.
Join us again next week for another interesting show.
