Mortgage Opportunities in Anambra And It’s Lack of Awareness among Anambra Realtors Highlighted.
Mortgage Opportunities in Anambra – In a surprising discovery, it has come to light that many realtors and estate managers in Nigeria, particularly in Anambra State, lack a comprehensive understanding of mortgages. Despite inquiries directed at Anambra realtors and estate managers, none were able to provide details about mortgage processes. Even top realtors in Anambra, who were indirectly approached, mostly ignored the question. This ignorance is not due to their unwillingness to respond but rather reflects a lack of knowledge about mortgage practises or the absence of well-established mortgage practises in Anambra State.
Federal Mortgage Bank launches 180 housing units.
However, recent research has revealed that the Federal Mortgage Bank of Nigeria (FMBN), situated at No. 5 Nnamdi Azikiwe Avenue, Awka, with P.M.B. 6024, has launched an impressive housing initiative in Anambra State in early 2023. The project, consisting of 180 housing units, is located at Nkwele Ezunaka, adjacent to Hillview Estate. This development is a collaborative effort between the FMBN and the Nigerian Organised Labour, specifically designed to provide mortgage opportunities for Anambrarians and residents.
Now, let’s understand what mortgages are, their benefits, and why they should be encouraged in Nigeria and specifically in Anambra.
What is a mortgage?
A mortgage is a loan extended by a financial institution, such as a bank, enabling individuals or businesses to acquire real estate properties. The property being purchased serves as collateral for the loan. In the event of non-repayment, the lender has the right to seize and sell the property to recover the borrowed funds.
Benefits of Mortgages:
The primary advantage of a mortgage is the opportunity it offers individuals to afford a property that would otherwise be beyond their means with available funds. Rather than paying the full price upfront, borrowers can make regular payments over an extended period, typically ranging from 15 to 30 years. This enables people to realise their dream of homeownership while managing the cost over a more feasible timeframe.
Reasons to Encourage Mortgage Opportunities in Anambra
1. Homeownership: Mortgages provide a viable path to homeownership, allowing individuals and families to establish stability, security, and equity. Owning a home offers benefits such as stability, potential property value appreciation, and the ability to customise or enhance the property according to personal preferences.
2. Investment: Real estate has long been regarded as a reliable long-term investment. Encouraging mortgages enables individuals to leverage their funds and potentially benefit from the appreciation of the property’s value over time, fostering wealth accumulation and financial security.
3. Economic Growth: A thriving real estate market is crucial for overall economic growth. By promoting mortgages, we stimulate housing demand, leading to construction and renovation projects and generating employment opportunities in related sectors. A healthy housing market significantly contributes to broader economic development.
4. Access to Credit: Mortgages provide access to credit for individuals with limited savings or liquid assets to purchase a property outright. By qualifying for a mortgage, borrowers can leverage their income and creditworthiness to obtain financing, fulfilling their housing needs.
5. Tax Benefits: In many countries, mortgage interest payments and property taxes are tax-deductible, reducing the overall tax burden for homeowners. These tax incentives promote homeownership and provide additional financial advantages for mortgage borrowers.
While mortgages offer several advantages, it is crucial to note that they entail financial responsibility and necessitate careful consideration of one’s ability to repay the loan. Lenders typically assess borrowers’ financial stability, creditworthiness, and ability to make regular payments before approving a mortgage.
In conclusion, the presence of mortgage opportunities in Anambra State real estate sector has been affirmed by the recent launch of 180 housing units by the Federal Mortgage Bank of Nigeria (FMBN). This housing project, situated in Nkwele Ezunaka within the Hillview Estate, was developed in collaboration with the Nigerian Organisation of Labour to facilitate mortgage accessibility for Anambrarians and residents of the state.