Federal Mortgage Bank Guide – How Do I Access My Federal Mortgage In Nigeria? Getting access to federal mortgage loans in Nigeria is not a rigorous process. All you need to do is follow this article to stay up to date on everything you need to know to gain entry. However, the federal mortgage loan package includes; Home renovation loan, a homeowner’s rent arrangement, and so on. That is why it is important to know your specific needs for a federal mortgage loan before proceeding with getting one.
By reading this article, you will find out what you need to know about the Federal Mortgage Loan in Nigeria.
About Federal Mortgage Loans in Nigeria
They founded the Federal Mortgage Bank of Nigeria (FMBN) in 1956 before adopting the status of top mortgage institution for Nigeria in 1994. Since then, they have maintained and monitored the National Housing Fund, a contributing savings system (NHF).
The NHF is a social savings project that aims to raise money in the long term to provide low-interest loans to taxpayers.
It is one of the main responsibilities of FMBN. The National Housing Fund Act 3 of 1992 regulates federal mortgage bank loans in Nigeria.
They enacted the scheme by Act 3 of 1992. It is aimed at Nigerians in all sectors of the economy. Mostly those within the low and middle-income levels. Helping people who cannot afford commercial real estate loans to buy a home. They would achieve this by contributing 2.5% of their monthly salary to the Federal Mortgage Bank of Nigeria, the fund’s manager. You can read about the Assignment Deed
What is the Federal Mortgage Bank of Nigeria?
A mortgage bank is a financial institution that specializes in providing mortgages. They can involve you in both entering into and maintaining mortgages. Mortgage banks lend their own money to borrowers and receive installments at a fixed interest rate or sell their loans on the secondary market.
Now we all agree on the meanings of Federal Mortgage Loan Nigeria and Mortgage Bank respectively. We now show you everything you need to know to access it.
Who Qualifies for a Federal Mortgage Loan?
Before you could get a chance to successfully get a loan. You must be eligible to apply. To be eligible for a Federal Mortgage Loan in Nigeria, you must:
- You must be at least 18 years old.
- You use the forms NHF 1 (employer) and NHF 2 (employee) to register.
- Must transfer monthly contributions deducted from FMBN immediately (must be at least 6 months in contributions)
- Employers must update the passbook, which can be transferred from one job to another.
- You must have contributed to the Fund for at least six (6) months.
- To ensure the repayment of the loan, the applicant must demonstrate that they have a steady stream of income.
How to Apply for a Federal Mortgage Loan?
How do I access my federal mortgage in Nigeria? Unsurprisingly, you have to apply for a loan before you get it. If you need a loan, all you have to do is go after it.
Here’s how to apply for the Federal Mortgage Loan Nigeria:
- Institutional borrowers can apply directly to the Federal Mortgage Bank of Nigeria (FMBN)
- Individuals can only apply through a fully licensed Primary Mortgage Bank (PMB) of their choice. However, you cannot apply for the loan directly through FMBN.
- You must apply for a loan from the same Main Mortgage Institution.
- To be able to use the Federal Mortgage Loan, you must have registered your main mortgage institution with the FMBN.
What is the procedure for registering a federal mortgage loan?
NHF Act No. 3 of 1992 requires all Nigerian workers, whether self-employed or employed, to contribute 2.5% of their base salary/income to the fund.
The registration procedure is:
- Employers will receive an Employer Registration Form (NHF1) from the Federal Mortgage Bank of Nigeria (FMBN).
- Employers will complete form NHF1 and return it to the nearest branch of the Federal Mortgage Bank of Nigeria.
- They will register the employer with the Federal Mortgage Bank of Nigeria and assign them an employer registration number.
- The Federal Mortgage Bank of Nigeria would provide the NHF2 form to employers for employees to complete. Or directly for freelancers or individual customers.
- The employee completes the NHF2 form and sends it to the company.
- The Federal Mortgage Bank of Nigeria receives the completed NHF2 form from the employer or self-employed.
- The FMBN will register employees on Form NHF2 and assign each employee/self-employed person a participation number.
- Federal Mortgage Bank will provide each registered employee with a passbook in which the employer records the monthly deduction from their basic income of 2.5%.
- After that, they can now consider an employee as a registered participant in the National Housing Fund.
- The employer deducts premiums at the source. They then send such deductions/contributions to the Federal Mortgage Bank of Nigeria. And it keeps a payment schedule detailing the amount each employee contributed and the time covered.
- They send monthly contributions from autonomous participants to the FMBN.
- The Federal Mortgage Bank of Nigeria will receive contributions and provide proof of payment.
How much can you request?
The federal mortgage loan, like any other loan, has the maximum amount you can get. Therefore, for this federal mortgage loan, a borrower can qualify for a maximum loan of N15 million. However, the borrower’s bank may advise otherwise. But they are not allowed to give credit to anyone for more than 90% of the value of the mortgaged property. You can read about investing in real estate
What is the Federal Mortgage Loan Interest Rate in Nigeria?
Every loan has an interest rate. However, the National Housing Fund Act regulated the interest rate for the federal mortgage loan. It is no more than 6% per year.
What is Federal Mortgage Property?
Every loan agreement states when the lender expects you to repay the debt. You can repay a federal mortgage loan in up to 30 years. Individual borrowers must therefore repay their loans through the main mortgage institution from which they obtained them.
Federal Mortgage Bank follows a concept that seeks groups with financial and technological capabilities interested in providing low-income affordable housing to the low-income market.
How do I check my monthly contribution to the National Housing Fund?
It is nice to be kept informed of your monthly contribution as a subscriber to the National Housing Fund. Plus, you’ll be reassured to know that your contributions are on the right track. Subscribers can check the status of their contributions for any month in the current calendar year. This is to verify that the scheme has received your monthly donations.
You can check your monthly allowance from the National Housing Fund in the following ways:
Federal Mortgage Bank USSD code
Usually, you want to know if they have submitted their contributions. The Federal Mortgage Bank of Nigeria has introduced the USSD code. This code allows you to complete your mortgage financial transaction without going to a mortgage institution for verification.
The USSD CODE to be used to perform these transactions is *219#. At work or at home, you can check contact information, get a statement of account, access the business board, and use the mortgage calculator.
To check your monthly contribution, all you need to do is:
- Dial *219# and send
- Enter 2 and send
- Enter 1 and send
- Enter the exact month from 1 to 12 and submit.
Note: You can enter “00” in any of the submenus to go “Back” to the previous screen. Or you can select the “Cancel” button to exit the service.
2. Federal Mortgage Bank App
You can also check the status of your contribution in the FMBN Mobile app.
All you have to do is:
- Download the Android version of the FMBN Mobile app from the Google Play Store. Or buy your iOS equivalent from the App Store. Download Federal Mortgage Bank App here.
- From there, create an account with your information data and enjoy all transactions from your comfort zone.
Can I correct my profile information on the FMBN Mobile App or the USSD platform?
You may have entered the wrong information in your profile and need to edit it (in the FMBN Mobile App or the USSD platform). And that’s why you’d want to edit it. Please note that you cannot edit your profiles on these platforms. However, you can do this by completing the update form on the FMBN website or by visiting your local branch.
How can I request my National House Fund NHF number?
After seeing how you can check your monthly contribution to the National Housing Fund. You can also request your NHF number if you have already registered your mobile number with FMBN. To reclaim just the National House Fund:
- Dial *219# and send
- Enter 3 and send
- Click the “Cancel” button to terminate the service.
What does a federal mortgage bank do?
What is the function of the Federal Mortgage Bank of Nigeria? Federal mortgage banks in Nigeria have several roles to play. They contain:
- The Federal Mortgage Bank provides long-term mortgage lending services in Nigeria. They offer them along with fees that allow banks and mortgage companies to provide loans to individuals. Mostly those who want to have their own home.
- At the federal, state, municipal, and even state levels, it encourages and promotes the creation and development of mortgage institutions.
- It encourages the development of long-term secondary mortgage institutions to meet the housing needs of Nigerians.
- Secondary Mortgage Institution Licensing in Nigeria is what the Federal Bank of Mortgages of Nigeria grants.
- Supervises and monitors the activities of Nigerian mortgage lenders.
- It collects and maintains National Housing Funds by the provisions of the National Housing Fund Act.
- Federal Mortgage Bank is also the link between the mortgage market and the capital market. Also mobilizing local and foreign investment for housing.
- To achieve its objectives, the bank occasionally develops innovative mortgage-related programs and products.
What are the benefits of getting a federal mortgage loan in Nigeria?
There are some benefits you can get by getting a federal mortgage loan. They contain:
- Comes with a mortgage of up to 90% of the cost of the house.
- They set the mortgage interest rate at 6% per annum. during the term of the mortgage.
- It has a long repayment term of up to 30 years.
- Contributions can contribute to more security in retirement.
- You can borrow a maximum of N15 million.
- Repay with 2% interest on retirement.
- Paying off a loan is comparable to paying a regular monthly rent.
- A lifetime registration number, passbook for recording personal contributions, and account statement are what they provide for each contributor.
What are the contact details of the Federal Mortgage of Nigeria?
For more information about Federal Mortgage, please contact the Federal Mortgage Bank at:
- Federal Mortgage Bank of Nigeria
- 266 Cadastral AO, Central Business District.
- PMB 2273 Garki, Abuja. Nigeria
- 09-2920689, 09-2920690, 09087973000, 08170237904.
Hopefully, you already know that there are several loan products for different purposes. They designed the federal mortgage loan primarily to build, buy, or renovate homes. The Federal Mortgage Bank of Nigeria is now partnering with mortgage institutions. Most people with the technical and financial skills to provide affordable housing to people with low and middle incomes. It seems for a reason that the federal mortgage loan covered you to get the house of your dreams. It would be nice to try.