What you need to know about the Federal Mortgage Bank

We’ve watched movies and we’ve at one point or the other heard of a mortgage, or a mortgage down payment, mortgage rates, and if you’ve been keeping track of the news you might have heard references to the 2008 financial crisis “that rocked the world”.  Mortgages are very important parts of investment portfolios of many people worldwide who own or invest repeatedly in real Estate.  With a Mortgage, you can buy multiple homes to flip, or you build or purchase your dream home where you’d raise your 5 kids over the next two and a half-decade.

Now the next question to answer would be, “How can I get a Mortgage?”, before we’d answer this question let’s understand what a Mortgage is.  A Mortgage is a credit facility issued by a financial institution for the purpose of developing or acquiring a real estate property or landed property at interest over a very long period of time.  Now you might be apprehensive about getting a loan but credit is a very important part of funding investments and business ventures.  To get a Mortgage there are many financial institutions called primary Mortgage Banks offering these kinds of credit but for this article, we would be looking at the Federal Mortgage Bank and important things to note.

The Federal Mortgage Bank was founded in 1977 under the Military Government of Gen. Olusegun Obasonjo.  Formally the Mortgage agency prior, was the Nigerian Building Society established in 1958 and between that time and 1978 it was the only Mortgage institution functioning in Nigeria.  Now the Federal Mortgage Bank is the Apex Mortgage institution in Nigeria and the regulatory body of other Primary mortgage Institutions in Nigeria

There are now 20 accredited primary Mortgage banks in Nigeria and the Federal Mortgage Bank has what is called the National Housing Fund.   To understand the  National Housing fund;  think of it as a huge pool of money you get to swim in at the age of 21 if you have a steady job and regularly put some money into the huge pool.  Once you meet these requirements you have access to 15 million naira with an annual interest rate of 6% for the next 30 decades.  This is a sweet deal that can help jump-start the process of building your Real Estate portfolio or getting your dream home.

This is by no means all you need to know, there is so much more you would need to know, therefore you must consult a seasoned professional and your Bank for further details and to plan and recommend the right kinds of Mortgages that suits you and your needs.