The FMBN NHF Mortgage Loan provides up to N15million at a six percent interest rate to NHF subscribers to own their dream homes.
ABOUT THE FMBN NHF Mortgage Loan
- Mobilization of funds for the provision of affordable residential houses for Nigerians.
- Commercial and Merchant Banks to invest 10% of their loans and advances portfolio.
- Insurance Companies are mandated to invest 20% of non-life and 40% of life funds in the housing sector with 50% of these directly in the funds.
- Financial contributions of the Federal Government.
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- Mandatory contribution of 2.5% of monthly income of Nigerians earning =N=3000 and above per annum.
- Commercial and Merchant Banks to invest 10% of their loans and advances portfolio.
- Insurance Companies are mandated to invest 20% of non-life and 40% of life funds in the housing sector with 50% of these directly in the funds.
- Financial contributions of the Federal Government.
- Housing loan of up to 90% of the cost of the house.
- Interest on loans remains fixed throughout the life of the mortgage at 6% p.a.
- Long period of repayment of up to 30 years.
- Contributions can serve as additional old age security.
- Up to N15 million can be borrowed.
- Refunds with 2% interest on retirement.
- Loan repayment is about the same as a typical monthly rent.
- Every contributor has: a lifetime registration number, a passbook for personal recording of contributions and the account statement.
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- Registration via NHF 1 (employer) and NHF 2 (employee) forms.
- Deducted monthly contributions remitted to FMBN promptly (At least 6 months contributions should be made)
- Passbook to be updated by an employer and is transferable from one employment to the other.
- Yearly statement of cumulative contributions plus accrued interest
- Apply through any accredited Primary Mortgage Bank(PMB)
- Applicant must provide satisfactory evidence of regular income.
All Nigerians in employment, whether self-employed or in paid employment, are required by the NHF Act No.3 of 1992 to contribute 2.5% of their basic salary/income to the fund. The procedure for registration is as follows:
- The Federal Mortgage Bank of Nigeria (FMBN) will supply Employer Registration Form (NHF1) to employers.
- Employers will complete form NHF1 and return to the nearest branch of the Federal Mortgage Bank of Nigeria.
- Federal Mortgage Bank of Nigeria will register the Employer and issue an employer’s registration number.
- Federal Mortgage Bank of Nigeria will issue form NHF2 to employers for completion by employees or directly to self-employed or individuals.
- An employee will complete the form NHF2 and return it to the employer.
- The employer or self-employed individuals will return the completed form NHF2 to the Federal Mortgage Bank of Nigeria.
- Federal Mortgage Bank of Nigeria will register Employees on Form NHF2 and allocate employees’ participation number to each employee/self-employed individual.
- Federal Mortgage Bank will issue a passbook to each of the registered employees where the monthly deduction of his/her 2.5% basic salary will be posted by the employer
- At this point, an employee is now a registered participant of the National Housing Fund.
- Employer will commence deduction of contributions at source. Such deductions/contributions are remitted to the Federal Mortgage Bank of Nigeria with schedule of payment indicating the amount contributed by each employee and the period covered.
- Self–employed contributors will also commence monthly remittances of contributions to FMBN.
- Federal Mortgage Bank of Nigeria will accept contributions and issue receipts for payments.
- Refund is made to a contributor who has attained 60 years of age or has put in 35 years in service.
- Refund is also made to a contributor that has obtained a loan, liquidated the loan and has attained the age of 60 years or has put in 35 years in service.
- Retired from employment and becomes incapable of continuing the contribution to the Fund.
- For applicants from the underlisted professions, the retirement ages are as stated below:
- – Professors, Judges, and Medical Consultants – 70 years of age
- – Academic, Non-Academic Staff, Judicial Staff – 65 years of age
- – Military Officers – 62 years of age
- Refund is made to the next-of-kin of a contributor in case of a deceased contributor.
Documents required for refund of contribution
- Application letter requesting for refund of contribution.
- Letter of offer of appointment.
- Birth certificate or Declaration of age certificate.
- Completed NHF Contribution withdrawal forms.
- Bank Account details through which refund would be paid.
- Medical report of incapability to continue contributions due to failing health
- Letter of administration & Death Certificate (in case of a deceased contributor)
- Evidence of contribution. (Receipt for self-employed contributor)
- Biometric Verification Number (BVN)
How to Apply
Interested Nigerians should visit FMBN NHF Morgage Loan and apply
