•Impressed celebrities vow to key into National Housing Fund

The Managing Director and Chief Executive Officer (MD/CEO) First Home Mortgage Brokers, Mrs. Olajumoke Fashanu, has emphasised the importance of home ownership and challenges of mortgage financing.

The chartered accountant with keen interest in real estate development and management who stated this during a courtesy visit to the Celebrity Come Build Reality TV Show noted: “Mortgage is not new in Nigeria, but there is a challenge. If there were more people coming up to share their testimonies and experiences, people would embrace it more. Mortgage is actually a bridge between your desire and the actualisation of your dream. It’s no longer real in our time and someone will have N10 million cash in a Ghana-must-go bag to procure a home. Everybody deserves to have, at least, a roof over their head, everybody deserves their dream to be actualised and a mortgage is what will help you to do that. So how do you go from someone who is just dreaming to someone who can live their dream? You need a mortgage broker.”

According to her, “A lot of people know about mortgages, but they don’t know about mortgage brokers. Mortgage brokers work for you, the individual. We ascertain your affordability; based on your affordability we know the value of property you can afford. So we give you options among those that are possible and available. We also walk you through the product that’s most suitable for you. Once you have those things in place, you can start inviting your friends for house warming.”

Mrs Fashanu, who has over 20 years on-job experience in the housing market and real estate sector in Nigeria made outstanding marks within the Finance, Business Development and Mortgage Banking sub-sector of the real estate industry, expressed her excitement to meet the celebrities one-on-one.

“I’m here to say thank you for all you do for your career and profession to make us happy, to make us laugh and we can’t say thank you enough; and to say thank you as you take out time out of your busy schedule to get your hands dirty. One thing I am sure of is that after this experience, all of you will be involved in property development, because there is something about bricks and mortar, you will just fall in love with it. Especially, the fact that you build homes for people to live in; I am sure we’ve already gotten that,” she said.

In sharing her mortgage ideas with the celebrities, the MD/CEO told them to tell people that mortgage is real in Nigeria. “Mortgage is old in Nigeria, more than 60 years old, but people hide when they procure a mortgage, they pretend even to their families that they bought the property with cash whereas there is nothing to be ashamed about. So mortgage is real in Nigeria.

What are the three most important things that you need to do? She explained: “First, you need a mortgage broker. A broker works for you. Not even for any mortgage bank or institution. If anybody works in a particular institution you know they have been selling the product for you. What we do is ascertain your affordability; based on your affordability we are able to tell you the value of the mortgage you can take, tenure and most suitable product for you. One thing that people do not realise is: you can’t just wake up and that is part of the challenges in the scene, you know we like the fire brigade approach. In developed economies, when you are a teen, your parents are already asking you when you are moving out, otherwise you will be sharing part of the bill; you can’t live for free.

“So it means that if you are in college; as you are coming out, you are already opening a mortgage account to put in money little by little. So, anyone that will procure a mortgage must have what we call equity contribution, which is your own part in the property. But, for most of it, if you want a property of N5 million, you’ll need N500,000 in savings. You have to build up something you have to prepare for.”

Mrs. Olajumoke Fashanu who is a member of the Institute of Directors; Council member, The Certified Pension Institute of Nigeria; Council member of The Lagos Chambers of Commerce & Industry and board member, Lagos International Trade Fair highlighted some challenges. “Another challenge that we normally have is when we do the pre-qualification transacting your affordability, for most people who their affordability is N5 million: guess what? They want to be in Lekki Phase 1 and take it personal that they have four wives, three wives: how do we want to do that? People don’t like to stay in their affordability.

“If I ask everybody what kind of car was your first car? My first car ever had smoke coming in from the engine and the boot; till now, I don’t know what was bringing out the smoke from the boot (Ruggedman answered, ‘the exhaust’); that may be it, but I had that as the first car. So when people by cars they prefer to upgrade; even if you ride a G Wagon, your first car is not a G Wagon. Yet, when it comes to home ownership, they don’t want to grow. If I take your affordability and I say this beautiful estate is where you can afford. It’s only very few people that can reason and reciprocate it, a lot of people will say ‘no, I want Lekki Phase 1, Oniru Estate, Maryland, Ilupeju,’ which is not realistic.”

“How does Mortgage work? The First Home Mortgage boss explained: “The earlier the better; if you are 30 years old, you actually can procure a 30-year-old mortgage. Assuming someone is paying N15 million for 30 years: it’s good for the younger generations.”

She continued: “Another thing that people do not know about mortgage is it goes beyond providing you with a roof. Mortgage is actually a tool to impact your network. We have a client; herself and her husband live in a three-bedroom in Surulere; the property they took on mortgage is in Banana Island. So, the rent the tenant is paying pays the mortgage, sends their children to school abroad; so you don’t even need to live there. Mortgage is doable, your tenure comes longer the younger you are.

“If you have the money, assuming you take a mortgage for N10 million, your equity is N1 million, taking into consideration some of you are landlords you can pay back when you have it, there is no penalty for quick payment. Being a Nigerian is nothing to regret at all, every Nigerian that resides in this country can access the National Housing Fund. The National Housing Fund is everybody’s national cake; you take it once in a lifetime and the interest is 6 per cent per annum, but you have to be a subscriber to the scheme. Maximum monthly remittance for people that work is N3,000/N4,000 monthly basis; and that’s your savings that when you retire or when you are 60 you collect back as interest.”

Olajumoke states reasons why a lot of people think mortgages are not real. “Nigerians like raw cash, so everybody that wants to access the mortgage even under the scheme that are several houses already built that you can collect your key, everybody would later collect the equivalent of N15 million, which is the maximum so that they can go and build a property with 5 million, the wife will be the bricklayer, they will be plumber, their children will be the tiller, just to save cost. Whereas when you are building by your own sweat, even you like change the plumber, when the next rainy season comes it sweeps everything away and we just say sorry. But when it’s a mortgage, the house must be of good quality because the mortgage must be a mortgage of 30 years.

“A lot of people also are afraid that if I take out a mortgage and I die, I’ve done house warming, so my children and my wife will be left stranded, then people would mock my wife that we come for house-warming and they give us small rice with chicken. But we have mortgage insurance which is compulsory, it is an insurance policy saying that even if the person that takes the mortgage dies, you’ve paid the premium once in a lifetime; if the person dies the insurance company will pay, so there is nothing to be afraid of.

“If you don’t take a mortgage you can build yourself; a lot of people still think if they build themselves it will be cheaper. But that is a lie, because you will be paying for your material which might be stolen on site or your workmen can run away, you spend more than your quotation at times due to market prices changing, and also design might be outdated before you finish building your house. But if you take in a mortgage even if the value of the building increases you are at gain once you’ve taken your mortgage for a particular amount. In a nutshell, a mortgage is a tool for capital appreciation. Mortgage is a must for everybody.”

After her lecture in the heavy downpour, the celebrities were shocked to know the existence of the National Housing Fund and vowed to key into it as soon as possible and to tell their colleagues as well.

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