A Journey to Become Landlords
Explore CBN’s newly released list of 43 approved mortgage banks. Empower your journey to becoming a Nigerian homeowner.
CBN Releases Comprehensive List of 43 Approved Mortgage Banks for Nigerians
The Central Bank of Nigeria (CBN), a titan in the country’s banking sector, recently unveiled a list of 43 approved mortgage banks. This monumental decision stands to significantly increase access to mortgage finance for Nigerians, providing a solid pathway to property ownership.
The Purpose of the Mortgage Banks
These banks, including notable entities like the Nigerian Police Force (NPF) and the First Bank of Nigeria (FBN), will cater to the pressing need of residential and commercial property acquisition, renovation, and construction across the country. Consequently, it marks an important step towards empowering Nigerians to become landlords.
Understanding the Roles of the Institutions Involved
The Nigerian Deposit Insurance Corporation (NDIC) has been instrumental in releasing this vital list. They play a pivotal role in ensuring the deposits of customers in these banks are safeguarded, thus instilling confidence in potential mortgagees.
CBN Guidelines for Mortgage Banks
The CBN has set clear guidelines to shape the conduct of these mortgage banks, underlining permissible and non-permissible activities. This framework aims to maintain a healthy and beneficial mortgage banking environment for all stakeholders.
Primary Mortgage Banking Activities
Primarily, the mortgage banking business involves granting loans to customers to purchase, renovate, or construct real estate properties. Moreover, the banks can engage in real estate construction finance, accept savings, demand and time/term deposits, provide financial advisory services, and grant mortgage and housing-related consumer loans.
Enhancements for Residential Mortgages
To augment the services, mortgage banks can also finance residential necessities like furniture, home appliances, and generators. However, these enhancements are capped at a maximum of 10% of total loans.
Permissible Activities for Mortgage Banks
Subject to CBN approval, mortgage banks can finance rent-to-own properties, provide home improvement loans, and undertake incremental housing finance. Also, they can engage in other activities that may be approved by the CBN from time to time.
Non-Permissible Activities for Mortgage Banks
While they have broad powers, mortgage banks are explicitly prohibited from granting consumer or commercial loans (except for housing-related consumer loans). Moreover, they cannot provide foreign currency denominated mortgage loans or engage in leasing, estate agency or facilities/project management, and real estate development.
Categorization of Mortgage Banks
The CBN has conveniently categorized mortgage banks into State Primary Mortgage Banks (Regional PMBs) and National Primary Mortgage Banks (National PMBs). Regional PMBs operate within a single state or the Federal Capital Territory (FCT), while National PMBs can operate in more than one state, including the FCT.
List of CBN-Approved Mortgaged Banks
Here is the comprehensive list of CBN-approved mortgaged banks that have earned the NDIC’s seal of safety:
- Abbey Mortgage Bank Plc
- Platinum Mortgage Bank
- Mayfresh Mortgage Bank
- Jubilee-Life Mortgage Bank
- Aso Savings & Loans Plc
- Trust Bond Mortgage Bank
- SunTrust Mortgage Bank
- Infinity Trust Mortgage Bank Plc
- Haggai Mortgage Bank
- Imperial Mortgage Bank
- Nigeria Police Mortgage Bank
- FOKAS Savings & Loans
- Centage Savings & Loans
- Resort Savings & Loans
- Skyfield Savings and Loans
- FHA Homes Limited
- FBN Mortgages Ltd
- STB Building Society
- Omoluabi (Living Spring) Savings & Loans
- First Generation Homes
- Global Trust
Savings & Loans
- AG Homes Savings & Loans
- Kebbi State Homes S & L
- Mutual Alliance Savings & Loans
- Lagos Building and Invest. Co.
- Refuge Home S & L
- Safe Trust Savings & Loans
- Delta Mortgage Finance
- New Prudential Building Society
- Home-Base Mortgage
- Accord Savings & Loans
- Adamawa Savings & Loans
- Trans-Atlantic Mortgages Limited
- Akwa Savings & Loans
- Gateway Savings & Loans
- United/Spring Mortgage
- Kogi State Savings & Loans
- Jigawa Savings & Loans
- City-Code Savings & Loans
- Taraba State Savings & Loans
- MGSL Mortgage Bank
- AHCOL Savings & Loans
- Coop Savings and Loans
The release of the list of 43 approved mortgage banks by the CBN marks a landmark moment for Nigerians aspiring to become landlords. The move is a crucial step towards promoting homeownership and fostering economic growth.
1. What is the purpose of the approved mortgage banks?
The approved mortgage banks are designed to facilitate the acquisition, renovation, and construction of residential and commercial properties across Nigeria.
2. What are the main functions of mortgage banks?
Mortgage banks primarily provide loans to customers for acquiring, renovating, or building real estate properties. They can also engage in a variety of activities related to mortgage finance.
3. Are there limitations to the operations of mortgage banks?
Yes, mortgage banks cannot grant consumer or commercial loans (except for housing-related consumer loans), provide foreign currency denominated mortgage loans, or engage in leasing and estate agency.
4. How are mortgage banks categorized?
Mortgage banks are categorized into State Primary Mortgage Banks (Regional PMBs) and National Primary Mortgage Banks (National PMBs) based on their operational territories.
5. Are the deposits in these mortgage banks safe?
Yes, the Nigerian Deposit Insurance Corporation (NDIC) ensures the safety of customers’ deposits in these banks.
