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One of the brilliant ideas that real estate product suppliers always flaunt as bait to product buyers is the partnership that exists between them and mortgage lenders who, according to them, are there ready and able to give mortgage facility to the buyers.
Whenever there is a real estate event where these developers and lenders meet, a major sideline event is the signing of partnership agreements which leaves one wondering the purpose and the interest those agreements and partnerships are meant to serve, given experiences of mortgage subscribers.
Currently, a lot of things are changing in tune with unfolding realities and one only hopes that these new partnerships are coming to change what used to be the nature, character and intent of what was known of partnerships between estate developers and providers of housing finance.
Almost always, when experts, home seekers and sundry stakeholders gather to discuss the mortgage industry in Nigeria, the focus is generally on reasons for the slow growth of the industry and poor access to housing loans which they blame on high cost of funds, demand for high equity contribution by lenders, etc.
But there are more yet unknown. Oftentimes, little or no note is taken of other contributors to this slow growth among which is the huge stress which mortgage lenders pile on borrowers and the empty partnerships which some of the lenders deceive home seekers into believing that they have with estate developers, giving false hope that they are just a few steps away from home ownership.
Part of the statutory functions of primary mortgage banks (PMBs) and mortgage lenders generally is to provide housing finance to those who need same to build, buy or renovate existing houses. But, in more cases than one, those who apply for loans from … Read More...