The Muslim Lawyers Association of Nigeria (MULAN) has commended the Federal Mortgage Bank of Nigeria (FMBN) for introducing the Non-Interest Rent to Own Housing Product to enable a broader spectrum of Nigerians to own their homes.
The association, led by its national president, Professor Abdul Qadir Ibrahim Ibikan, made the commendation during a recent courtesy visit to the FMBN Management Team at the Bank’s Head office in Abuja.
“We received the news of FMBN’s approval of the non-interest rent-to-own product with extreme excitement. This is because it provides an alternative mortgage scheme for many Nigerians whose religious beliefs do not allow them to benefit from the Bank’s housing products because of their interest-based nature. We believe the decision will engender a more inclusive mortgage system for a broader spectrum of Nigerians,” Prof. Ibikan said.
He added that MULAN is ready and willing to partner with the FMBN towards ensuring a smooth implementation of the non-interest housing products through the provision of relevant advisory services by its members.
FMBN developed the product to eliminate the challenges that eligible Nigerians who want to own their homes through the National Housing Fund (NHF) Scheme face because of the interest-based nature of the Bank’s existing housing products.
The product uses a rent-to-own model that allows beneficiaries to move into FMBN and non-FMBN-funded homes and conveniently pay towards full ownership using monthly/quarterly or annual rentals.
The product’s financing structure is based on the non-interest financing contract of Ijarah Muntahia Bitamleek (Lease to Own). Under this arrangement, FMBN retains ownership of the property until the financing term ends or at any time during the lease period that the beneficiary wishes to purchase the property.
The FMBN non-interest rent-to-own product is available to Nigerians who must be contributors to the National Housing Fund (NHF) Scheme. It covers both FMBN and non-FMBN-funded properties with a maximum price of N15million. Beneficiaries have the options to pay to own the property in monthly/quarterly or annual rental installments over thirty (30) years depending on their age and years in service.
In his remarks, the Managing Director/Chief Executive, FMBN, Mr. Madu Hamman, represented by the Executive Director, Loans and Mortgage Services, Lukman Mustapha, thanked the team for the visit while assuring them of the Bank’s readiness to collaborate with the association towards ensuring a hitch-free provision of the non-interest housing product.
He encouraged members of MULAN to become ambassadors of the non-interest rent-to-own product by taking the news outside of the association to other prospective homeowners within their respective areas of influence and network.