The Federal Mortgage Bank of Nigeria (FMBN) has been praised by the Muslim Lawyers Association of Nigeria (MULAN) for launching the Non-Interest Rent to Own Housing Product to enable a wider range of Nigerians to own their homes.

Professor Abdul Qadir Ibrahim Ibikan, the association’s national president, delivered the compliment during a recent courtesy visit to the FMBN Management Team at the Bank’s Abuja headquarters.

He said, “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 noted 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.

The Executive Director of Loans and Mortgage Services, Lukman Mustapha, spoke on behalf of the Managing Director/Chief Executive of FMBN, Mr. Madu Hamman, who thanked the team for their visit and assured them that the Bank was ready to work with the association to ensure the smooth delivery of the non-interest housing product.

He urged MULAN members 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.

FMBN & Non-FMBN-funded homes

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.

In addition, 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.

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