The Lagos State Mortgage Board on Friday said that the allocation of decent and affordable mortgage houses for residents across the state was still on, through the new Rent-To-Own Scheme.
Mr Bayowa Foresythe, acting General Manager of the Board, in an interview with the News Agency of Nigeria (NAN) in Lagos, dismissed the allegation that the board was no longer allocating houses.
Foresythe said that the Rent -To-Own scheme was introduced to replace and modify the initial Home Ownership Mortgage Scheme (H.O.M.S) in which the lottery or ballot system was used for the allocation.
He said that the Rent-To-Own Scheme was introduced to improve on the initial scheme for residents to benefit on a first come, first served application submission basis.
“So, it is basically on how early you submit your form and how quick you can do all the due diligence in terms of paying your processing fee, ” he said.
Foresythe said that another fundamental factor the board considers in the appraisal of the applicants is the Debt To Income (DTI) ratio.
He said: “Considering the DTI ratio, a beneficiary cannot use more than one third of his or her salary for the repayment of the mortgage.
“If, for example, we appraise and see somebody on 15 per cent and another on 28 per cent, though the 28 per cent will qualify as well because the law says beneficiaries must not exceed 33 per cent on their DTI, 15 per cent is better .
” This is because he or she will still have more money left from the salary after the loan deduction has been made and will not be a potential defaulter.“So, those are part of the criteria of the new scheme, but so far , even with the lottery and the new scheme, it is a win-win situation.”
According to him, the new scheme has helped the board a lot because the rate of defaulters has been minimal.
He noted that generally, the number of defaulters recorded since the beginning of the schemes had been relatively low due to the criteria put in place and the counsel given to beneficiaries on the implication of defaulting.
The acting GM said that the Gov. Babajide Sanwo-Olu-led administration had recently completed and commissioned the Igando Gardens Scheme that subscribers had waited for so long to have.\Foresythe said Gov. Sanwo -Olu, on assumption of duty, had directed that all uncompleted housing projects should be completed and delivered.
“The Igando housing of about 492 units has been fully allocated and we are now moving to Igbogbo, and that will be commissioned before the governor’ s first year anniversary on May 29.
“It will be ready for allocation to all out prospective allotees because all the offer takers are waiting to take the offers,” he said.
Foresythe disclosed that the board had created homes for over 20,480 people since its inception, had 4,096 housing units spread across all the divisions of the state, and was still doing more.
He said the Lagos State Mortgage Board was created to reduce the housing deficit in the state and was delivering on the mandate.
According to him, upon establishment of the board in 2014, data indicated that the state had 4 million deficit and a minimum of 100,000 houses was to be built in a year.
“The issue of housing in Lagos as a cosmopolitan city is very germane, as shelter is key to human existence .
“The aim of the state government was to provide social housing in some particular areas at an affordable rate that enables beneficiaries to pay through mortgage over a period of time .
“Government has built houses in the five divisions of Lagos called IBILE , which is Ikeja, Badagry, Ikorodu, Lagos Island and Epe, ” he said.
According to him, residents of Lagos State have continued to benefit largely from the initiative of the government since inception of the various schemes.
Foresythe said the government was also magnanimous to give out the houses at subsidised rate for the various schemes.
“We have schemes in Ilupeju , Ogba, Mushin, Ikorodu , Badagry and Epe, Igbogbo, Ojokoro, Igando, Agbowa, Abijo, Surulere, Amuwo as little as N1.5 million where beneficiaries pay only N15,000 monthly and the equity is about N 75,000 to a maximum of N20 million, depending on the location, and repayment is calculated depending on earnings.
He assured that the board would, in line with the vision of the current administration, continue to put smiles on the faces of Lagos residents .
Foresythe said that the board would ensure allocation of houses was done transparently, fairly and equitably.
(NAN)