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Find out more as FG announces new scheme to buy as house as N500k salary is no longer enough
['Dave Ibemere']
Legit.ng
Nigerians earning below N500,000 ($333) a month are effectively locked out of the mortgage market due to high interest rates and affordability constraints, a top industry expert has said.
BusinessDay report that he noted that mortgage repayments on even modest homes exceed 40% of monthly income well above global affordability benchmarks.
He added:“Affordability is a major constraint; high interest rates and short tenures make mortgages unaffordable for the average Nigerian."
Interest rates currently range between 18% and 27% despite a recent cut by the Monetary Policy Committee (MPC).
To boost affordability, Ajadi urged innovative interventions such as subsidised interest rates, credit guarantees, rent-to-own schemes, and shared equity models.