Applicants for mortgage loans will now be required to get insurance

The mortgage refinancing scheme, an initiative of the Nigerian mortgage refinancing company is set to sensitise real estate investors on the new requirement for mortgage loans.

According to Sunday Thomas, the Director-General of Nigerian Insurers Association “We had a meeting with the management of the Mortgage Refinancing Company recently and we tried to draft an arrangement that would work because they were integrating insurance into the mortgage refinancing initiative. If they are financing any mortgage initiative, insurance will be part of the requirements.”

Adding that the insurance package will protect borrowers who lose their jobs and are unable to pay back the loans. He also said that the property will be insured against natural and unforeseen hazards.

The Nigerian Mortgage Refinancing Company, says it will create an enabling environment for financial institutions to give out loans to Nigerians, at an affordable interest rate, over a long tenure.

This construction of new housing units will also create jobs and provide income for low income households.