The Kaduna State Government and Sterling Bank have agreed to jointly fund a N5bn mortgage scheme to facilitate home ownership in the state.
The fund will provide mortgages at single-digit interest rate.
Umma Aboki, Special Adviser on Economic Matters to governor Nasiru El-Rufai said at a press conference on Wednesday in Kaduna that the partnership was to facilitate mass housing in the state.
“To encourage more people to own homes, we also have to support the demand side through mortgage financing.
“I am happy to announce that Kaduna State is partnering with Sterling Bank to deliver an affordable, single-digit interest mortgage facility.”
Aboki said that the facility was opened to all people in the state including those that successfully bid for government houses recently.
Garba Mohammed, Group Head, Non-Interest Banking of Sterling Bank, said they have signed a Memorandum of Understanding with the state government to provide the mortgages at 9.5% interest per annum.
He explained that the two parties will each contribute 50 per cent of the mortgage fund for onward lending to aspiring homeowners.
According to him, 50 percent of the funds have been earmarked for those wishing to purchase houses below N20 million value, 30% for houses valued up to N30 million and 20% to support home purchases of between N30 and N60 million.
Mohammed said beneficiaries would make security deposits of between 15 to 30% of the value of the houses they intend to purchase and would be expected to liquidate the loan within 10 years.