Lagos – Mr Chudi Ubosi, the African President, International Real Estate Federation (FIABCI) on Tuesday canvassed the need for the commercial banks to introduce friendly mortgage products that would bridge the increasing national housing demand.
Ubosi a real estate consultant, said in an interview with the News Agency of Nigeria (NAN) in Lagos that the Federal Government needs to also partner with the commercial banks in the promulgation of universal banking laws to save the Nigerian real estate industry from collapse.
He said the suggestion for banks to intervene in the sector stemmed from the financial capacity of the commercial banks and their potential toward the revamping of the nation’s mortgage market.
Ubosi identified lack of fund as a major challenge facing the domestic real estate industry.
According to him, commercial banks should expand their frontiers by intervening in the value added housing industry.
He said that housing projects were long-term investments and needed to be financed with long-term loans, rather than the short-term loans which the commercial banks are currently offering.
Ubosi said that the commercial banks should be more proactive in discovering and rendering services that would boost the economy and the mortgage system.
“A bank, claiming to be a commercial bank and not a mortgage bank, is only giving an excuse because in the UK, commercial banks like Barclays offer full mortgage services.
“Commercial banks need to start offering full mortgage services and products instead of other loans disguised as mortgages.
“If more people can afford homes through mortgage services, it will improve the gross domestic product which would have a positive impact on the economy,” he said.
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Ubosi said that commercial banks should serve as a one-stop shop for all financial activities due to its proximity.
“You cannot expect a person living in Ijebu-Ode or Ibadan to move as far as to Lagos, looking for a mortgage-based bank, when a commercial bank is next door to him.
“Due to the branch network of the commercial banks, they are better equipped to provide mortgage services, irrespective of where one lives,” he said.
Ubosi urged the commercial banks to play more active roles in the mortgage market. (NAN)