ABUJA – The Chief Executive Officer, Nigeria Mortgage Refinance Company, Mr Sonnie Ayere, has said that the organisation would introduce counseling services for the public on how to negotiate mortgages.
Ayere stated this in Abuja on Sunday in an interview with the News Agency of Nigeria (NAN).
He said that enlightenment was an essential component in mortgage refinancing but regretted that it was considered in the new Federal Government’s mortgage refinancing scheme launched on Thursday.
The scheme, in its phase, according to the government, would provide 10,000 affordable homes for Nigerians,
“One of the things we have not added in this programme, which we will be adding to the programme, is actually Mortgage counseling.
‘’This means teaching people what they should ask for under their mortgages,’’ he said.
According to Ayere, people should know the relevant questions to ask before signing into mortgages.
Commenting on penalty in pre-paying mortgage, he said that it would depend on individual agreements with primary mortgage institutions.
He explained that pre-payment of mortgage was ability of one to pay off the mortgage before the negotiated period of payment [eap_ad_1] “This will depend on banks; some banks will surcharge you; some will not charge, but if you take it from a logical stand point, when a bank gives a loan, its profit on the loan is the interest.
“So, when you now come in and pay the loan, you have stopped the bank from getting the interest.
“Logically, the banks will say, since you are stopping them from earning the prolonged profit, we are going to charge penalty,’’ he said.
Ayere, however, said that the amount to be charged would vary from one institution to another, adding that there might be institutions which may not charge for that.
He said that pre-payment of mortgages should be top in most questions people should ask while negotiating for mortgage. (NAN)