Worried over the lingering housing deficit, a Property Consultant, Mr Adeolu Ogunbanjo, has advised commercial banks to be more active in the housing sector and address challenges in the sector.
Ogunbanjo, the Chairman of the Association of Estate Agents of Nigeria (AEAN), gave the advice in an interview with the News Agency of Nigeria (NAN) in Lagos on Wednesday.
He said that banks had the potential to financially assist in the nation’s housing development to save the building construction industry from collapse.
According to him, in most cases, commercial banks hold more assets than other financial institutions.
He said that many banks gave mortgage loans to those operating in the bank, saying that the banks should also make the offer open by sensitising the public to apply for loan.
“Commercial banks need to play more active roles in the mortgage system because they are strategically positioned to revamp the mortgage market.
“Commercial banks need to start offering mortgage services and products instead of offering other loans being disguised as mortgage,’’ he said.
Ogunbanjo said that commercial banks should not hide under specialisation as an excuse to run away from their duties.
He added that commercial banks should be more proactive in discovering and rendering services that would boost the mortgage system.
“Commercial banks can provide full mortgage services to the public and equally extend their lending tenure to 30 or 35 years if they determine to do so.
“Let all banks start to build and sell houses if they cannot give outright mortgage loans.
“If more people can afford homes through services of the banks, it will improve the Gross Domestic Product and have positive effects on the economy, ‘’ Ogunbanjo said.
He suggested that the Federal Government should direct banks to create more consumer-friendly mortgage products to jump start home financing, mortgage system and housing development in the country.
