…targets homeownership for 1.5m Nigerians
High interest rates and limited access to affordable mortgages are seen as making homeownership increasingly difficult for many Nigerians.
According to the Central Bank of Nigeria (CBN), the country faces a severe housing deficit of 28 million units. This shortage, compounded by stringent regulations and bureaucratic obstacles, leaves only 10 percent of potential homeowners able to afford property.
In response to this crisis, Growth and Development Limited (GDL), a financial services group, has unveiled HouseMoni, a pioneering rent-to-own scheme – aimed at making homeownership more attainable for Nigerians.
“GDL’s HouseMoni is designed to offer a financially sustainable path to owning a home, addressing the near-total lack of appropriate financing options currently available in the country,” Kola Ayeye, executive vice chairman of GDL said at the launch.
HouseMoni features a fixed interest rate of 9.9 percent over a 15-year term, providing financial stability and predictability for subscribers.
The scheme allows participants to receive up to three times the amount they contribute in home financing.
“This setup facilitates the transition from renting to owning a home,” Ayeye said. “Our goal with HouseMoni is to help 1.5 million people become homeowners within the next decade.”
“By empowering individuals and families to achieve homeownership, we are not just building houses; we are fostering stronger communities and a more vibrant economy.”
Also speaking at the event, Oluyemi Adekoya, a director at GDL said “The scheme operates with a payment plan that includes a 3.5-year savings period followed by up to 11.5 years of financing, summing up to a 15-year total repayment period.”
HouseMoni offers two options: HouseMoni Classic for individuals seeking to purchase their homes, and HouseMoni Community for groups looking to develop estates together.”
HouseMoni represents GDL’s commitment to evolving financial products that strengthen and expand Nigeria’s middle class.
By providing a viable homeownership financing solution, GDL aims to alleviate the housing crisis, enhance economic development, and promote shared prosperity across the country.
