First set of beneficiaries of Lagos Home Ownership Mortgage Scheme (LagosHOMS) have fulfilled their 10-year payment obligations to fully own the properties allotted to them by Lagos State Mortgage Board in 2014.
Governor Babajide Sanwo-Olu presented Exit Certificates to the allottees at a ceremony held in NECA House, Ikeja, on Thursday, 29 August, 2024. The instruments now fully conferred the ownership rights of the properties on the beneficiaries, following the completion of their mortgages.
The properties, which were built by the State Government, were purchased and allotted through a rent-to-own scheme managed by the Board. Since inception of the mortgage scheme in 2014, no fewer than 20,000 Lagosians have subscribed to the scheme, which has made it easier for people with limited capital to buy and own decent homes.
LagosHOMS is a welfarist initiative designed by the Lagos State Government to bring succour to low- and middle-income families and assist them in achieving their dreams of becoming property owners.
Sanwo-Olu said the fulfillment of the mortgage obligations by the allottees was a proof of acceptability of the scheme among State’s residents. He said the State Government had made significant strides in the provision of affordable housing, with renewed efforts to address the housing deficit through a number of simple interest schemes designed for average families.
The Governor reiterated that his administration remained steadfast and committed to reducing the deficit in the State’s housing market, while making affordable homeownership options available for the State’s growing population.
He said: “Today, we celebrate a decade of social housing delivery through LagosHOMS, which reflects the progress we have made in our journey towards providing affordable housing for the people of Lagos. We are marking the successful ownership of homes by Lagosians who have fulfilled their mortgage obligations. This is proof of our administration’s commitment to making homeownership a reality for our citizens.
“We remain steadfast in our efforts to reducing the housing deficit in Lagos and providing more affordable options for our growing population. Our focus will continue to be on increasing access, while improving the quality of our housing units, expanding mortgage financing options, and collaborating with stakeholders to drive further housing development and enhance the lives of our citizens.”
Sanwo-Olu, at the event, approved a new LagosHOMS redemption policy, which presents an opportunity for an early exit from the mortgage rent-to-own contract.
According to the new policy, allottees that have spent a minimum of six years on the rent-to-own scheme and can afford to pay off their balance ahead of time can now exit without having to wait until the 10th year originally agreed in their allocation documents.
The Governor said his administration introduced and supported legislative reforms aimed at streamlining housing delivery processes, reducing bottlenecks in land acquisition, and ensuring transparency in housing allocation.
The Deputy Governor, Dr. Obafemi Hamzat, said the mortgage financing model was key to addressing housing demand and enhancing development in the States.
He said: “All over the world, housing demands have been adequately managed through the mortgage system. The scheme makes it easy for an average income earner to own a home without having his life disrupted. It reduces the stress of having to build bit by bit.”
The state Commissioner for Housing, Hon. Maruf Akinderu-Fatai, said the completion of the mortgage obligations by the allottees made the State Government to be proud of the initiative, stressing that the scheme was a testimony to sustainability of governance in Lagos.
The Commissioner said 75 per cent of housing stocks built by the Ministry of Housing was allocated for LagosHOMS, with 6 per cent simple interest rate.
Akinderu-Fatai urged beneficiaries to maintain the aesthetics and structural standard of the properties bequeathed to them.
General Manager of Lagos State Mortgage Board, Mr. Bayowa Foresythe, explained that the allottees went through the pre-qualification process, which assessed their Debt-to-Income (DTI) ratio before finally being issued allocation documents and keys.
He said the monthly payments by the mortgagors were re-invested into provision of more affordable housing units across the State.
“We use this opportunity to encourage other beneficiaries of our mortgage and rent-to-own schemes, who are yet to complete their obligations to continue making their repayments, insurance and facility management fees as at when due. This will help in maintaining the schemes for sustainability,” Foresythe said.
Sanwo-Olu named the Ilupeju LagosHOMS Housing project after the late Oba Mufutau Olatunji Hamzat, an elder statesman, political leader in Mushin and father of the Deputy Governor.
