Comparison of the modified framework with the real problems
| Revised framework | Real-issue situation |
|---|---|
| The Nigeria Mortgage Refinance Company should overhaul the mortgage market for efficiency and tailor it towards homeownership for the LInEs | Low-income earners experience a high default rate |
| Besides encouraging Rent-To-Own scheme, government should introduce subsidise to mitigate the pressure from loan repayment | Majority need help with loan repayment |
| LInEs are encouraged to be discipline regarding spending and recommended an upward income review to make LInEs creditworthy to access housing loans | Issues of creditworthiness are higher with LInEs |
| Savings in the Nigerian Pension Scheme could act as collateral | The absence of collateral is common with low-income earners |
| Government support could inform of a down payment and savings in the Nigerian Pension Scheme act as collateral | The inability to make a down payment is common among LIEs |
| The Nigeria Mortgage Refinance Company should overhaul the mortgage market for efficiency and tailor it towards homeownership for the LInEs | Mortgage banks are afraid because of the inability to recover housing loans and operating costs from the property auction |
| The apex bank should sanction erring mortgage banks as a deterrent | Many mortgages’ banks focus on the high-end market because of absence of LCH financing framework |
| LInEs are encouraged to be discipline regarding spending and recommended an upward income review to make LInEs creditworthy to access housing loans | Need more adequate savings to access housing finance loans |
| Revised framework | Real-issue situation |
|---|---|
| The Nigeria Mortgage Refinance Company should overhaul the mortgage market for efficiency and tailor it towards homeownership for the LInEs | Low-income earners experience a high default rate |
| Besides encouraging Rent-To-Own scheme, government should introduce subsidise to mitigate the pressure from loan repayment | Majority need help with loan repayment |
| LInEs are encouraged to be discipline regarding spending and recommended an upward income review to make LInEs creditworthy to access housing loans | Issues of creditworthiness are higher with LInEs |
| Savings in the Nigerian Pension Scheme could act as collateral | The absence of collateral is common with low-income earners |
| Government support could inform of a down payment and savings in the Nigerian Pension Scheme act as collateral | The inability to make a down payment is common among LIEs |
| The Nigeria Mortgage Refinance Company should overhaul the mortgage market for efficiency and tailor it towards homeownership for the LInEs | Mortgage banks are afraid because of the inability to recover housing loans and operating costs from the property auction |
| The apex bank should sanction erring mortgage banks as a deterrent | Many mortgages’ banks focus on the high-end market because of absence of LCH financing framework |
| LInEs are encouraged to be discipline regarding spending and recommended an upward income review to make LInEs creditworthy to access housing loans | Need more adequate savings to access housing finance loans |
Source(s): Authors’ work
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