MREIF Frequently Asked Questions

General Information What is MREIF Home Loan?

• The MREIF Home Loan powered by Stanbic IBTC Bank is a partnership with the Ministry of Finance Incorporated (MOFI), the investment arm of the Federal Government of Nigeria to offer Nigerians the opportunity to acquire residential property with an existing registered title.

• It comes at a single digit interest rate of 9.75%p.a. The mortgage offering is targeted at intended home buyers who are Nigerians all over the world for a mortgage repayment period up to 20 years. Equity contribution is as low as 10% and maximum loan amount of N100Mn.

• MREIF is designed to tackle challenges in the housing sector by addressing both supply and demand constraints bridging Nigeria’s home ownership

What are the acceptable title documents?

• Certificate of Occupancy

• Deed of Assignment

• Deed of Sublease

• Deed of Transfer

• Deed of Consent

• Deed of Conveyance

• Deed of Assent

• Any other registered property title with governor’s consent I need financing to purchase an off-plan residential unit. Is this covered under the MREIF Home Loan powered by Stanbic IBTC Bank?

Off-plan mortgage financing will be considered for properties developed and marketed by pre-approved construction companies, subject to approval as a standalone separate product but a shell unit which has completed its construction phases at most, is eligible.

What is the minimum amount I can access on the MREIF Home Loan?

• N10 million (Ten Million Naira Only or its equivalent for Diasporans).

What is the maximum loan amount?

• N100 million (One Hundred Million Naira only) however applicants who require more than this will be priced separately for the excess and subject to acceptable Installment to Income (ITI) and Debt Service Ratio (DSR) limits for salaried individuals. Repayment capacity will be based on the customer’s cash flow for non-salaried applicants.

What collateral must be provided for the MREIF Home Loan?

• A legal mortgage on the property to be financed for the customer will serve as collateral for the mortgage loan.

What are the repayment options on the MREIF Home Loan?

Repayments can be made Monthly. Where a customer earns guaranteed allowances quarterly/biannually/annually, repayment will be structured to accommodate these allowances, with a portion of the principal / interest amount repaid monthly.

Eligibility and Requirements Who is eligible for the Home Loan Solution powered by Stanbic IBTC Bank?

• Salaried individuals and business owners. Salaried individuals will be required to domicile their salary with Stanbic IBTC Bank and must have received their last salary into this transaction account. Business owners must provide verifiable cash flow.

What are the age limits?

• Applying customers must be at least 21 years old but not older than age 60 or applicant’s official retirement age from employer at the expiration of the facility.

What is the minimum length of employment required?

Customers must have a minimum of 6 months of employment with the current employer and confirmed permanent staff.

What is ITI and DSR?

• ITI (Installment-to-Income) evaluates the customer’s ability to repay the loan relative to the net monthly income earned. The limit is 35%.

• DSR (Debt Service Ratio) analyzes the ability to repay all total monthly repayments, including the home loan you are applying for. The limit is 50%.

What is the Home Loan repayment tenor like?

• A maximum of 20 years (subject to active service years to retirement age or 60 years at maturity of the facility).

What documents do I need to submit to unlock the MREIF Home Loan?

• Completed Home Loan application form.

• Offer letter for sale from Vendor.

• Copy of company (work) ID card and work permit (Diaspora).

• Copy of valid photo identification (Int’l passport/driver’s license).

• Letter of introduction from Employer (stating salary and confirmation status).

• Recommendation letter from professional body, institution, or company, United Nations and its agencies (Diaspora). • Curriculum vitae (Diaspora).

• Credit scores from approved agencies; Equifax, Experian, Fico, etc. (Diaspora).

• Copy of the registered title and survey documents to the property.

• Satisfactory search report.

• Recent 3 month pay slips and 6month bank statement with evidence of salary

What is the cost of perfection on the Home Loan?

• The cost of perfection is dependent on the state where the valuation of the property was done, the size of the property, location, and property price. This cost is payable to the government lands registry to process registration of deed in customer’s favour at a cost.

Can I pay down before the expiration of the facility?

• Yes, customers can prepay or part-liquidate the facility at no penalty.

Can I access the MREIF home loan to purchase land only?

• You can access our personal loan variants to purchase land.

Are joint applications allowed?

• Yes, joint applications are allowed with a spouse only. Primary applicant will be required to domicile salaries with Stanbic IBTC Bank and both party to fulfill all conditions to access the joint home loan

What are the approved locations for the MREIF Home Loan?

• All 36 states of the Federation including Federal Capital Territory (FCT).

Can I get more money after a period of repayment?

• Yes, customers can top up their loans subject to a 10% principal pay-down for basic home loans with Stanbic IBTC Bank and not yet applicable for MREIF Home loan.

Is there an insurance cover on the property?

• Yes, there is mandatory insurance cover on the property as well as mortgage life insurance on the applicant. The rates for the Fire and Special Perils are negotiable based on the replacement value of the building.

MREIF Diaspora Mortgage

What is the MREIF Diaspora mortgage about?

Stanbic IBTC Bank has set up a dedicated desk for Nigerians in diaspora. Diaspora Home Loan is one of the products available. It allows Nigerian professionals living in the USA, UK, Canada, and Saudi Arabia and other countries to purchase residential properties in Nigeria, with flexible repayment options and terms such as the MREIF criteria and benefits.

Do I have to make a deposit to access the diaspora mortgage?

Yes, this deposit is also known as “Equity contribution” and a minimum of 10% if accessing the MREIF solution or as high as 25% of the property value is other variants is required.

Who is eligible for the Diaspora mortgage?

Nigerians’ resident in the following professions: Medical, Engineering, Attorneys, IT Consulting, Financial Planning, Travels and Tours, Finance, Agriculture, Education, Oil & Gas, Media, Consulting, Leasing, Hospitality, Investment Banking, Accountancy, NFL, Architecture and others.

What is the minimum salary required to key into the Diaspora mortgage?

Creditworthy individuals who are employed and earn a minimum net monthly income equivalent to ₦500,000.

MREIF Specialized Mortgage.

What is Pension Backed Specialized Mortgage?

This is the outright purchase of turnkey properties using up to 25% of the Retirement Savings Account (RSA) balance to meet equity contribution requirements. (Retirement Savings Account can be with any accredited Pension Fund Administrator).

Who is eligible for the Specialized Mortgage Solution?

Employed Nigerians with an active Retirement Savings Account (RSA), must have pension contributions for at least 60 months and must be below three years to official retirement age.

Do I have to make a deposit to access the specialized mortgage?

Yes, this deposit is also known as “Equity contribution” and is only applicable to Property Purchase. A minimum deposit of 10% of the property value is required for the mortgage and this can be gotten through the 25% RSA balance or a combination of cash and 25% RSA balance where applicable.

Do I need to have my pension account with Stanbic IBTC to qualify for a specialised mortgage?

No, the specialised mortgage can be accessed by qualified applicants with a Retirement Savings Account managed by any Pension Fund Administrator.

What is the minimum monthly salary allowed to key into the specialised mortgage?

₦500,000 (Five Hundred Thousand Naira Only).

Must I purchase a home to access 25% from my Pension Account?

Yes, the guidelines issued by the National Pension Commission (PenCom) state that RSA holders can access up to 25% of their retirement savings account balance to facilitate equity contributions for residential mortgage.

Can joint applicants access specialized mortgages where both parties have different Pension Fund Administrators?

Yes, joint applications with a spouse are acceptable even where applicants have RSAs managed by different Pension Fund Administrators.

Off-plan Mortgage Solution.

What is the Off-plan Mortgage Solution?

This is the purchase of semi-completed units or homes under construction from bank-approved developers.

How can I access the Off-plan mortgage?

Once a property is listed by a reliable and accredited developer who can be vetted and onboarded, or any of our reputable onboard developers, and the required documents are submitted, the process begins.

Do I have to make a deposit to access the off-plan mortgage loan?

Yes, this deposit is also known as “Equity contribution”. A minimum deposit of 30% of the property value is required for this variant.

Help-To-Own Home Loan What is the Help-To-Own Home Loan?

This variant aims to provide creditworthy Nigerians who are first-time homeowners and are employed in Nigeria and the Diaspora the opportunity to access affordable rates for an outright purchase.

What is the maximum property price allowed for the Help-to-Own Home Loan?

This initiative is to empower Nigerians home and abroad to become homeowners. The property value is capped at ₦70,000,000 (Seventy Million Naira) and 40% of the loan amount is priced at 7% per annum fixed interest rate for the life of the facility.

How much deposit is required for this Help-to-Own Home Loan?

The equity contribution for this home loan is a minimum 10% Equity Contribution (by cash or by 25% RSA for eligible applications). Customers can choose to do more than this where desired.

What are the interest rates for the Help-to-Own Home Loan?

The interest rates for this initiative is affordable and is charged at 7% per annum on 40% of the loan while the prevailing commercial rate is charged on 50% of the loan amount and customer provides 10% as equity contribution.

What is the equity release product about?

The product allows existing homeowners with titles already registered in their name to draw up to 85% as cash of the market value of the home and use this to purchase another property anywhere in the world. That way you use one home with registered title to get two or multiple other properties. Up to 50% cash available under this option for other personal purposes.

Where can we view available properties?

The preference is for you to find your choice directly. We can provide supply support from collections that will be subjected to due diligence once ready to commence. Properties are currently hoisted via our digital marketplace on https://homeloans.stanbicibtc.com or find more listings via www.buyletlive.com

Where do we send inquiries to?

For further information or inquiries, kindly send an email to [email protected]  

Telephone: 07080659000, 02014227239