Information Sheet

  • WHAT IS LAGOS HOMS?

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    In line with its promise to stimulate investment in home ownership by increased access to affordable mortgage finance, the Lagos State Government is pleased to introduce the Lagos Home Ownership Mortgage Scheme (Lagos HOMS) - a stimulus package for equity-supported access to home ownership that will provide the framework for a sustainable mortgage scheme in Lagos State.

  • HOW WILL IT WORK?

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    The Lagos State Government will continue to provide decent and affordable housing units of various types and sizes for purchase by residents of Lagos State. Upon completion, these houses will be handed over to the Lagos State Mortgage Board (“the LMB”) to administer under the Scheme.

    The LMB has the power to issue and execute policies and regulations for the effective implementation of Lagos HOMS. LMB will pre-qualify applicants for the Draws while the LBIC will administer the completion of the mortgage process.

  • FIRST-TIME BUYERS (FTBs)

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    Lagos HOMS will focus on residents entering into the property market for the first time. The Scheme provides access to mortgage finance for first-time buyers (FTBs). Outright purchase will not be permitted. This is to enable a larger number of residents own their own homes over time and to avoid purchase by multiple property owners who may distort the intention to meet the large-scale demand for affordable housing.

    Prospective applicants will be required to depose to an affidavit attesting that they are first time buyers. Applicants will also undertake in their mortgage deeds, not to abuse this understanding. A breach of this provision will make the homes liable to re-possession and the applicant criminally liable to be prosecuted for making a false deposition.

  • 30 â 30 EQUITY CONTRIBUTION

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    Lagos HOMS is all about making affordable housing more accessible Lagos State residents. Under the Scheme, an applicant will become an owner/occupier with a minimum contribution of not more than 30% of the purchase price, plus any other prescribed fees.

    To make the mortgage financing effective, applicants will be actively encouraged not to exceed the minimum payment. Applicants will not be allowed to commit more than 30% of their monthly income to mortgage repayments.

  • RESTRICTIONS

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    To prevent property speculators from defeating the objectives of the Scheme, there shall be an enforceable “No buy-to-let” clause in the contract of sale. Homes will be delivered only on an owner-occupier basis.

  • MONTHLY MORTGAGE REPAYMENTS

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    Mortgage repayments have been designed to be spread over a minimum period of 10 years. Homes purchased under Lagos HOMS can and will be repossessed if applicants do not keep up with their monthly mortgage repayments.

    All the conditions for owning a home are clearly set out in the contract of sale and other documents attached to this Application Form.

  • DISPUTE RESOLUTION

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    Disputes are inevitable in human and commercial relationships. Lagos HOMS has a speedy and effective dispute resolution mechanism. This will take the form of arbitration by a single arbitrator appointed by the President of the Lagos Court of Arbitration.

    The arbitration will be conducted under the specially designed Lagos HOMS Housing Arbitration Rules to be administered by the Lagos Court of Arbitration.

    The cost of arbitration is nominal and has been pegged at 2% of the value of the purchase price, to be shared in equal part by the parties. The Housing Arbitration Rules are available for download on the Lagos HOMS website.

  • WHAT ELSE DO I NEED TO KNOW?

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    Applicants must be primarily resident in Lagos State and will be required to provide proof or submit a copy of their Lagos State Residents Registration Card where applicable.

    Document to be submitted with the application are listed on the Application Form.

    Duly completed Application Forms will be submitted online or in person to the LMB with the prescribed processing fee and copies of all required documents attached. Originals of documents must be brought along for sighting.

    Co-Applicants will be permitted but will have to take joint title. Both applicants must be first time buyers.

    Only tax compliant applicants will be eligible under the Lagos Home Ownership Mortgage Scheme and must provide proof of tax payment for the last 5 years.

    Once an application is submitted, it will go through a pre-qualification process at the LMB. If additional information is required, the LMB will contact the applicant through the contact details submitted. This process may take up to 30 days, after which Draw Reference Numbers will be issued in respect of approved applications. Applicants will be contacted with their Draw Reference Numbers and will be notified of the Draw date so they can attend if they wish. The Draws will be conducted in a fair and transparent manner.

    Successful draws will be published while unsuccessful applicants are at liberty to reapply.

    Applicants who have applied before will not be required to submit a fresh Application Form unless the information contained in the original form has changed.

    Applicants who are re-applying will depose to an affidavit declaring that the information in their form is still correct. Any false deposition will result in automatic disqualification.

    The processing fee is payable each time an applicant re-applies.

    Applicants who are successful at the Draw will be eligible for access to mortgage finance subject to post-draw processing administered by the LBIC. The post draw process involves (amongst others) a credit appraisal to assess the applicant’s ability to make the 30% down payment and meet the monthly repayments.

***APPLICANTS ARE STRONGLY ADVISED TO SEEK THE ADVICE OF A LAWYER TO ASSIST THEM THROUGH THE MORTGAGE APPLICATION PROCESS


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