Frequently Asked Questions

FAQ is available in English, Yoruba, Egun, Ibo and Hausa. Click the laguage button to select your choice.

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  WHAT IS LAGOS HOMS?

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  The Lagos Home Ownership Mortgage Scheme (Lagos HOMS) is a stimulus package for equity-supported access to home ownership that will provide the framework for a sustainable mortgage scheme in Lagos State. Under the Scheme the Lagos State Government will

  • Provide decent and affordable homes of various types and sizes for purchase by Lagos residents and
  • Access to mortgage finance for First-Time Buyers (FTBs) to purchase these homes.

  The objective of the Scheme 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.

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  HOW MUCH IS THE PROCESSING FEE AND IS IT REFUNDABLE IF I AM NOT SUCCESSFUL AT THE DRAW?

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  The processing fee is N10,000 (Ten Thousand) Naira Only. It is a nominal charge for processing your application paid when you submit your application and is non-refundable.

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  WHAT MUST BE INCLUDED WITH THE APPLICATION FORM?

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  All of the document to be submitted with your application can be found at the Link checklist of documents to be submitted with your application.

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  WHAT HAPPENS IF ANY ANSWER IN MY APPLICATION FORM IS FOUND TO BE FALSE?

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  You are required to depose to an affidavit which becomes part of your contract with Lagos State Mortgage Board (â??LMBâ??). Any false deposition disentitle an Applicant to benefit from the Scheme and should they have already benefitted, will entitle the LMB at any time to revoke the allocation to them and also impose any other applicable sanctions.

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  WHAT HAPPENS AFTER THE DRAW?

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  Once you are successful at the Draw, the LBIC will commence the processing of your mortgage . Upon receipt of an offer, you are expected to indicate acceptance and comply with the conditions set out, including the payment of a 30% initial deposit to LBIC within the period stipulated in the Letter of Allocation. The Contract of Sale and Deed of Mortgage are then executed (signed) and the keys to the property delivered to you.

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  WHAT HAPPENS IF I AM UNSUCCESSFUL AT THE DRAW?

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  You can re-apply and pay the processing fee again. You do not need to fill out a new form if you are applying within three (3) months and your information has not changed. However, you will be required to depose to an affidavit (available on the website) to that effect.

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  HOW DO I KNOW IF I QUALIFY FOR A MORTGAGE UNDER LAGOS HOMS?

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  Easy. Click on the Resources Tab on the Lagos HOMS website which will tell you all you need to know. You can also use the Mortgage Calculator to calculate how much you will be paying back each month.

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  WHAT IS THE INTEREST RATE PAYABLE ON A LAGOS HOMS MORTGAGE?

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  The highly subsidized interest rate is 9.5%.

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  WILL THE INTEREST RATE CHANGE?

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  The interest rate might be reviewed downwards based on Central Bank of Nigeria (CBN) Monetary policy.

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  WHAT IS MY MORTGAGE TERM?

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  The minimum mortgage term is 10 (Ten) years

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  HOW DO I KNOW HOW MUCH I WILL REPAY BACK ON MY MORTGAGE?

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  To calculate your total mortgage repayment, please click on the Mortgage Calculator. This lets you look at the overall picture and see how your mortgage really works. It shows you how much of your total monthly payment covers the interest you owe, and that which pays down your principal [actual amount that you borrowed].

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  WHAT WILL BE MY EQUITY CONTRIBUTION?

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  Successful applicants will make an initial payment (which is your equity contribution) of 30% of the value of the home.

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  DO I HAVE TO OPEN AN ACCOUNT WITH LBIC?

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  Yes, you have to open an account with LBIC for your monthly mortgage repayments. Your account must be funded each month for mortgage payment due.

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  CAN I ISSUE POST DATED CHEQUES FOR MY MORTGAGE PAYMENTS?

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  Yes, you can issue post-dated cheques to fund your account in LBIC which will be used to offset your monthly payments.

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  CAN I HAVE MY MORTGAGE PAYMENTS DEDUCTED FROM MY CURRENT ACCOUNT IN ANOTHER BANK?

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  No but you can set up a standing order or direct debit from your bank to your account in LBIC.

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  HOW DO I CHECK MY MORTGAGE BALANCE?

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  You can check your mortgage balance by contacting LBIC.

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  CAN I PAY MORE THAN 30% EQUITY CONTRIBUTION IF I CAN AFFORD TO?

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  No. You can only pay 30% equity contribution and your monthly repayments must not exceed 30% of your total monthly income.

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  HOW LONG WILL IT TAKE TO PROCESS MY MORTGAGE APPLICATION?

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  After you submit your application and you are successful at the Draw, it is expected that processing will take not more than 30 days.

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  CAN I CHECK THE STATUS OF MY MORTGAGE APPLICATION?

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  Yes you can! Click on the Track my Application Link on the website.

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  CAN I PAY OFF MY MORTGAGE EARLIER THAN THE 10 YEAR TERM?

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  No. The tenure is for a minimum of 10 (Ten) years.

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  CAN I INCREASE MY MONTHLY PAYMENTS?

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  Yes, as long as the minimum tenure of the mortgage loan does not fall below 10 years.

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  WHAT HAPPENS IF I MISS A PAYMENT OR MY PAYMENT IS LATE?

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  If you miss 3 (three) consecutive payments your home will be liable to foreclosure. Late payments will attract a charge equal to 20% of the late payment. You are advised to contact the LBIC immediately, if you are experiencing any financial difficulty.

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  DO I NEED INSURANCE?

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  Yes, you need to take out a compulsory Property Insurance to protect your home against fire and special perils. Another type of insurance - Mortgage Protection Insurance is not compulsory but is strongly advised as it protects against the effects of death or permanent disability. A Home Insurance (Content) is also advised to protect your contents and personal possessions.

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  CAN I RENT OUT MY HOME?

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  No. The Lagos HOMS Scheme only allows You must live in the home you purchase. There will be periodic checks to make sure home owners comply.

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  I HAVE NOT FINISHED PAYING OFF MY MORTGAGE BUT I WANT TO SELL MY HOME. WHAT DO I DO?

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  To sell your home when you have not finished paying off my mortgage means you want to redeem your mortgage and this can only be done through LBIC. To start off the process of redeeming your mortgage, contact the LMB which will lead you through the process.

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  DO I NEED A LAWYER?

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  Yes. It is strongly recommended that you seek the advice of a lawyer for guidance on the legal documentation.

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  WHO WILL BE RESPONSIBLE FOR THE MAINTENANCE OF MY HOME AFTER PURCHASE?

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  The home owner shall be expected to maintain the interior of the property. However, there shall be a Facility Management company appointed by LMB whose responsibility shall include the proper management and maintenance of the exterior of the property and provide facility management services.

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  I AM AN ESTATE AGENT AND I HAVE A CLIENT THAT WANTS TO BUTY A HOME UNDER LAGOS HOMS. WHAT DO I DO?

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  Since the Scheme is strictly for the home owner we recommend that you advise your client to apply for a home under the Scheme directly.

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  WHO IS A FIRST-TIME BUYER (FTB)

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  Lagos State residents entering into the property market for the first time are classified as FTBs. FTBs do not own any home; neither are they beneficiaries of any allocation of Lagos State land anywhere within the territory of Lagos State. FTBs do not own (in part or in full) any property within the territory of Lagos State and will depose to a Buyer’s Affidavit attesting to being a First Time Buyer.

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  HOW DOES IT WORK?

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  Upon completion, the homes will be handed over to the Lagos State Mortgage Board (“the LMB”) to be administered.

  The LMB will pre-qualify applicants for a Draw to be conducted at regular intervals, while the Lagos Building Investment Company Ltd. (the LBIC) will process mortgage loans for successful applicants to buy the home. Click on the Link What Do I Need to Know? on the Lagos HOMS website(www.lagoshoms.gov.ng) for detailed information on how the Scheme works. 

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  WHO MAY APPLY?

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  All Lagos State residents above 21 years of age, who meet the Eligibility Criteria of the Scheme, may apply. 

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  I HAVE JUST RETURNED TO THE COUNTRY AFTER LIVING ABROAD FOR OVER THREE YEARS, AM I ELIGIBLE TO APPLY FOR THE SCHEME

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  Anyone who meets the Eligibility Criteria of the Scheme can apply. However, the Scheme requires amongst others that Applicants must be primarily resident in Lagos State and be tax compliant with  proof of tax payment for the last 5 (Five) years prior to applying.

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  ARE STUDENTS ELIGIBLE TO APPLY?

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  The general rule is that applicants must meet the Eligibility Criteria,including providing proof of tax payment for the last 5 yearsand proof of an income that will enable them meet their monthly repayments. If any students fall within this category, they are eligible.

   

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  IS THERE AN AGE LIMIT FOR ME TO BE ELIGIBLE FOR LAGOS HOMS MORTGAGE?

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  The minimum age to apply for a home under Lagos HOMS is 21 years. There is no maximum age. Your eligibility will be based primarily on your ability to make your monthly repayments.

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  CAN I HAVE A CO-APPLICANT?

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  Yes, but both of you have to be individually eligible under the Lagos HOMS Scheme and you will own joint Title to the home if successful.

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  WHERE CAN I FIND INFORMATION ON THE AVAILABLE HOMES?

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  Please visit http://www.lagoshomes.gov.ng/homes for the size, type and location of available homes.

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  I\'M INTERESTED IN LAGOS HOMS. WHAT IS THE PROCESS?

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  Please click on the link to the 5 easy steps for the 5 (Five) easy steps to owning your own home.

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