MOFI Launches 9.75% Mortgages to Tackle Housing Crisis

The Mortgage Finance Initiative (MOFI) has launched the Mortgage Real Estate Investment Fund (MREIF) with a fixed mortgage rate of 9.75%, aiming to tackle Nigeria's housing crisis. This initiative, coordinated by Finance Minister Wale Edun, represents a strategic shift towards a market-driven investment vehicle.

The MREIF is designed to bridge the housing finance gap, offering financing below double-digit interest rates in a climate where commercial mortgage rates range from 18% to 25%. The fund has achieved an AAA rating from Agusto & Co. and an AA rating from GCR, establishing itself as a credible platform for issuing single-digit mortgages.

As of now, MREIF has reached 1,500 beneficiaries across 24 states, unlocking a total property value of N190.98 billion. The fund's success hinges on maintaining low interest rates without succumbing to inflationary pressures and ensuring accessibility for average Nigerians.

The next 12 to 24 months will be critical in assessing the fund's viability and its ability to scale effectively.