Open AccessAnalysis of the factors influencing access to mortgage finance in Lagos, Nigeria
Author(s) -
Solomon O. Olawumi,
Amos A. Adewusi,
Abiodun Kolawole Oyetunji
Publication year - 2019
Publication title -
global journal of business, economics and management
Language(s) - English
Resource type - Journals
ISSN - 2301-2579
DOI - 10.18844/gjbem.v9i3.4430
Subject(s) - collateral , finance , commercial mortgage backed security , real estate , business , collateralized mortgage obligation , loan , secondary mortgage market , shared appreciation mortgage , mortgage underwriting , project finance , real estate investment trust , investment (military) , mortgage insurance , financial system , capitalization rate , casualty insurance , politics , political science , law , insurance policy
Finance is the bedrock of real estate development. Its availability and accessibility are important for a successful investment. In most cases, investors don’t have substantial finance to execute a project; instead, they resort to an external source through mortgage financing. However, there are difficulties in accessing mortgage finance particularly due to borrower’s default, thereby hindering finance accessibility. This study investigates factors determining mortgage finance accessibility for providing real estate projects in Lagos State, Nigeria. The target populations are the Primary Mortgage Institutions and Real Estate Developers in Lagos State. The collected data were analysed using factor analysis and Mann-Whitney U test. The study revealed that income, nature of the occupation, type of collateral, years of the banking relationship, loan duration and loan sector are the major determinants of access to mortgage finance. These factors must be succinctly considered to ensure ease of access, adequate provision and utilisation for real estate development.
Keywords: Collateral, determinants, finance, investors, mortgage.