Home Construction Mortgage Loan Agreement

1. Parties

Lender / Fund: MOFI Real Estate Investment Fund (“MREIF”, the “Fund”, “we”, “us” or “our”), a Federal Government-backed housing finance initiative sponsored by the Ministry of Finance Incorporated (“MOFI”) and managed by ARM Investment Managers Limited (“ARMIM”) as Fund Manager.
Address: c/o ARM Investment Managers, First Floor, Tsukunda House, 1446, Off Plot 1008 Constitution Avenue, Central Business District, Abuja, FCT, Nigeria.

Borrower: Semiu Aderogba Ashiru, of Zamfara State, Nigeria (the “Borrower”, “you” or “your”), being the applicant whose personal, employment and financial details were submitted to MREIF during application and onboarding.

Participating Financial Institution (“PFI”): First Bank of Nigeria Limited, being the eligible bank that originates, underwrites, disburses and services this Loan on behalf of the Fund. Where a PFI is appointed, references to “we” in this Agreement include the PFI acting for and on behalf of the Fund.

2. Purpose of the Loan

The purpose of this Loan is to finance the construction of a residential property (the “Property”) on land owned or lawfully secured by you and approved under the MREIF programme. You agree to use the Loan strictly for the construction works, professional fees and associated costs directly related to completing the Property (such as approved building plans, contractor payments, valuation, perfection of title and insurance), unless we approve another use in writing.

The Loan is available for one residential unit per borrower under MREIF financing. It may not be applied to commercial, industrial, speculative or resale-for-profit purposes.

3. Definitions

In this Agreement, the following words have the meanings set out below:

• “Equity Contribution” means the upfront contribution you must provide towards the construction cost, being not less than ten per cent (10%) of the total project cost.
• “Loan” means the home construction mortgage facility provided under this Agreement.
• “Loan Amount” means the principal amount approved and disbursed to you, or paid on your behalf to contractors, suppliers and professionals.
• “Property” means the residential property (land and building under construction) described in your application and approved by us, over which a legal mortgage will be created as security.
• “Tenor” means the repayment period for the Loan, being ten (10) years (120 months) as selected by you, subject to a maximum of twenty (20) years and to your age and our credit criteria.
• “Interest Rate” means the fixed interest rate of 9.5% per annum applicable to the Loan for the entire Tenor.
• “Monthly Instalment” means the monthly repayment amount due from you, calculated on an amortised (reducing balance) basis using the Interest Rate over the Tenor.
• “Staged Drawdown” means the release of the Loan in tranches against verified construction milestones and independent valuation.
• “Designated Repayment Account” means the bank account or collection channel we provide to you for repayment by direct debit, standing order or bank transfer.
• “Pension-Backed Mortgage” means a mortgage structure in which repayments may be supported by remittances from your Retirement Savings Account through your Pension Fund Administrator, where applicable and approved.
• “Business Day” means a day other than a Saturday, Sunday or public holiday in Nigeria.

4. Eligibility

The MREIF mortgage is available to Nigerian citizens who meet the Fund’s credit, income and documentation criteria. By accepting this Agreement, you confirm that:

• You are a Nigerian citizen aged twenty-one (21) years or above, and will not be older than sixty (60) years on the expiry of the Loan;
• You have a satisfactory credit history and verifiable, sustainable income (salaried, self-employed, business or diaspora income);
• You can provide the required Equity Contribution of at least 10% of the construction cost;
• You have a good and marketable title to the land on which the Property will be constructed, and approved building plans for the works;
• All information and documents you provide during application, verification and onboarding are true, accurate, complete and not misleading.

5. Loan Amount, Interest Rate & Monthly Repayment

The Monthly Instalment remains fixed for the entire Tenor because the Interest Rate is fixed. Amounts are rounded to the nearest Naira and are indicative until your final mortgage offer and repayment schedule are issued. For construction, the Loan is released in staged drawdowns and interest accrues on amounts actually disbursed. The exact first repayment date will be communicated to you after first disbursement.

6. Interest Calculation & Fees

Interest is calculated on the reducing outstanding principal balance at the fixed annual rate of 9.5%. There are no hidden processing fees, early repayment penalties or unexpected charges under this Loan, unless expressly stated in your final offer letter.

Third-party costs remain your responsibility unless we agree otherwise in writing. These include, without limitation: land and property valuation fees, legal and title perfection fees, building plan and development approval fees, contractor and professional fees, stamp duty and registration fees, insurance premiums, inspection costs and any statutory charges applicable to the Property.

7. Equity Contribution

You must provide the required Equity Contribution of — in the manner communicated to you during onboarding. Your Equity Contribution must be verified and confirmed before disbursement. We may decline to proceed with the Loan where the Equity Contribution is unverified, incomplete or sourced in a manner that does not meet our compliance requirements.

Where a construction project does not proceed for reasons not caused by MREIF, any refund of sums already paid to a contractor, developer or supplier is subject to that party’s policies and actual recovery of funds. We are not responsible for delays or refusals by third parties to refund monies.

8. Disbursement

Disbursement occurs only after you have completed all requirements communicated during onboarding, including verification, credit approval, confirmation of your Equity Contribution, perfection of security and satisfaction of any conditions in your offer letter.

The Loan Amount of — shall be disbursed to your First Bank of Nigeria Limited account (the account details you provided during onboarding). For construction, disbursement may be made in staged drawdowns against verified project milestones and independent valuation, and each tranche will be released to that First Bank account or paid directly to approved contractors and suppliers on your written instruction.

You agree to provide any documents we reasonably request to complete the construction and drawdown process (such as approved building plans, bills of quantities, contractor agreements, invoices and payment instructions). Once funds are credited to your First Bank account, you are responsible for applying them solely to the construction of the Property.

9. Repayment Terms

Repayments shall be made monthly by direct debit, standing order or bank transfer to the Designated Repayment Account. Your Monthly Instalment is due on the same day each month, commencing from the first repayment date shown in your repayment schedule.

Where your Loan is a Pension-Backed Mortgage, you authorise us and your Pension Fund Administrator to apply the agreed remittance towards your Monthly Instalment, and you remain liable for any shortfall. You are responsible for ensuring every repayment is made on or before the due date, for keeping evidence of payment, and for providing it on request. Missed or late repayments may affect your credit standing and your eligibility for future MREIF financing.

10. Early Loan Settlement (No Penalty)

You may settle the Loan in full or in part before the end of the 120-month Tenor without any early repayment penalty. You may request an outstanding balance or payoff statement from us before settlement. Settlement is completed only when cleared funds are received in the Designated Repayment Account and the legal mortgage is discharged in accordance with Nigerian law.

11. Security, Title & Insurance

The Loan is secured by a legal mortgage over the Property (land and building, including the works as they progress) in favour of the Fund and/or the PFI. You agree to execute all documents and take all steps required to create, perfect and register that security, including consent to the registration of the mortgage at the relevant Lands Registry.

The land on which the Property is being constructed must have a good and marketable title acceptable to us, free from encumbrances other than the mortgage created in our favour. You must insure the Property (including construction all-risk cover during the works) with a reputable insurer acceptable to us for its full replacement value throughout the Tenor, with our interest noted on the policy, and you must keep the Property in good repair and condition.

We may request proof of title, building approvals, insurance, tax payments and other property documentation at any time during the Tenor, and you agree to provide them within a reasonable time.

12. Construction Standards, Approvals & Valuation

The Property must be located in a State where MREIF financing is available, must be constructed in line with approved building plans and applicable planning, structural and habitability standards, and must be valued by an independent valuer appointed or approved by us at the relevant stages of construction.

Where the Property is being built by a developer or contractor, that party must be verified and acceptable to us, and the contract must be assignable to the Fund and/or the PFI where we require it. The Loan Amount will not exceed the lower of the approved limit, the valuation figure, the verified construction cost, or the amount supported by your assessed repayment capacity.

13. Borrower Undertakings

You agree that you will:

• Repay the Loan strictly in accordance with the repayment schedule provided to you;
• Promptly notify us of any change to your contact details, address, employment or business status, income, or bank account details;
• Not use the Loan for any unlawful purpose or for any purpose other than the construction of the Property approved by us;
• Apply all drawdowns solely to the approved construction works and provide evidence of utilisation when requested;
• Not sell, transfer, lease or part with possession of the Property or the land without our prior written consent while any part of the Loan remains outstanding;
• Maintain adequate insurance on the Property and pay all rates, taxes, levies and charges due on it;
• Cooperate with reasonable requests necessary for loan administration, monitoring, valuation, inspection and repayment tracking;
• Provide any additional documentation reasonably required for regulatory, anti-money-laundering or know-your-customer compliance.

14. Events of Default

An Event of Default occurs if:

• You fail to make any repayment on the due date, subject to any grace period communicated to you;
• You provide false, forged or materially misleading information or documents;
• You breach any material obligation under this Agreement and fail to remedy it within the period we specify in writing;
• You divert any drawdown away from the approved construction works without our written consent;
• You become insolvent, are declared bankrupt, or become subject to receivership, liquidation or similar proceedings;
• The Property is materially damaged, compulsorily acquired, or the security becomes impaired without adequate replacement or reinstatement;
• You sell, transfer or encumber the Property without our prior written consent.

15. Consequences of Default

Where an Event of Default occurs and is not remedied, we may declare the entire outstanding balance (including accrued interest and any recoverable costs) immediately due and payable, and may take appropriate lawful steps to recover all outstanding amounts. Recovery may include demand notices, engagement of recovery professionals, enforcement of the legal mortgage over the Property, arbitration and/or court proceedings, and any other remedies available under Nigerian law.

You remain responsible for all outstanding amounts under this Agreement until fully settled. We may also report default events to licensed credit reference bureaus, which may affect your creditworthiness and your ability to obtain credit in future.

16. Disclaimer on Construction, Contractors & Third Parties

MREIF is a housing finance initiative and is not the developer, contractor, builder, supplier or seller of the Property. We do not warrant the condition, fitness, durability, workmanship, title (beyond the verification we carry out) or performance of the Property, nor the conduct or solvency of any developer, contractor, supplier or professional engaged on the project.

You are responsible for selecting and supervising your contractor and professionals, for inspecting and verifying the works and materials, and for obtaining independent legal, technical, structural and valuation advice where appropriate. We are not liable for disputes between you and a developer, contractor, supplier or professional, or for losses arising from defects, delays, cost overruns, breakdowns or operational issues affecting the Property. Any contractor or manufacturer warranty is provided solely by that contractor or manufacturer.

17. Notices & Communications

We may contact you using the email address, phone number, WhatsApp number or postal address you provided during registration. You agree to receive electronic communications regarding this Agreement, including repayment reminders, drawdown updates, statements and notices. It is your responsibility to keep your contact information up to date. Official notices are deemed received forty-eight (48) hours after sending by email or WhatsApp, or five (5) Business Days after posting by registered mail.

18. Data Protection & Consent

You consent to the collection, use, storage, processing and disclosure of your personal data by MREIF, the Fund Manager, the PFI and their service providers for the purposes of loan processing, credit assessment, underwriting, disbursement, servicing, recovery, regulatory reporting and compliance, in accordance with the Nigeria Data Protection Act and applicable regulations. Your data may be shared with credit bureaus, valuers, insurers, legal advisers, contractors, regulators and other parties where necessary for these purposes or where required by law.

19. Governing Law & Jurisdiction

This Agreement shall be governed by and construed in accordance with the laws of the Federal Republic of Nigeria. Any dispute arising out of or relating to this Agreement shall first be referred to good-faith negotiation. If unresolved, the dispute shall be submitted to the exclusive jurisdiction of the courts of the Federal Capital Territory, Abuja.

20. Amendments & Severability

No amendment to this Agreement shall be effective unless made in writing and accepted by both parties. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

21. Acceptance of Agreement

By clicking the “I Agree” button below, you acknowledge that you have read, understood and agree to be bound by all the terms and conditions of this Home Construction Mortgage Loan Agreement. You further confirm that all information provided to MREIF is true and complete, and you consent to the collection, use and processing of your personal data for loan administration, underwriting and legal compliance purposes.