HDAN Proposes Mortgage Guarantee Framework to Expand Housing Finance Beyond Salaried Workers

The Housing Development Advocacy Network (HDAN) has proposed a national mortgage guarantee and inclusion framework aimed at expanding access to housing finance beyond formally employed, salaried Nigerians. The proposal seeks to bring more private capital into the mortgage market while opening pathways for traders, artisans, farmers, entrepreneurs and other individuals with legitimate but irregular income streams.

The initiative comes against the backdrop of Nigeria’s persistently low mortgage penetration and the reality that a large share of the working population operates outside traditional salaried employment.

What HDAN Is Proposing

At the centre of the proposal is a coordinated National Mortgage Guarantee and Inclusion Framework that would bring together key institutions, including:

HDAN argues that these institutions currently operate with complementary strengths but often in a fragmented manner. A more coordinated framework, the group says, would allow each player to contribute more effectively.

A core element of the proposal is a mortgage guarantee mechanism. Under this concept, government-backed institutions would share an agreed portion of the credit risk on qualifying mortgages. The goal is to reduce the risk exposure of lenders and encourage them to extend credit to a broader range of borrowers.

Why This Matters

Traditional mortgage underwriting in Nigeria heavily favours applicants with stable, documented monthly salaries. This automatically excludes or disadvantages large numbers of Nigerians who earn sustainable incomes through trading, skilled trades, farming, small businesses and other informal or semi-formal activities.

HDAN’s position is that the absence of regular salary slips should not automatically disqualify creditworthy individuals who can demonstrate consistent income and repayment capacity through alternative means.

By introducing a risk-sharing guarantee, the proposal aims to:

• Lower the perceived risk for lenders
• Encourage more inclusive underwriting standards
• Attract additional private capital into housing finance
• Support higher volumes of mortgage origination over time

Important Safeguards Highlighted

HDAN has cautioned that any guarantee scheme must be carefully designed. The group emphasised the need for:

• Clear eligibility criteria
• Sound underwriting standards
• Transparent risk-sharing arrangements
• Effective monitoring and consumer protection measures

The intention is to expand access responsibly rather than encourage reckless lending.

Potential Impact on the Market

If developed and implemented effectively, a functional mortgage guarantee framework could:

• Broaden the pool of eligible mortgage applicants
• Improve lender confidence in non-traditional borrower segments
• Support higher transaction volumes in the mid-market and affordable housing segments
• Complement existing efforts by FMBN, MREIF, FHFL and primary mortgage banks

Progress will depend on the level of institutional coordination, the design of the guarantee instrument, and the willingness of lenders to adapt their credit assessment processes.

What Stakeholders Should Watch

Key developments to monitor in the coming months include:

• Any formal response or engagement from government and regulatory authorities
• Details on the proposed structure, coverage and pricing of the guarantee
• Pilot programmes or phased implementation plans
• Feedback from commercial banks and primary mortgage banks

Final Thoughts

HDAN’s proposal addresses one of the structural limitations of Nigeria’s housing finance system: the heavy reliance on salaried employment as the primary gateway to mortgages. By advocating a coordinated guarantee and inclusion framework, the group is pushing for a more realistic alignment between how many Nigerians actually earn and how the mortgage market assesses credit risk.

Whether the proposal gains traction will depend on follow-through from policymakers and industry stakeholders. In the meantime, it adds important momentum to the conversation about making housing finance more inclusive in 2026 and beyond.

What are your thoughts on expanding mortgage access beyond salaried workers? Share your perspective in the comments.

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