Diamond Mortgages

Products and Services

1. NHTF Loan Account

This product is designed specifically for contributors to the National Housing Trust Fund.

The scheme was established in 1992 for workers to contribute 2.5% of their basic salary into the fund to be used to grant mortgage loans to them at very concessionary terms for the purchase, building, expansion or renovation of their houses.

The funds can be accessed through a Primary Mortgage Institution (PMI) accredited by FMBN.

Diamond Mortgages Limited has designed this product to enable our customers that are contributors to the NHTF scheme to access the loan from Federal Mortgage Bank.

Features:

• Maximum loan amount is N5 million.
• Contributors benefit only once in their life time.
• Interest rate currently at 6%.
• Tenor is subject to the difference between applicant’s age and sixty (60) years or length of service years remaining, whichever is earlier.
• Monthly repayment shall not exceed one-third of beneficiary’s gross monthly emolument.

What to do:

*Open a Diamond Mortgages NHTF Account.
*Application must be made on a prescribed NHTF loan application form.
* * Three passport-sized photographs of loan applicant.
* Past 3 years income tax clearance certificate.
* Have a satisfactory evidence of regular flow of income to guarantee loan repayment
– include past three months pay slip for an employee
_ statement of account for self – employed individual contributors
* 10% equity contribution.
* Submit photocopies of valid title documents to land. Viz; Certificate of Occupancy,
Deed of sublease/assignment of certificate of occupancy (C of O), Deed of
Conveyance
* Valuation report is required for buying an existing building.
* An approved building plan.
* Approved survey/site plan.
* Priced Bill of Quantities bearing the stamp, seal and signature of a registered
Quantity Surveyor where applicable.
* Valuation report prepared by a firm of registered surveyors.
* Letter of introduction from employer stating present position and annual emolument.
* Letter of undertaking from employer:
- To communicate current terminal benefit to Diamond Mortgages Ltd.
- To remit monthly repayment (optional) and if employment ceases, part or whole of terminal benefit will be remitted to liquidate facility.
* In case of buying existing property:
- Offer letter from vendor.
- Letter of Acceptance from Buyer
- Submit letter of allocation (For Government Houses/Developers Estates).
- Letter of commitment from vendor to deliver title documents directly to Diamond
Mortgages Ltd upon final payment.
- The draft for the balance of the purchase price will be exchanged with original title
documents in DML office after the approval of the facility
- Deed of Sale between Vendor and Purchaser which includes the clause that the
Vendor will execute a Deed of Assignment upon receipt of balance of payment.
- Copy of NHTF Passbook showing updated remittance

Benefits:

• Low interest rate of 6%.
• Long tenor of 30 years to ease repayment burden.
• Fixed –rate mortgage throughout the duration of the loan so no need to worry about fluctuating interest rates.
• The loan amount you benefit is much more than your contribution into the Fund.
• Settle yourself into your home before you retire.

2. Home Ownership Account (DMHOA)

This is a special product for Diamond Mortgages Limited customers.
Product’s target is to assist customers to build, buy, renovate, refurbish or expand their homes/real estate a house.

The target market comprises of middle and upper classes especially business executives, middle management, senior staff of the civil service, oil and gas, banks, traders and business men and women.

Features:

*Ten years tenor or less.
*Flexible means of repayment: monthly, quarterly or lump sum payment of principal + interest.
*Payment can be made by cash, cheque, direct debit/standing order from any bank or direct deduction from employee’s salary.
*Monthly repayments should not exceed one-third of customer’s salary/income.
*No further collateral required.
- Build up 20% of their equity contribution in 6 months before applying for loan.
- Build up 30% of equity contribution in one year before applying for loan.
Loan applicants without previous account relationship with DM Ltd are required to provide lump sum 40% equity contribution for immediate loan processing.

What to do:

*Open a Diamond Mortgages Home Ownership Account.
*Application must be made on a prescribed mortgage loan application form.
* Personal profile of applicant.
* Three passport-sized photographs of loan applicant.
* Past 3 years income tax clearance certificate.
* Have a satisfactory evidence of regular flow of income to guarantee loan repayment
– include past three months pay slips. Statement of account, cash book/cash flow projection of a business, Audited Accounts for three years, Management Account for 6 months
* 20% equity contribution.
* Submit photocopies of valid title documents to land. Viz; Deed of
sublease/assignment of certificate of occupancy (C of O)
* Valuation report is required for buying an existing building.
* An approved building plan.
* Approved survey/site plan.
* Priced Bill of Quantities bearing the stamp, seal and signature of a registered
Quantity Surveyor where applicable.
* Valuation report prepared by a firm of registered surveyors.
* Letter of introduction from employer stating present position and annual emolument.
* Letter of undertaking from employer:
- To communicate current terminal benefit to Diamond Mortgages Ltd.
- To remit monthly repayment (optional) and if employment ceases, part or whole of terminal benefit will be remitted to liquidate facility.
* In case of buying existing property:
- Offer letter from vendor.
- acceptance of Offer by Buyer
- Submit letter of allocation (For Government Houses/Developers Estates).
- Deed of Sale between Vendor and Purchaser which includes the clause that the
Vendor will execute a Deed of Assignment upon receipt of balance of payment.
- Letter of commitment from vendor to deliver title documents directly to Diamond
Mortgages Ltd upon final payment.
- On approval of the facility, Vendor and Purchaser will come to DML for the exchange of Draft with the Original Title Documents and execution of the Deed of Assignment

Benefits:

*Interest to be paid on the balance on customer’s DML account.
*Long tenor to ease repayment burden.
*Flexibility of repayment options.
*Beneficiaries can also access the NHTF loan scheme to supplement if they are
contributors.

3. Group Housing Loan Scheme

This is a housing development or house purchase loan available to a group of individuals represented by their employee/Company or their Company’s Cooperative Society.

The various options are available:

• The Company/Cooperative Society may advance the cost of purchase or construction of the house while DML will manage the construction and administer recovery of the loans and pass over to the company.
• DML will advance the mortgage loan to the group of workers on the guarantee of the Company/Cooperative Society.
• The Company/Cooperative Society will deposit a lump sum e.g. 30% equity contribution for the group while DML finances the balance.
• DML will loan the construction/purchase cost to the company at commercial rate and charge administration fees for the construction and management.
• DML will approve a global limit in the name of the Company/Co-operative and grant individual loans to benefiting members on agreed terms between DML and the Company/Co-operative or as instructed by the Company/Co-operative
• The Company/Co-operative will deposit an amount equal to a % of its members housing allowance on an annual/quarterly or monthly basis and DML will advance loan facilities to the specific qualified members for the property to be purchased, renovated, built, expanded, etc
• The Company/Co-operative will deposit an amount equal to a % of its members emoluments/entitlements and DML will advance loans to its benefiting members to satisfy their housing needs

What to do:

• For options ii and iii the company will also make a lump sum deposit at a negotiated interest rate and this will act as a guarantee against default in repayment by loan beneficiaries.
• In line with ii and iii the company/cooperative society will undertake to recover any outstanding balance of the loan from the separation benefit of the beneficiaries upon exit from the company.
• The company will also undertake to make monthly deductions from the salary of the loan beneficiaries and pass same to DML monthly.
• For options ii, v, vi and vii the list of benefiting/qualified members will be given to DML
• Benefiting members will open individual loan accounts upon the approval of the facility
• The Company/Co-operative will screen the applications of benefiting members before sending to DML
• A Letter of Undertaking/Indemnity from the Company/Co-operative to pay the members outstanding balance in case of any default (By this DML can accept a village property as collateral. This requirement will be included in the Memorandum of Understanding between the parties)

Features

• Ten years tenor or less
• Flexible means of repayment: monthly, quarterly or lump sum payment of principal and interest.
• Payment can be made in cash, cheque, direct debit/standing order from any bank or direct deduction from employees salary.
• Monthly repayment not exceeding one-third of customer’s salary for options i to iv
• The collateral is the land for which the facility is sought
• Guarantee of the Company or Cooperative Society.
• Tripartite agreement authorizing direct monthly debits to the employee’s salary.
• No contribution from benefiting members under options vi and vii
• Also DML will remit monthly interest on the Fixed deposit to the Company or Co-operative
• Letter of Undertaking/Indemnity from Company or Co-operative Society
• Company or Co-operative makes direct repayment on a monthly basis on behalf of its members or
• Each benefiting member issues post dated cheques for an initial 24 months
• The total amount of loan advanced to each beneficiary will not exceed an agreed amount, e.g. % of Annual Housing/emolument/entitlement or a stated amount
• The total amount granted will not exceed a % of the deposit with DML
• For options vi and vii the deposit will attract fixed deposit interest rate for the duration of the facility
• The interest rate charged under options vi and vii will be a negotiated spread above the fixed deposit rate. (Therefore the lower the fixed deposit rate the lower the interest rate charged)

Benefits:

This is a fixed deposit account with a high interest yield designed for medium to high net worth individuals wishing to earn good return from their surplus funds.

The return in this investment is volume and tenor dependent.

Features

• Minimum tenor of 30 days
• Minimum investment amount is N100, 000
• Interest rate is market driven

Benefits:

• The investment certificate can be used as a collateral for DML loan
• Interest income is not subject to withholding tax or any form of tax
• Interest rate is negotiable
• Deposit N10million and above attract a bonus of 1% per annum if fixed for 365 days or more.

5. Child Savings Scheme

The focus of this product is the building up of long term and cheep deposit liabilities. The school fee for a four year academic program in a Nigerian University is estimated at between N1million – N1.5million. This product is aimed at assisting parent/guardian to save the future school fees payments of their children/wards much more conveniently.

The Child Savings Scheme will target pupils from the Primary and Secondary school levels as well as those in the Tertiary institutions.

Features:

• Account will be opened in the name of the child
• Age qualification: 18 years and below
• Interest rate per annum is 1% higher than the normal savings account (subject to money market conditions)
• Minimum balance retainable in the account is N20,000.00

Benefits:

• Account with an average daily balance of at least N50, 000.00 over a year period shall qualify for raffle draw. The prizes to be won include laptop computer, television set (14”), bicycle, weekend holiday excursion to any resort of customers choice within the country. Prizes will be awarded according to predetermined average daily balances.
• Minimum opening deposit is N5, 000.00; however, each account opened with a deposit above N20, 000.00 will attract gifts.
• Any account with an average daily balance of at least N1million over one year period will automatically receive a gift in addition to qualifying for the raffle draw.
• If an account average daily balance increase by at least N100, 000.00 at the end of every month, the branch will credit the account with a bonus equal to 1% of that increase.

6. Business Growth Scheme

This product is for people wishing to start a small scale business of their own or require loan to grow existing business.

Open a saving account with N5, 000.00 and make a continuous minimum monthly deposit of N5, 000.00 and above.

Benefits

• Generous interest at 6% on deposits
• Loan availability of between N100,000.00 to N200,000.00 after 12 months of operating the account
• Favourable interest rate on loan of 2% below prime rate.
• Free business development plan/Advisory services
• Use of cheques
• COT free (or lower COT rate)