Q. What if I want to buy a ready built home or pay for a house being built in stages by a developer as part of an estate?
A. Then our Home Acquisition Plan is the plan for you. This allows you to acquire a ready built home or one being constructed by a developer as part of an estate
Q. How long does the plan run for?
A. A maximum of 84 months. Your mortgage will have to terminate before your date of retirement and this date is not to exceed the prevailing statutory retirement age.
Q. Will you give me the money to pay for the house?
A. If you are buying a ready built house, we disburse the mortgage in full into your account and raise a draft from there in the name of the seller. We will pay the vendor directly in exchange for the original title documents. If you are buying “Off plan” i.e. you are buying a house which is being built by a developer in an estate, we will disburse the mortgage in tranches according to the construction timetable. We will also pay the developer directly in exchange for the original title documents. This actually protects you as the sums disbursed and payments made to the developer will reflect the value of work to be done on the property or the funds required to complete the next stage of construction. Plus, you only have to pay interest on the sums disbursed, rather than the approved mortgage limit
Q. What happens to the title documents?
A. The title documents are put in the safe keeping of the Bank throughout the life time of the mortgage
Q. What is the lowest amount that I may request for?
A. The minimum that you may request for is N500,000.00
Q. What is the maximum amount that I may request for?
A. The maximum that you may request for is 60% of the cost of the property to be financed; however this is subject to a ceiling of N 50million and the Forced Sale Value of the property. The maximum amount which we may lend to you is also determined by your cash flow. e.g. If you have taken other loans, we will factor this into our decision making process.
Q. How long will it take before I receive a decision?
A. Our Home Loans ensure that a decision is conveyed to you in 5 working days after you have submitted your application and all the required documents.
Q. Do I need to contribute any money?
A. Yes. If you are a salary earner, you are required to contribute a minimum of 40% of the cost of the property to be financed before the loan is given to you. If you are self employed, you are required to contribute a minimum of 40% of the cost of the property to be financed before the loan is given to you
Q. How many houses may I buy at once?
A. You may purchase several at once just as long as your cash flow is sufficient to service the total amount that has been borrowed.
Q. Will the house be insured?
A. Yes. A Home Protection Insurance policy will be taken out on the property to be financed. The Home Protection insures you against fire or peril.
Q. Do I have to take out a policy on the loan?
A. Yes. A Mortgage Protection Insurance policy will be taken. The mortgage protection insures the loan against loss of income as a result of death, permanent disability or job loss
Q. May I borrow money from another bank using the property?
A. The property cannot be used to borrow money from another financial institution until the mortgage loan is completely liquidated but here’s some good news, in a situation where your property appreciates in value while your mortgage is still running, you may approach us to unlock the equity in your property as a Home Equity Loan, provided that your total exposure does not exceed N 50 million and the forced sale value of your property
Q. How do I make payment for a search report?
A. We will deduct the fees for the search from your personal current account with Oceanic Bank through an authorization from you. In this regard, the payment for the cost of the search fee will be deposited into your account.
Q. What if I don’t have a personal current account with Oceanic Bank?
A No problem. If you don’t already have an Oceanic Bank personal current account, then you will be required to complete an account opening package and one will be opened for you.
Q. What if I’ve already hired a lawyer to conduct a search? Will Oceanic Bank accept my lawyer’s search report?
A. Our lending policy stipulates that the search will be conducted on the property by a lawyer appointed by the bank
Q. How long will it take the Oceanic Bank’s lawyer to conduct a search?
A. It usually takes 48 hours for a search report to done. However, at times there may be a delay at the lands registry as a result of inefficient record keeping of land titles. But be assured that if there are any delays, we will immediately communicate them to you.
Q. What happens after the search report is out?
A If the search report is favourable, your account officer will then ask you to complete a Consumer Credit Application form and submit the following:
If you are a confirmed employee of an organization:
• An offer letter from the seller
• For off-plan purchases: the developer’s timeline.
• Your employer’s letter of undertaking.
• If your employer will not provide a letter, a copy of your employment contract and staff ID card will suffice
• If you have not operated a salary account in Oceanic Bank for at least 6 months, please provide a statement of account for the period at the other Bank where your salary was paid, to make up a 6 month history. The statement must be endorsed by an officer in the other Bank who is authorized to do so
If you are self Employed:
• An offer letter from the seller
• For off-plan purchases: the developer’s timelines
• If you have not operated a business account in Oceanic Bank for at least 6 months will provide a statement of account for the period at another Bank to make up a 6 month history. The statement must be endorsed by an officer in the other Bank who is authorized to do so.
Q. Why am I providing all these documents?
A. These documents are needed by the Bank in order to carry out an appraisal of your income. It is based on this appraisal that we will issue you a first offer
Q. What do you mean by a first offer?
A. Our first offer is made based on an appraisal of your income and the loan amount against the value of the property. The loan amount may change after the valuation of the property. Our final offer will be conveyed to you in the mortgage contract
Q. When will I be issued a mortgage contract?
A. A mortgage contract is issued once you have accepted our first offer and a valuation has been done on the property by Oceanic Homes Savings and Loans Ltd. We will also issue legal mortgage documents and consent to mortgage forms for your execution.
Q What else will I need to provide after the mortgage contracts have been issued to me?
A. You will also have to provide the following:
• An authorisation from you for the Bank to raise a draft in the name of the seller and also to collect the title documents from seller
• A letter from the seller that they will release the title documents to Oceanic Bank upon receipt of the draft
• If you are purchasing a home, off-plan, from a developer, the developer will have to provide a Performance Bond from a reputable insurance company or a bank
• Home Protection and Mortgage Protection Insurance from Oceanic Insurance
• Original copies of the Deed of Assignment or Deed of Conveyance or Sub-lease depending on the property type executed by you
• The Sale and Purchase agreements executed by you and the seller/vendor
• If you are self employed, an undertaking from your company to fund your personal account with funds to cover the instalment repayments until the full liquidation of the loan
• Your personal account funded for:
- Upfront fees
- Equity
- Insurance premium
- Security deposit
- For Off-plan purchases, only the Mortgage Protection Assurance premium is required
- The executed mortgage contract – 2 copies
- The executed Deed of legal mortgage - 6 copies
-The executed consent to mortgage – One copy
Q. So many documents! How can I keep up with all the documentation requirements!
A. You are not to worry. Our well-trained officers will be there to guide you every step of the way until you have acquired your dream home!
Home Acquisition Plan
