In recent times, due to the recent global economic recession and its ripple effects ,  people find it increasingly difficult to access mortgage finance

from financial institutions. In the U.S, even though house prices have steadilydropped in the past  two years, mortgage providers expect higher

equity contributions. In addition,  borrowing requirements have become increasingly stringent, making it more difficult for people to

secure loans.

In Nigeria, financial institutions have also become more and more obstinate in their review of mortgage applications. The sub-sector is yet to

recover from enormous losses it recorded from massive non-performing loans. Apparently shell-shocked by the situation, the sub-sector reacted

by a virtual shutdown on credit. Obtaining mortgage for property acquisition at the moment is very difficult, almost a trial by ordeal. The current

attitude of financiers has implications for the real estate sector, which are mostly adverse.

The most apparent of these implications is the challenge created for thousands of individuals hoping to buy properties. If you do not have

personal funds, it may be extremely hard to acquire property, maybe impossible. Sadly, for many people that hoped the crash in the housing

market would favour acquisition, such expectation has become a pipe dream, as they do not have personal cash to back it up.

For real estate agency practitioners, transactions in property sales have reduced considerably. Other real estate services, such as valuation and

management among others, are also experiencing downturn. Real estate practitioners and allied professionals are having hard times arising from

lull in business owing partly to lack of mortgage finance. Development companies would have flourished considerably if potential purchasers

have access to funds. The continuous restraint in credit portends a serious affront to their business operation.

Financial institutions themselves will not remain unaffected by their position, since mortgage finance is one of their income sources. Though the

position of financial institutions is understandable in view of the recent economic recession, it is becoming apparent that this stand needs to

change for the real estate sector of the economy to improve.

Presently there have been calls on the government to rejuvenate the National Housing Fund as a means of remedying the increasingly gloomy

situation. This however cannot be achieved without help from the private sector. Needless to say though, if the position remains the same, the

ripple effects may be severe.