Gambo et al. / Journal of Building and Environmental Engineering Vol. 2, Issue 1 (2021) 81-88
JBEEJournal- Journal of Building and Environmental Engineering
Copyright © Publisher Scientific Academia Network (Scientiaca)
E-ISSN:2756-7826
ARTICLE
FINANCE ACCESSIBILITY AND AFFORDABILITY TO LOW-INCOME
EARNERS’ HOUSING OWNERSHIP IN BAUCHI LOCAL GOVERNMENT,
NIGERIA
Moses Jonathan Gamboa,*, Sani Usman Kunyab, Inuwa Yusuf Mohammedc , Musa Jacob Ashend
a Department
of Estate Management, Faculty of Environmental Technology, Abubakar Tafawa Balewa University Bauchi, Bauchi State,
NIGERIA
b,cDepartment of Building Technology, Faculty of Environmental Technology, Abubakar Tafawa Balewa University Bauchi, Bauchi
State, NIGERIA
d Department of Estate Management, Faculty of Environmental Sciences, University of Jos, Plateau State, NIGERIA
* Corresponding author: mjgambs@gmail.com
ARTICLE HISTORY
Received: 8 March 2021
Accepted: 26 May 2021
Published Online: 27 June 2021
KEYWORDS
Finance
Accessibility
Affordability
Low-income earners
Primary school teachers
ABSTRACT
Housing accessibility and affordability is not simply a matter of housing costs and income levels, but it is about
people’s ability to obtain housing and to stay in it, however this has proven to be impracticable to the lowincome earners particularly primary school teachers who can neither access nor afford housing finance. Hence,
this study examines the level of accessibility and affordability of housing finance to low-income earners in
Bauchi Local Government, Nigeria. A sample of 500 Bauchi Local Government Education Authority primary
school teachers, from a population of 5,474 teachers was drawn on the basis of simple random sampling. The
study's methodology included the use of self-administered structured questionnaires to collect data from
respondents. Descriptive analyses had been used for the data analysis through SPSS version 23. The findings
revealed that challenges in accessing housing finance have been a critical problem for respondents in the study
area, as well as the availability of collateral for bank security, which prevents respondents from affording
housing finance loans. It was suggested that financial institutions make housing finance loans available and
affordable to low-income earners in order to help primary school teachers realize their dream of owning a home
in Bauchi, Nigeria.
1.0 INTRODUCTION
H
ousing finance accessibility and affordability is not
simply a matter of housing costs and income
levels, but it is about people’s ability to obtain
housing and to stay in it. Darko (2012) argued that housing
finance assumes an essential role in moulding every
nation's more extensive housing framework and the
housing framework takes vital social and monetary results.
Then, it follows that the advancement of a reasonable
housing finance framework is of most extreme significance
in the developed economies.
Manda et al. (2011) stated that housing finance remains a
noteworthy obstruction to effective housing ownership,
particularly among the low-income earners. The affordable
housing problem is also a growing social and economic
issue in developed countries. According to the 2000 census,
housing affordability is an issue for 22.3 million
households (21.1 per cent) of American families (Denis,
2011). The Department of Housing and Urban
Development in the United States of America (USA)
declared that low income should be considered for any
household with less than 80 percent of the regional median
income. Housing affordability has therefore been identified
as an issue affecting a very large proportion of American
households. This can be described as the gap between very
poor incomes and the minimum cost of adequate shelter
(Okoroafor, 2007; Wa'el Abdulmoghni, 2010).
Lack of housing finance in Ghana results in poor and
insufficient housing consumption (Boamah, 2010). Most
people finance personal savings on their home acquisitions
(Boafo, Wuni & Wuni, 2017). Likewise, in Uganda only a
limited proportion of households can receive formal
mortgages because of insufficient housing financing
(Kalema & Kayiira, 2008). In South Africa, on the other
hand, considerable progress has been made in expanding
mortgage financing particularly for the black population
and the lower end of the market, although the progress has
been adversely affected by high interest rates and the
economic recession following the global financial crisis of
2008 (Cloete & Marais, 2020). In Ghana, for example,
traditional mortgage lenders are limited in their duty to
serve low-income individuals, as they need little
improvement for unrewarding incremental housing.
Zambian housing finance revolves around the relatively
"obvious" aims of providing housing financing to highincome earners, thereby excluding low-income earners who
make up the majority of the population. The South African
formal banking industry, like other developing countries,
still considers it overly risky to operate on the market for
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low-income earners, despite concerted government
attempts to fix housing inefficiency.
In Nigeria, according to Adedokun, Akinradewo and
Adegoke (2012), 60% of the new houses built up each year
are funded by personal income and savings and often with
the support of local cooperative societies (Kuma, 2016).
Finance focus has been prominent, because housing
requires huge capital costs, well beyond the capacities of
low-income earners. According to Afrane, Owusu-Manu,
Donkor-Hyiaman, and Bondinuba (2016), one of the
fundamental reasons why housing finance has been
underestimated is the large amount of capital required to
buy or lease a house. This is supported by Nakweenda
(2014), who claims that new initiatives in Ghana, Zambia,
and South Africa are not working for low-income earners.
Despite this, Ghosh, Goel and Ojha (2018) argued that the
overwhelming majority of housing finance activities for
housing ownership adopted by underdeveloped nations
governments frequently end up profiting high and middleincome earners. One of the key problems found in
developing countries is access to funding to create adequate
housing for low-income earners. Wapwera, Parsa and Egbu
(2011) indicated that in many nations the housing finance
sector is rising quite strongly, but access to housing
financing for low-income earners remains a problem that
may be the after-effect of financial regulations that do not
have a steady structure to support low-income housing
finance.
Access to housing by the poor who constitute the largest
percentage of the world population has remained a mirage
which needs to be holistically addressed. Olotuah (2009)
has observed that the disparity between cost and quantity of
housing on one hand, and the number of households and
the money available to them to purchase the little available
housing units in contrast, constitutes a great issue to
housing ownership. The price at which housing units reach
in the market plays a significant role in determining its
affordability. Where the cost of a house per unit is
unprecedentedly high only a few people can afford the
houses. Ironically, the low-income earners who constitute
the majority of the Nigerian society are the most affected
by the finance menace.
Atamewan, Eyo and Effanga (2017) studied appraisal of
availability and accessibility to mortgage finance for
sustainable housing delivery in Nigeria which focused on
university staff, the research identified the inability of a
high proportion of workers within the middle- and highincome groups to own houses. Adedeji and Olotuah (2012)
on the other hand studied evaluation of accessibility of lowincome earners to housing finance in Nigeria which also
focused on university staff. The study revealed that the
level of accessibility of low-income earners to housing
finance in Nigeria is still very low despite the
intermediation of private developers and cooperative
societies in sourcing housing finance.
Adedeji (2007) studied materials preference options for
sustainable low-income housing in selected cities in
Nigeria. The research revealed level of accessibility to
housing finance especially by low-income earners in
Nigeria and also assess their economically disadvantaged
position, which makes quality housing to be out of their
reach. Nwuba and Chukwuma-Nwuba (2018) studied the
barriers to accessing mortgages in Nigeria’s housing
markets and the study identified the barriers to include low
incomes and savings which `constrain households’ ability
to pay mortgage instalments and deposits, high interest
rates and inadequate loanable funds.
Okoroafor (2007) and Ferguson and Smets (2010)
identified and examined the most commonly used methods
of housing finance describing the processes involved by
focusing on the different methods of housing finance in
different countries in Latin America, Africa and other
developing countries. Although few researchers such as
those cited above have studied housing ownership,
accessibility to finance and affordability of the houses to
low-income earners in Nigeria, none have given attention
to Primary school teachers who are the least paid compared
to other academic staff at different educational levels in
Nigeria. The structural variables (finance accessibility and
affordability) in housing finance issues identified can be
structurally framed by scheming finance accessibility and
affordability as “finance context. Hence, the study
examines the level of accessibility and affordability of
housing finance to low-income earners in Bauchi Local
Government, Nigeria.
2.0 CONCEPT OF HOUSING OWNERSHIP
Housing ownership can be identified as the act of ensuring
that individuals in a network have a place to live; it could
be a house or another type of dwelling, cabin, or haven
(Green, 2017). According to Lemoine (2003) a housing
unit is a house, a flat, a manufactured house, a gathering, or
a solitary room that is involved (or if empty, is expected for
inhabitancy) as independent living quarters. However, A
house, according to Gavu and Owusu-Ansah (2019), is a
structurally separate and independent place of habitation
where a person or group of people can isolate themselves
from climate hazards such as storms and the sun. As a
result, the definition included any type of living quarters
shelter, such as detached houses, semi-detached houses,
flats/apartments, compound houses, huts, tents, kiosks, and
containers (Peprah & Obeng, 2015). Consequently, the
priority accorded the issue of housing is immense; to most
governments, the availability of sufficient but basic
housing for all is often stated as a priority for enhancing the
social needs of the society (Crouch, 2009). According to
Olatunbosun (2018) habitable housing contributes to the
health, efficiency, social behaviour and general welfare of
the populace. Apart from providing man with shelter and
security, housing plays a major role in serving as an asset
(Mandič, 2010). These variables decide the aggregate cost
of the residence and it brings about an extensive variety of
housing right, which stresses the substitutability of one
segment for another (Candela & Figini, 2012).
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2.1 Effective Housing Ownership
3.0 FINANCING OF HOUSING
The demand for effective housing ownership is derived
from each household‘s willingness to pay for housing. The
level of household income, its distribution and the prices of
available housing and of other goods and services are
important influences on decisions about how much to
spend on housing, so is the demographic pattern which
determine the growth of demand over time, The
distribution of income affects the affordability of housing
for different income earners (Aluko, 2008).
Non-financial factors, for example, tastes and
inclinations can be imperative in numerous social and
political situations. In this manner, the makers of housing
have a proceeding with issue of adjusting supply against
request, for if the last falls in respect to the previous, at that
point cost is probably going to drop, and the degree of drop
would mirror the flexibility of interest for housing. The
circumstance in Nigeria has been ineffective housing
ownership by low-income earners because of the falling per
capita salary and high joblessness level of the subjects
(Aluko, 2008). The house that an individual lives in is the
image of their status; a measure of their accomplishment
and social acknowledgment; the foundation of an agreeable
domain and solid living. Effective housing ownership can
likewise be utilized as the indicator to quantify the
abundance of houses in a country (Halme, Anttonen,
Hrauda & Kortman, 2006).
Housing finance is a broad subject, with different
interpretations across major lands, districts, and nations,
particularly in terms of the regions it covers (Scott, 2013).
For example, what is understood in a developed nation by
the word "housing finance" may be entirely different from
what is understood in a developing nation by the term
(Dixon and Adams, 2008). The reason for a housing
finance framework is to give the assets which homepurchasers need to buy their homes (Drury, 2009). This is a
basic target, and the quantity of manners by which it can be
accomplished is constrained (Zhu, 2006).
Nevertheless, in various nations, extremely convoluted
housing finance frameworks have been produced to a great
extent because of government activity. Nonetheless, the
fundamental element of any framework, that is, the ability
to channel the funds of investors to those purchasing their
homes, must remain (Lockton et al., 2008). Blaser and
Zabel (2014) contrasting various nations gathered close by
improvement strata demonstrates that more grounded
legitimate rights for the two borrowers and loan specialists,
macroeconomic conditions and more profound credit data
framework are solid factors that can help in developing the
home loan showcase in any nation. The more the data
accessible and the simpler it is to uphold insurance rights
(capacity to have), the greater the market has a tendency to
be in all nations (Warnock and Warnock, 2008).
The impact of mortgage finance can be important in
poverty reduction, growth and general economic
development of the country especially during construction.
The term “mortgage” has been in existence since the 17th
Century. It is a loan often associated with real estate.
Indeed, the history of the word has been traced back to the
legal interpretation by the old French to mean “dead”
(mort), “contract” or “pledge” (gage). Mortgages, like other
loans, have a fixed term to maturity, a date by which the
loan must be fully repaid (Alagbe, 2013). Consequently, it
was seen as the probability that the mortgagor will repay
his debt but in the event of a default, the pledged property
(in those days, land) was taken over or seized from him and
thus considered “dead” to him (mortgagor). If the incurred
debt (loan) was repaid, then the land pledged was dead to
the mortgagee (Kama et al., 2013).
2.2 Low-income earners
According to Opoko and Oluwatayo (2016) low-income
earners are all employees and self-employed people whose
annual income is N100,000:00 or less (i.e. the equivalent of
salary grade level 01-06 within the civil service). Around
57 % of the Nigerian population live below the poverty
line, which is set at US$1 per day on average (Wahab,
2006). According to Adedeji and Olotuah (2012), most
employees in the public and private sectors, as well as
many self-employed Nigerians, earn significantly less than
the national minimum wage and according to (Gambo,
Kunya, Ishiyaku, Ashen & Dzasu, 2021) particularly
primary school teachers. By extension, this means that
approximately 70 % of Nigerians form the nucleus of the
nation’s economy.
Low-income earners can be divided into two categories,
namely, the low-income earners who have no profitable
business and the low-income earners who are employed.
The low-income earner is therefore, a relative term and to
identify the low-income earners, it is necessary to consider
the cognisance of the location, and cost of living,
employment status of individuals, and their expenditure
characteristics within a free market economy. The lowincome earners are junior civil service workers such as the
Primary school teachers, traders and artisans. These
categories of people are found in most Nigerian cities (Onu
& Onu, 2012).
3.1 Finance Context
It is no longer unusual to discover that some Nigerians,
particularly those from low-income families living in urban
areas, are homeless. The reason is that the cost of building
or renting an accommodation is simply beyond the reach of
an average Nigerians. As a result, the Nigerian housing
sector faces two challenges: affordability and accessibility.
Several housing construction and delivery systems are
primarily aimed at the middle- and upper-income segments
of the population, who can either pay cash or obtain
housing finance from banks (Atamewan et al., 2017;
Gambo et al., 2021).
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high rent can be attributed to the decrease in housing stock.
Housing is an essential component of every nation's social
and economic fabric.
3.1.1 Finance accessibility
The relevance of this viewpoint to housing ownership
accessibility is that it ensures that housing provision is not
focused on some "selected" segments of society, but that all
members of the community have an equal opportunity to
choose their own accommodation based on their means or
affordability level (Okewole & Aribigbola, 2006). Social
equity is concerned with the social view of housing and
refers to a situation in which all citizens have equal access
to housing regardless of their socioeconomic background or
social status (Opoko & Oluwatayo, 2016; Gambo et al.,
2021).
3.1.2 Finance affordability
According to Mulliner, Malys, and Maliene (2016),
housing affordability has become a common way of
summarizing the nature of the housing difficulty in many
nations in recent years. This is in contrast to previous
decades' definitions of the'slum problem,' 'low-income
housing problem,' 'housing shortage,' or 'housing need.' In
most definitions of the term, a household has a housing
affordability problem if it pays more than a certain
percentage of its income to obtain adequate and appropriate
housing.
According to Gan and Hill (2009), Gambo et al., (2021)
a household's ability to purchase a home can be viewed in
at least three different ways. We distinguish between
purchase affordability, repayment affordability, and income
affordability. Purchase affordability considers whether a
family can borrow enough money to buy a house. The
burden imposed on a household by mortgage repayment is
considered in repayment affordability. The ratio of house
prices to income is used to calculate income affordability.
Despite the fact that there is an excess demand for housing
in Nigeria, either for ownership or for rent, their purchasing
power is limited by their respective income. Although most
low-income earners in Nigeria, particularly primary school
teachers, are unable to purchase houses from public or
private developers, public developers do provide these
houses in the form of mortgages. According to Ademiluyi
and Raji (2008), private developers contribute a significant
portion of the country's housing stock. Oni-Jimoh,
Liyanage, Oyebanji and Gerges (2018) also observed that
policy makers are not really aware of the magnitude of
housing problems for low- income earners when looking at
increase in house rent and rising cost of building materials.
But Udoka and Kpataene (2017) noted that the increasing
4.0 METHODOLOGY
The study involved the use of questionnaires to collect
information from a sample of (357) Primary school
teachers of Bauchi Local Government Education Authority
which have about 5,474 teachers in 2019. A five (5) point
Likert scale was used for the variable items to ease the
means of assessing the responses (Kothari, 2004). Going by
the performance descriptors in Braunsberger and Gates
(2009) the descriptors used for Accessibility, were very
likely rated 5, likely rated 4, uncertain rated 3, Unlikely
rated 2 and very unlikely rated 1. Those used for
Affordability were very high rated 5, high rated 4,
uncertain rated 3, low rated 2 and very low rated 1. Bauchi
Local Government was chosen because it has the most
primary school teachers (Levels 1-6) in the study area,
accounting for approximately 29.1% of the total population
of primary school teachers in the State, which is 18,755
according to EMIS SUBEB in 2017 (Gambo et al., 2021).
Primary school teachers were chosen because their salaries
are the lowest in Nigeria, according to FixusJobs.com
(2017), and they are at the very bottom of the salary scale
for teachers and the low-income group. The average
monthly salary for Nigerian primary school teachers is
N15,000 ($41.72). Mean ranking were carried out using
SPSS 23 software to show the level of institutional context
to low-income earners in Bauchi Local Government
Education Authority.
The descriptors used for mean ranking (5-point Likert
scale) as in Braunsberger and Gates (2009) are: ranges
from Less than 1.00 (Very poor); 1.00 – 1.99 (Poor); 2.00 –
2.99 (Neither good nor poor); 3.00 – 3.99 (Very good) and
Above 4.00 (Excellent) Reliability test was carried out to
measure reliability of constructs as suggested by Pallant
(2011). All of the constructs in Table 1 had a Cronbach's
Alpha of more than 0.7, according to the results (Gambo et
al., 2021).
Table 1. Reliability of field results
Contexts
Constructs
Cronbach's Alpha
No. of Items
Finance Context Accessibility
.780
14
Affordability
.813
15
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5.0 RESULTS AND DISCUSSION
5.1 Demography
Respondent demographic characteristics include gender,
age, level of education, years in service, length of service,
and monthly income. The frequency and percentage
analysis was performed, and the results are shown in Table
2. According to the results shown in Table 2, the majority
of respondents (62.7 %) were male, while their female
counterparts made up only 37.3 % of the sample. This
suggests that male respondents predominated in the
teaching profession in the study area.
The table also shows that the dominant age group was 35
years and below as noted from 50.9%, only 3.3% was 66
years and above of age. According to the information
gathered from the respondents regarding their level of
education revealed that 52% of them held NCE/National
diploma as compared to 28.9% who held Bachelor’s
degree/HND and 8% who held Master’s degree holders.
Majority of the respondents have been in the teaching
profession for 10 years and below represented by 52.3% as
compared to 11.2% who have been in the profession for
26years or more. In addition, 49.6 % of respondents earn
more than N40,000 per month, compared to 3.0 % who
earn less than N11,000 in the study area (Gambo et al.,
2021).
Table 2. Result of the demography
Variables
Gender
Options
Male
Female
Age
Under 26 years
Between 26 – 35 years
Between 36 – 45 years
Between 46 - 55 years
Between 56 - 65 years
66 years and above
Level of education
Primary School Living Certificate
Secondary School/Cert.
National Diploma/NCE
Bachelor’s degree/HND
Master’s Degree and above
Year of service
Under 6 years
Between 6 – 10 years
Between 11 – 15 years
Between 16 – 20 years
Between 21 – 25 years
26 years and above
Monthly income
Under N11, 000
Between N11,000 - N20,000
Between N21, 000 - N30,000
Between N31, 000 - N40,000
Over N40,000
Total
Frequency
230
137
367
82
105
72
44
52
12
367
11
28
191
106
31
367
106
86
51
39
44
41
367
11
23
89
62
182
367
Percent
62.7
37.3
100.0
22.3
28.6
19.6
12.0
14.2
3.3
100.0
3.0
7.6
52.0
28.9
8.4
100.0
28.9
23.4
13.9
10.6
12.0
11.2
100.0
3.0
6.3
24.3
16.9
49.6
100.0
5.2 Level of Housing Finance Accessibility to Low- Income Earners in Bauchi
Table 3 contains an analysis of the accessibility of finance
to low-income earners in the study area. The ranking mean
and standard deviation for each item were displayed in the
results. Based on their perceptions in the study area, a
mean ranking of the accessibility of finance to low-income
earners was conducted. It was observed that challenges in
accessing housing finance with the mean 2.88 was ranked
1st as the most crucial among the accessibility, followed by
‘qualify for a loan’ is very difficult to attain with the mean
value of 2.83 (ranked 2nd). Next was ‘collateral (like
property) that can be used to collect loan’ with the mean
value of 2.82, ranked 3rd. while the 4th ranking was
possibility of succeeding in applying for loan with mean
value of 2.82. The least performance identified was the
‘location of where you like your house to be’ with 2.52 as
the mean value and ranked 12th, and followed by ‘years of
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service’ with the lowest mean value of 2.42 (ranked 13th).
From the analysis result, it shows that access to finance is
‘neither good nor bad’ which is between the ranges of 2.00
- 2.99 based on the ranking scale.
Table 3. Level of housing finance accessibility to low-income earners in Bauchi
Variables
Challenges in accessing housing finance
Qualify for a loan is very difficult to attain
Collateral (like property) that can used to collect loan
Possibility of succeeding in applying for loan
Access to loan that can pay for a house at once
Cash deposit like part-payment needed
Flexibility in the housing loan terms
Repayment ability based on your income level
Down payment requirement
Processing of loan applications with financial institutions
Value of property needed
Beneficiary's preferred location for house,
Years of service
Mean
2.88
2.83
2.82
2.82
2.81
2.79
2.77
2.75
2.71
2.71
2.70
2.52
2.42
Std. Deviation
1.17861
1.20658
1.20505
1.17773
1.21777
1.26002
1.21553
1.21347
1.28139
1.25646
1.18163
1.22326
1.26665
Ranking
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th
12th
13th
5.3 Level of Housing Finance Affordability to Low-Income Earners in Bauchi
The analysis result for affordability of finance was
presented in Table 4, with the ranking mean and standard
deviation for each item. In Table 4, a mean ranking was
conducted on the affordability of finance to low-income
earners based on their perception in the study area. It was
observed that availability of collateral for bank security
with the mean 3.07 was ranked 1st as the most crucial
among the affordability, followed by affordability of
monthly repayments with mean value of 2.97 which was
ranked 2nd. Next to it was repayment period of the housing
loan with mean value of 2.90, ranked 3rd. while the 4th
ranking was willingness of renting to buying a house in
Bauchi with mean value of 2.81 followed by average
monthly income expended on housing units with mean
value of 2.50 which is ranked 13th and cost of houses in
Bauchi with lowest ranking of 2.48 mean value and ranked
14th. From the analysis result, it shows that affordability of
finance is “neither good nor bad” which is between the
ranges of 2.00 – 2.99 based on the ranking scale.
Table 4. Level of housing finance affordability to low-income earners in Bauchi
Variables
Availability of Collateral for bank security
Affordability of monthly repayments
Repayment period of the housing loan
Willingness of renting to buying a house in Bauchi
Service charges level of Housing finance
Risk level of borrowing
Level of VAT on materials used to construct houses
Interest rates charged on housing loans
Level of inability to afford housing prices
Influence of interest rate in ability to afford a house?
Houses too expensive to afford by low-income earners
Price level of houses
Average monthly income expended on housing units
Cost of houses in Bauchi
Mean
3.07
2.97
2.90
2.81
2.74
2.73
2.70
2.68
2.67
2.65
2.54
2.53
2.50
2.48
Std. Deviation
1.12232
1.16146
1.20192
1.16091
1.28563
1.23064
1.14404
1.15776
1.18323
1.19842
1.20243
1.14685
1.41783
1.13993
Ranking
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th
12th
13th
14th
5.4 Discussion
The research findings show that a critical problem for the
primary school teachers in Bauchi Local Government is
challenges in accessing housing finance which poses a lot
of difficulties, and this discourages them from
approaching the housing finance institutions for obtaining
housing loan. This study showed that the respondents
could not meet the requirements for accessing home loan
because they were not qualified. According to the
findings the inability of the respondents to provide
collateral created a barrier to housing ownership in the
study area. The study also revealed that majority of the
Primary school teachers could not meet up with the
requirements for succeeding in applying for home loan
which is a hindrance to owning a house. In the study, the
beneficiarys’ desire for the location of his house was also
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an impediment to obtaining housing finance.According to
the findings of the study, years of service is not a
significant factor in obtaining housing finance because the
majority of respondents have more than 15 years in
service, giving them the leverage to pay for a long period
of time. (Gambo, et al., 2021).
The study further revealed that the respondents could
not afford monthly repayment considering their monthly
salaries which is another roadblock to obtaining effective
housing finance in the study area.In the study it shows
that the repayment period was too short for the
respondents to afford housing finance. The study found
that respondents are more willing to rent than to buy a
house because they cannot afford the housing finance
loan. The influence of unemployment rate on affordability
was never an impediment in the study because they were
all primary school teachers, which means they were all
earning a living. The cost of houses was also a factor in
the study that affected respondents' affordability to
housing finance (Gambo et al., 2021).
6.0 Conclusion
According to the study’s findings, challenges in accessing
housing finance, qualifying for a loan, collateral that can
be used to collect loan and possibility of being successful
in applying for a loan are the impediments to accessibility
to finance by the low-income earners, while the least
accessibility of finance are beneficiary's preferred
location for his house, years of service and total access to
finance. The study also indicated that collateral for bank
security, affordability of monthly repayments, repayment
period of the housing loan and willingness of renting than
buying a house are the major constraints of the
affordability of finance to low-income earners while the
influence of unemployment rate is the least affordability
of finance.
The study concludes that low-income earners face
accessibility and affordability challenges to housing
finance loans in Bauchi, making home ownership out of
reach for them. However, accessibility and affordability
will improve the chances of low-income earners,
particularly primary school teachers in Bauchi Local
Government, of realizing their dreams of long-term
housing ownership. As a result, financial institutions
should make housing finance loans available and
affordable to low-income earners.
Acknowledgement
The authors acknowledge the assistance of The Abubakar
Tafawa Balewa University Bauchi, Nigeria during the
period of this research.
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