Authors : Hamza Usman, Mohammed Hamisu Garba and Isa Abdullahi
Abstract: Mortgage financing has been the most effective source of financing homeownership. However, 80-90% of homeownership in Nigeria is not through this important source. This study adopted a unique approach of understanding the bane of homeownership through mortgage financing using the Theory of Planned Behavior (TPB). A sample of 300 potential homeowners in Bauchi Metropolis, Nigeria was drawn to respond to the closed ended questionnaires distributed to them. The 235 questionnaires were considered valid for further analysis. Partial Least Square-Structural Equation Modeling (PLS-SEM) was used to analyse the data. It was found that the exogenous constructs of TPB (Attitude toward mortgage, subjective norms and perceived behavioral control) explained 66.9 (R2 = 0.669%) of the variance of intention of using mortgage in financing homeowership. It was found that subjective norm was the most significant factor that determines intention of using mortgage in financing homeownership. The study recommended that the policy makers should design mortgage policies in such a way as to reflect the diverse aspiration of the people. The mortgage institutions are also recommended to have diverse mortgage windows that accommodate all cultural and social diversities of people. This study contributed to both the body of knowledge in financing homeownership through mortgage and has implications to policy makers, mortgage institutions, investors and the general public.
Hamza Usman, Mohammed Hamisu Garba and Isa Abdullahi, 2017. Predicting Intention of Using Mortgage in Financing Homeownership in Nigeria: Application of Theory of Planned Behavior. The Social Sciences, 12: 509-516.