Determinants of intention of using mortgage in financing home ownership in Bauchi, Nigeria

Abstract

Purpose This paper aims to evaluate the bane of home ownership in Nigeria through mortgage financing by examining the determinants of intention of using mortgage in financing home ownership. Design/methodology/approach The paper adopted a survey quantitative research design. A total of 235 valid questionnaires randomly distributed were retrieved from 300 potential homeowners who were the sample of the research. Partial least squares-structural equation modeling was used for data analysis and hypotheses testing. Findings The findings revealed that religious perception on mortgage was the most significant determinant of intention of using mortgage in financing home-ownership. Subjective norms and perceived behavioral control also have significant effect on intention of using mortgage financing. However, attitude and familiarity/knowledge of mortgage were found not to have a significant effect on intention of using mortgage financing. The determinants cumulatively determined 77.6 per cent (R2 = 0.776) of the variance in intention of using mortgage in financing home ownership. Practical implications The research contributed to knowledge and has practical implications to policy makers, mortgage institutions, investors and the society. Originality/value The paper uniquely explores the bane of home-ownership through mortgage financing by examining potential home-owners’ intention of using mortgage financing. To authors’ knowledge, this is the first paper to evaluate intention of using mortgage financing, at least in Nigeria.

Nexus between risk sharing vs non-risk sharing financing and economic growth of Bangladesh

“…However, the insignificant "subjective norm-intention" path coefficient points out that the respondents did not consider normative pressures to be important in adopting IHF. This finding departs from what is usually a strong predictor of intention in other studies on IHF instrument selection (Amin, Abdul Rahman, and Abdul Razak, 2013;Amin, Rahman, and Ramayah, 2013;Amin et al, 2014a, b;Md Taib et al, 2008;Usman and Lizam, 2016). At this juncture, one can only speculate about this departure from previous literature, but as 824 MF 44,6 explained by Ajzen (1991), it might be that personal consideration in the form of the attitudinal factor has "overshadowed" the influence of perceived social pressure.…”

“…Previous studies have established that attitude can predict the behavioral intention to patronize Islamic financial services instrument (Abdul Amin, 2012;Amin, Abdul Rahman, and Abdul Razak, 2013;Amin et al, 2014a, b;Amin, Rahman, and Ramayah, 2013;Sharma et al, 2016). Although there are numerous studies on the behavioral intention to choose IHF instrument such as MM (Amin, Abdul Rahman, and Abdul Razak, 2013;Amin et al, 2014a, b;Md Taib et al, 2008;Usman and Lizam, 2016), it is interesting to note that most of them were carried out on ICB context, and none was done within the context of financial cooperatives. As argued by scholars such as Ebrahim (2009) and Mydin Meera and Abdul Razak (2005), the current MM practices in ICB reveal a marked departure from its Note: Path between intention and behavior will not be estimated…”

“…Ajzen (1991, p. 188) defined perceived behavioral control as "perceived ease or difficulty of performing the behavior and it is assumed to reflect past experience as well as anticipated impediments and obstacles." Within the domain of Islamic financial services selection studies, perceived behavioral control was determined to have a significant effect on the behavioral intention (Amin, Abdul Rahman, and Abdul Razak, 2013;Amin, Rahman, and Ramayah, 2013;Amin et al, 2014a, b;Usman and Lizam, 2016). However, in this model, the participants must join a financial cooperative for at least six months and save up enough money in the FC shares that eventually equal to the down payment required to buy their house.…”

“…Ajzen (1991, p. 188) defined subjective norm as the "perceived social pressure to perform or not to perform the behavior." In Islamic financial services selection studies, social pressure especially from family members, close friends, and influential figures has been found to be a significant predictor of behavioral intention (Abdul Amin, 2012Amin, , 2013Amin, Abdul Rahman, and Abdul Razak, 2013;Amin, Rahman, and Ramayah, 2013;Amin et al, 2014a, b;Md Taib et al, 2008;Md Husin et al, 2016;Usman and Lizam, 2016). Therefore, if those important to them expect them to participate in schemes that are permissible by shari'ah, their intention to participate in the CWFCMM Model would be very very likely high or vice versa.…”

“…Third, although the respondents identified two of the original items in the construct as perceived cost advantages of CWFCMM Model, "perceived behavioral control-intention" relationship was acknowledged as a key factor influencing the respondents' intention to participate in the CWFCMM Model. As TPB incorporates the volitional control factor, perceived behavioral control was determined to be a significant predictor of behavioral intention to purchase IHF instruments (Amin, Abdul Rahman, and Abdul Razak, 2013;Amin, Rahman, and Ramayah, 2013;Amin et al, 2014a, b;Usman and Lizam, 2016). As the CWFCMM Model is theoretical in nature and incorporates the third-sector economy institutions of waqf and financial cooperative, the respondents indicated that they are prepared to seek more information prior to becoming a participant in the model (Item 15, λ ¼ 0.63).…”