Mortgage Guide: How to Get a Home Loan in Nigeria
By Mr. Tunde Ogunleye
Getting a mortgage in Nigeria can be challenging, but it is possible with the right preparation.
Types of Mortgages: - Federal Mortgage Bank of Nigeria (FMBN): Offers the National Housing Fund (NHF) loan to contributing workers, with interest rates as low as 6%. - Commercial Banks: Offer mortgage products with interest rates typically between 18% and 28%. - Primary Mortgage Institutions (PMIs): Specialised lenders that focus on housing finance.
Eligibility Requirements: - Must be a Nigerian citizen aged 21-60 - Must have been employed for at least 6 months (or have a registered business) - Must be a contributor to the NHF (for FMBN loans) - Must have a satisfactory credit history
Required Documents: - Completed mortgage application form - Valid ID and passport photographs - Employment letter and salary slips (or business registration documents) - Bank statements for the last 6-12 months - Tax clearance certificate - Property documents (COfO, survey plan, valuation report)
Tips for Approval: - Maintain a good credit score - Save for a substantial down payment (typically 20-30%) - Reduce existing debt - Provide accurate and complete documentation
The process can take 3-6 months, so start early and be patient.