Mortgage in Nigeria

How to Buy a Property through Mortgage in Nigeria

If are running a high-income business or you are working in an organization where you are paid between N150,000 and above, you might be qualified for a Property Loan / Mortgage in Nigeria. But because you do not know much about Property Financing, I have made this post for you, and I will show you how to tap into the repository of funds in the Nigerian Banking / Mortgage Industry. At the end of this post, you will know how to get started in your journey and quest for Home/Property Financing.


Counting on my years of experience in the Nigerian real estate industry, I have come to realise that many Nigerians want to access Mortgage facilities but they do not know how to go about it. Because of this, I will be guiding you through the process of getting a Mortgage in Nigeria in these order;

  • Eligibility Criteria for a Mortgage in Nigeria
  • General Documents Required for a Mortgage in Nigeria
  • Equity Contribution 
  • Factors affecting Mortgage Application in Nigeria
  • The National Housing Fund – Example
  • Mortgage Banks in Nigeria
  • Learning Review
  • Disclaimer

Eligibility Criteria for a Mortgage in Nigeria

If you have a regular business, and you are gainfully employed with earnings above N150,000 (One Hundred and Fifty Thousand Naira) only, be rest assured that you are qualified for a Mortgage. You are also required not to have any bad outstanding loans or a history of such.

Nigerian Mortgage Lenders would want to check and verify your;

  • Your monthly income
  • Your monthly expenditure
  • Your existing debt profile
  • The value of the property you want to be financed
  • Available statutory documents on the property to be purchased

General Documents Required for Property / Mortgage Financing in Nigeria

  • Mortgage/Property Financing application form
  • Copy of latest payslip
  • Original stamped 6 months Bank statement
  • Letter of awareness from employer
  • Copy of Registered Title Document for the Property to be Purchased
  • Copy of Approved building plan

Please Note: there may be some slight variations with some Mortgage Companies

Equity Contribution 

Having a smaller initial deposit means that the mortgage you seek will need to cover a much high percentage of the property’s value. As an example: If a house cost 50 million Naira and you have a deposit of 10 million Naira. The mortgage would have to cover the remaining 40 million Naira. We then have an LTV (loan to value) of 80%.

National Housing Fund

If you are interested in getting a Mortgage/Property Financing Facility in Nigeria, it is always better to save as much money as a deposit as possible, so that the actual Mortgage you need can be kept to a minimum.

Having an equity contribution at a fair percentage with your Mortgage Bankers will make your accessibility to mortgage Loans as easy as possible.

Factors affecting Mortgage / Property Financing Application in Nigeria

Lending money is all about risk and uncertainty, there are various factors which may make it difficult to obtain financing for a house. These include;

  • No prior experience in you holding a mortgage or managing other debts. In this case, the lender cannot predict how well you can keep up with your payments each month.
  • A smaller deposit is put aside for the initial mortgage deposit. This will likely limit the mortgage amount you can apply for.
  • No collateral for the loan you wish to obtain.

The National Housing Fund – Example

The National Housing Fund (NHF) is a Federal Government scheme, which entitles all Nigerians above the age of 21years in paid employment to a low interest, government-funded loan. 

Members of the scheme contribute 2.5% of their monthly salary to the fund through the Federal Mortgage Bank of Nigeria. The maximum amount obtainable under the NHF used to be N5 million but has been increased to N15 million. The borrowed capital is repayable over a maximum of 30 years at the rate of 6% interest.

Requirements for accessing an NHF Loan

  • Open a savings account with a registered Primary Mortgage Institution (PMI).
  • Contribute to the fund for at least six months prior.
  • Have satisfactory evidence of the regular flow of income to guarantee the loan.
  • Submit photocopies of valid property title documents (e.g. C of O).
  • Approved survey/site plans.
  • Approved building plans.
  • Valuation report prepared by a firm of registered estate surveyors and valuers.
  • Letter of consent to mortgage to your chosen PMI.
  • Apply on a prescribed mortgage loan application form.
  • Offer Letter/Acceptance and Allocation letter (In case of government projects).
  • In the case of a registered self-employed applicant, a copy of the Articles and Memorandum of Association and a copy of the Certificate of Incorporation as evidence of employment status must be submitted.

Mortgage / Property Financing Banks in Nigeria

This is a list of Mortgage/Property Financing Banks in Nigeria, it also includes links to their respective websites;

Learning Review

Always take advantage of Mortgage Facilities in Nigeria, use them to get the required capital /loans for your land/housing purchase and pay for your home on inconvenient terms.

As an aspiring homeowner, Mortgage Facility helps you make stress free payments for any property.

Learning recap; 


The contents of this article are for informational purposes only. Always do your research before you take any business advice.

Note: this is not a promotional article, rather did any company pay me to write about them.

You may be interested in;

How to Finance a Rental Property in Nigeria


Author Profile

Bolaji Afolabi
Bolaji Afolabi
I am Bolaji Afolabi, I am a Partner at Globalclique, we provide Real Estate Technologies, HR/Talent Acquisition/Outsourcing Support and E-Business Solutions. We are a multi–disciplinary Solution Provider.

Related Posts

Leave a Reply