News
HOW MORTGAGES WORK IN NIGERIA by Dennis Isong

Potential borrowers assess their financial status, calculate affordability, and choose a suitable mortgage type.
Mortgages play a pivotal role in the real estate sector, allowing individuals and families to own homes without the need for substantial upfront payments.
In Nigeria, as in many countries, mortgages are a common means of financing homeownership.
This article aims to provide a comprehensive overview of how mortgages work in Nigeria, covering the key aspects, processes, and considerations.
- Types of Mortgages in Nigeria
In Nigeria, there are various types of mortgages available to suit different needs and financial situations. The most common types include:
a. Home Purchase Mortgage: This is the traditional form of mortgage used for buying a new home or property.
b. Home Equity Release Mortgage: This allows homeowners to access the equity in their property to meet other financial needs.
c. Construction Mortgage: Designed for those building their homes, this type of mortgage provides funds in stages during construction.
d. Refinancing Mortgage: Allows homeowners to replace an existing mortgage with a new one, often with better terms. - Mortgage Providers
Mortgages in Nigeria are typically provided by banks, mortgage banks, and other financial institutions. Some of the well-known mortgage banks in Nigeria include the Federal Mortgage Bank of Nigeria (FMBN), which focuses on affordable housing, and commercial banks like Zenith Bank, First Bank, and GTBank. - Eligibility Criteria
To qualify for a mortgage in Nigeria, individuals must meet certain eligibility criteria, which may include:
- Proof of regular income
- Good credit history
- Down payment capability
- Legal age (usually 18 years or older)
- Nigerian citizenship or legal residency
- The Mortgage Application Process
The mortgage application process in Nigeria involves several steps:
a. Prequalification: Potential borrowers assess their financial status, calculate affordability, and choose a suitable mortgage type.
b. Documentation: Applicants provide necessary documents such as proof of income, identification, and property details.
c. Property Valuation: The lender evaluates the property’s value to determine the loan amount.
d. Credit Assessment: Lenders assess the borrower’s creditworthiness by reviewing credit reports and history.
e. Approval and Disbursement: Upon approval, the mortgage is disbursed, and the borrower takes ownership of the property. - Mortgage Terms and Conditions
Mortgages in Nigeria typically have terms ranging from 10 to 25 years. Interest rates can be fixed or variable, and the repayment structure can be monthly, quarterly, or annually. - Mortgage Insurance
Mortgage insurance is often required, especially for mortgages with smaller down payments. This insurance protects the lender in case the borrower defaults on the loan. - Repayment and Default
Borrowers must make regular payments to avoid default. Defaulting on a mortgage can result in the lender repossessing the property, so it’s essential to honor the repayment schedule. - Government Initiatives
The Nigerian government has introduced several initiatives to promote affordable housing and increase access to mortgages. The FMBN, for instance, offers the National Housing Fund (NHF) scheme, which provides affordable mortgage loans to contributors. - Tax Implications
It’s important for prospective homeowners in Nigeria to be aware of the tax implications associated with mortgages. Mortgage interest paid on a primary residence is often eligible for tax deductions, which can help reduce the overall cost of homeownership. Tax laws and regulations may vary, so consulting with a tax professional is advisable. - Benefits of Mortgages in Nigeria
Owning a home through a mortgage in Nigeria offers several advantages:
a. Asset Appreciation: Real estate in Nigeria generally appreciates over time, potentially increasing the value of your investment.
b. Forced Savings: Paying a mortgage every month encourages disciplined saving, as a portion of each payment goes toward building home equity.
c. Housing Security: Homeownership provides stability and security for you and your family.
d. Investment Opportunity: Owning property can open doors to real estate investment and rental income.
e. Access to Government Schemes: Many government initiatives and incentives are designed to make homeownership more accessible, particularly for low and middle-income earners. - Challenges and Risks
While mortgages offer numerous benefits, they also come with potential challenges and risks:
a. Interest Rate Fluctuations: Variable interest rates can lead to fluctuations in monthly payments, impacting borrowers’ budgets.
b. Economic Factors: Economic downturns can affect borrowers’ ability to make mortgage payments, leading to defaults.
c. Property Market Volatility: Real estate markets can be unpredictable, potentially affecting property values.
d. Legal and Documentation Complexities: Navigating the legal and documentation requirements of mortgages can be complex and time-consuming.
e. Default Consequences: Defaulting on a mortgage can result in foreclosure and the loss of the property. - Expert Advice
Before embarking on the mortgage application process in Nigeria, it’s advisable to seek expert advice. Consult with financial advisors, real estate professionals, and legal experts to ensure you make informed decisions that align with your financial goals and circumstances.
▪︎Dennis Isong is a TOP REALTOR IN LAGOS.He Helps Nigerians in Diaspora to Own Property In Lagos Nigeria STRESS-FREE. For Questions WhatsApp/Call 2348164741041
News
Governor Soludo Congratulates Muslim community in Anambra State and across Nigeria

Anambra State Governor, Professor Chukwuma Charles Soludo has congratulated the Muslim community in Anambra State and across Nigeria on the celebration of this year’s Eid Kabir (Eid al-Adha).
Governor Soludo expressed his goodwill while recognising the profound significance of the holy festival for Muslims, which commemorates Prophet Ibrahim’s devout faith and obedience to Allah’s command.
The Governor said the celebration reminds everyone of the virtues of sacrifice, devotion, and submission to divine will that transcend religious boundaries and speak to our common humanity.
He acknowledges the valuable contributions of the Muslim brothers and sisters to the socio-economic development of Anambra State, noting that the peaceful co-existence of people of different faiths in the state remains a source of pride and a tribute to the shared values of tolerance, respect, and unity.
Soludo said: “As we celebrate this festival of sacrifice and feasting, the Governor calls upon all Nigerians to reflect on the lessons of Eid Kabir, particularly the importance of selflessness, compassion for the less privileged, and devotion to the common good, values that align perfectly with our administration’s commitment to building a prosperous, inclusive, and harmonious society”.
The Governor wishes all Muslim faithful in Anambra State and Nigeria a joyous and blessed Eid Kabir celebration, filled with peace, prosperity, spiritual fulfillment and renewed commitment to a better society for all.
News
JUST IN: Former Chief Justice, Mohammed Lawal Uwais dies at 89

Nigeria’s former Chief Justice, Justice Mohammed Lawal Uwais has died at the age of 89.
Recall that Uwais was born on June 12, 1936, in Zaria, Kaduna State, and served as Chief Justice of Nigeria from 1995 to 2006.
He was widely respected for his steadfast commitment to judicial reform and the protection of judicial independence throughout his tenure.
The family confirmed his passing in a brief statement today, saying: “Inna Lillahi Wa Inna Ilaihir Rajiun. With hearts heavy yet full of gratitude to Allah Subhanahu Wa Ta’ala, we announce the passing of our beloved father, Justice Mohammed Lawal Uwais, former Chief Justice of the Federation.
”According to the statement, funeral rites were scheduled to take place immediately after Juma’at prayers today at the National Mosque in Abuja.
News
Sallah: President Tinubu’s felicitation message to Muslims on Eid-el-Kabir (Full Text)

President Bola Tinubu has on Thursday called on Nigerians to be patient with his administration’s reforms, assuring that “the toughest days are behind us.”
Tinubu gave the assurance in his message to mark the 2025 Eid-el-Kabir celebration.He insisted that his economic reforms had already started yielding positive results even though the journey had not been easy.
Read full message below:
“I extend my heartfelt congratulations to Nigerian Muslims and the global Muslim Ummah as we celebrate this year’s Eid-el-Kabir.
Eid-el-Kabir represents the high point of the sacred first ten days of Dhul Hijjah, a period filled with opportunities for acts of worship and good deeds. It is a time for gratitude to Almighty Allah for His countless mercies upon us as individuals and a nation.
While this festival is marked with joy and celebration, its true significance lies much deeper: Eid calls us to reflect on its core values of sacrifice, devotion, and selflessness.
To truly honour Eid, we must embody these virtues, just as Prophet Ibrahim (AS) exemplified complete submission to Allah’s will and as our Prophet Muhammad (PBUH) has taught us. Let this sacred occasion renew our commitment to these ideals.
Eid-el-Kabir also reminds us of our responsibilities beyond faith: to show resilience, tolerance, compassion, and dedication to the progress of our beloved country.
I reaffirm my commitment to these values and express my deep appreciation for the faith, patience, and perseverance Nigerians show as we implement bold reforms.
Together, we have weathered challenging times and are approaching a brighter horizon.
Though the journey has not been easy, and some doubted our direction, the resilience of public and private sector leaders, along with the steadfast support of most Nigerians, is yielding results.
I assure you that the toughest days are behind us. We are entering a new era of renewed hope and prosperity that we promised two years ago.
We may not yet be where we aspire to be, but I urge all Nigerians not to lose hope. Let us hold on to our faith and persevere. Our reforms are gaining traction, with key economic indicators now moving in a positive direction.
Soon, all will feel the benefits.
The ultimate objective of these reforms is not just to improve statistics but to transform lives and set Nigeria firmly on the path to sustainable development.
There are no quick fixes, but we are committed to repairing the foundations of our economy once and for all.
Our administration will continue acting in the nation’s best interest, ensuring that the gains we are recording translate into improving people’s lives.
We crafted our Renewed Hope Agenda to bring prosperity to every Nigerian, and we remain steadfast in our pursuit of it.
As we celebrate today, remember that Eid-el-Kabir enjoins love, compassion, and generosity for all, regardless of faith or background. Let us care for one another’s well-being during this season and always.
In this instance, I recall recent sad developments in our country, particularly the Wednesday, May 28 heavy flooding, which submerged the market town of Mokwa, Niger State, causing deaths and destruction of properties and creating an untold humanitarian crisis.
Let us pray for the repose of the souls of those who lost their lives and fortitude for their relations. Let us join hands with the government to bring succour to the people of Mokwa.
Finally, as we observe this Eid, let us continue our prayers for our front-line officers, who risk their lives for our safety and security.
Let us pray for our leaders at all levels and our country. Let us pray for peace in our tumultuous world of troubles and uncertainties.
Let us dedicate this sacred celebration to seeking God’s guidance and blessings for our country.
May those who have more remember those in need, sharing kindness and support as true brothers and sisters. Let the virtues of perseverance, sacrifice, loyalty, faith, and shared humanity bind us closer.
May the joy and blessings of Eid-ul-Adha multiply in our lives and the life of our great nation.
May Almighty Allah accept our worship and devotion as acts of Ibadah, and may His blessings be with us always.
-
News3 days ago
President Tinubu confers CFR national honour on Bill Gates
-
Business3 days ago
USSD Charges: Telcos threaten to withdraw services over banks’ misinformation
-
News3 days ago
Nigeria should fence its borders for security, says defence chief
-
News3 days ago
NEMA intensify flood Warnings in 15 high-risk states
-
News3 days ago
Yahaya Becomes ICAN’s 61st President
-
Health3 days ago
Bill Gates ambitious to end malaria in Nigeria in the next 20 years
-
News1 day ago
JUST IN: “Nobody was abducted on Abuja-Kaduna road”, Police deny abduction of 200 persons
-
News3 days ago
Tinubu hosts Gov Adeleke, Davido at Lagos residence (Photos)