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HOW MORTGAGES WORK IN NIGERIA by Dennis Isong

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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.

  1. 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.
  2. 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.
  3. 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
  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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

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Sallah: President Tinubu’s felicitation message to Muslims on Eid-el-Kabir (Full Text)

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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.

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JUST IN: “Nobody was abducted on Abuja-Kaduna road”, Police deny abduction of 200 persons

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The report of about 200 travellers who were said to have been kidnapped along the Abuja-Kaduna highway has been denied by the Kaduna State Police Command.

The Police Command dismissed the Kidnapping Claims issuing a statement refuting reports of a mass kidnapping along the Abuja-Kaduna highway.

According to the Command’s spokesman, DSP Mansir Hassan, the reports circulating on social media, which claim that between 150 and 200 individuals were abducted, are false and misleading.

The statement was released on Thursday in Kaduna.

The Command said the report was entirely fabricated and without any basis.

The statement reads: “To set the record straight, there has been no recorded incident of kidnapping along the Abuja-Kaduna Highway in the past two years.

The area remains under constant surveillance and is regularly patrolled on a 24hrs basis by the Police, Military, Dss and other security forces under tight security to ensure the safety of all commuters.

“The Commissioner of Police strongly warns individuals and media outlets against the dissemination of such falsehoods. These misleading reports are capable of inciting unnecessary panic and disrupting public order.

“Furthermore, the Command is taking this matter seriously. Online Media Channels or individuals found responsible for originating or sharing such fabricated information without sources or basis will be invited for questioning, thoroughly investigated, and may face prosecution in accordance with the law.

“The State government in collaboration with the security forces and agencies in the state have been working assiduously to ensure safety and security of all persons and properties.

“The Kaduna State Police Command remains committed to safeguarding the lives and property of all residents and urges the public to rely only on verified and official sources of information,” the statement said.

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Anambra Govt Debunks Video of Soludo’s Reelection Visit to Native Doctor

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The Anambra State Government has debunked the misinformation, malicious and deliberately fabricated online publication and social media comments in the video of the recently arrested Native doctor in the state.

In a press statement signed by Christian Aburime, the state Press Secretary to the Governor on June 4, 2025, the State Government debunked the allegations that the Governor of Anambra State, Professor Chukwuma Charles Soludo, CFR, consulted a native doctor regarding his reelection prospects, stressing that the information is totally false.

The statement reads: The attention of Anambra State Government has been drawn to a malicious and deliberately fabricated online publication and social media comments making spurious claims that the Governor of Anambra State, Professor Chukwuma Charles Soludo, CFR, consulted a native doctor regarding his reelection prospects.

The State Government hereby debunks the allegations as totally false. For the interest of the general public, the video clip being maliciously circulated and misrepresented, as evidence of native doctor consultation, was taken during a recent official government meeting with Anambra-based content creators.

The session, facilitated by the Special Senior Assistant to the Governor on New Media, Mazi Ejimofor Opara, was organised to strengthen the partnership between the State Government and the creative industry as part of Governor Soludo’s commitment in encouraging and supporting Anambra’s creative economy.

During the interactive session, content creators were encouraged to showcase their talents, ask questions, and share their concerns about the creative industry in the state.

As part of the presentations, one of the content creators performed a native doctor skit, a common comic genre in Nigerian entertainment, to demonstrate their creative abilities to the Governor and other officials present.

This was purely an entertainment performance by a content creator, not a consultation session. The State Government thus found it deeply disappointing that critics and political opponents would stoop so low as to deliberately fabricate malicious narratives from an innocent entertainment performance and spread misinformation to mislead the public.

Rather than engage in frivolous consultations, Governor Soludo has consistently demonstrated his commitment to developing Anambra’s creative economy through investment plans as part of the state’s economic diversification strategy.

The recently commissioned SOLUTION FUN CITY project is part of such investment plans.

The State Government also clarified that Governor Soludo does not need consultations with any native doctor to win reelection, as he relies solely on the support of Ndi Anambra based on his impressive performance and focus on delivering the SOLUTION AGENDA by transforming Anambra State into a livable and prosperous homeland.

Therefore, the Anambra State Government calls on Ndi Anambra, media channels and social media users to disregard the misinformation concerning the circulated video clip.

The public is also urged to always verify information before sharing or amplifying content and reject malicious stories sponsored to mislead the public.

As always, Governor Soludo remains committed to the development of Anambra State and will not be deterred by the antics of desperate political opponents who have chosen the path of falsehood over constructive engagement.

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