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
A fire outbreak has been reported at a popular Ibadan radio station, Fresh FM, at Felele area in Ibadan South-West local government area of the Oyo State capital on Friday.
The incident, which started a few hours ago, has disrupted other related activities at the station.
A staff member of the station, @Arugboboisi, confirmed the incident on Friday evening in a post on his X handle.
He appealed to the Fire Service to respond without delay and urged the public to help spread the word and notify the nearest fire station.
“Fresh FM is currently on fire! We urgently need the Fire Service to respond immediately. Please retweet, spread the word and alert the nearest station,” he posted.
In another post, he shared the fire raging with “What a night” as the caption.
It is unclear what caused the fire, whether it has been put out or the extent of the damage.
Felix Morka, the National Publicity Secretary
All Progressives Congress (APC) on Friday urged the Party faithful, supporters and all Nigerians to disregard the report labelling the party as a terrorist organisation by the Canadian Immigration Appeal Division [IAD), saying its false and misleading.
Morka, in a statement on Friday, stated categorically that the Canadian court did not declare APC as a terrorist organisation, contrary to highly erroneous media reports in circulation.
He clarified:
“As reported, the declaration was allegedly made in the case of Douglas Egharevba and the Minister of Public Safety and Emergency Preparedness, in which the Applicant (Douglas Egharevba) sought judicial review of a decision by ] which determined that the Applicant was inadmissible in Canada under its Immigration and Refugee Protection Act (IRPA).
In a decision in the matter dated June 17, 2025, Judge Phuong T.V. Ngo dismissed the application for judicial review on the ground that the Applicant was a member of the Peoples Democratic Party (PDP) and that the PDP was an organization engaged in acts of subversion under paragraph 34(1)(b.1) of the IRPA making him inadmissible in Canada.
In his analysis, the Judge stated, “As such, applying the reasonableness standard of review, I cannot find the IAD’s conclusion that the Elections in question constituted a democratic process or institution and that the PDP, its members and supporters engaged in subversive acts committed against the electoral process for the improper purpose of maintaining political power to be unreasonable.”
To be clear, the only reference to APC in the entire 16-paged decision was in the introductory “Background”, Paragraph 4, where the court referenced a “Background Declaration Form in which the Applicant stated that “he was a member of the People’s Democratic Party [PDP] of Nigeria from December 1999 until December 2007, and a member of All Progressives Congress [APC] party of Nigeria from December 2007 until May 2017.”
For the record, APC was not in existence as of 2007.
The Party was registered in 2013. The Applicant’s claim of membership of APC as of 2007 is evidently false, as he could not have been a member of APC, which didn’t exist then.
For the avoidance of doubt, we dare to state that the court never made any determination on the question of terrorism in its decision. In the Judge’s own words:
“Having found that the IAD’s analysis on subversion was reasonable, this is sufficient to dismiss the application for review. I will therefore refrain from analysing the IAD’s findings on terrorism.”
Clearly, reports that the APC was declared a terrorist organisation by the Canadian court in this matter are patently erroneous, if not mischievous.
The court did not make such a declaration, and could not have done so, as that would be an unjustifiable overreach and a major breach of fair hearing, among other due process rights, given that APC was not a party to the proceedings.
Such a decision would also have been of absolute irrelevance as being made without jurisdiction, and of no extraterritorial applicability or significance. “
News
Okonjo-Iweala Says Nigerian Economy now stable under Tinubu
“The reforms have been in the right direction. The next step is growth, and alongside that, building social safety nets so those feeling the pinch of reforms can get support.”
THE Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, declared that President Bola Tinubu and his team have worked hard to stabilize the economy.
“You cannot really improve an economy unless it’s stable,” said Okonjo-Iweala during a meeting today with President Tinubu at the Presidential Villa, Abuja.
“The reforms have been in the right direction. The next step is growth, and alongside that, building social safety nets so those feeling the pinch of reforms can get support,” she said.
She added that growth, job creation, and income expansion must go hand-in-hand with measures to cushion the impact of ongoing reforms on vulnerable Nigerians.
BREAKING: Fire guts Fresh FM office in Ibadan
APC Declares Canadian IAD Reports False
Okonjo-Iweala Says Nigerian Economy now stable under Tinubu
Tech Expert, Zuckerberg trains with UFC champions, Adesanya, Alexander
Organ Trafficking: Ekweremadu bags 10 years in UK prison
SAINT OBI: Between his marriage and his death
-
Crime2 days agoTragedy in Imo: Son Fatally Stabs Father Over Land Sale Dispute
-
News3 days agoBREAKING: Court discharges Comfort Emmason accused of unruly behaviour on Ibom Air flight
-
News3 days agoIbru University Names Prof Kila as New Pro-Chancellor
-
Sports2 days agoNigerian Football Star, Jay-Jay Okocha Turns 52 Today
-
International21 hours agoAPC Declares Canadian IAD Reports False
-
News3 days agoObasanjo’s Library Ready to Face EFCC in Court over Invasion
-
News15 hours ago
BREAKING: Fire guts Fresh FM office in Ibadan
-
News2 days agoOkonjo-Iweala Says Nigerian Economy now stable under Tinubu