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Buying a House in Nigeria? Here’s How to Get a Mortgage Without Being Rich
Owning a home in Nigeria used to feel like something only “big men” could afford. In cities like Lagos, Abuja, and Port Harcourt, rent keeps climbing, and buying property sounds like a luxury reserved for politicians, CEOs, and tech bros.
But here’s some real news: you don’t need to be rich to buy a house in Nigeria. You just need the right information and a working understanding of how to get a mortgage.
If you're a salary earner, business owner, or part of a cooperative, you can actually access a home loan and spread your payments over several years. In this guide, you’ll learn everything about how to qualify for a mortgage in Nigeria, where to get it, and how to increase your chances of approval.
What is a Mortgage and How Does It Work in Nigeria?
A mortgage is a type of long-term loan used to buy property. In Nigeria, it works like this: a mortgage bank or financial institution gives you money to buy a house, and you repay it monthly over a period, usually 10 to 30 years.
The house you're buying serves as collateral. If you default on payments, the lender can take back the property.
There are different mortgage options in Nigeria depending on your income, the property you want to buy, and the financial institution you're working with. Some offer lower interest rates, while others give you more flexible payment terms.
How Do You Qualify for a Mortgage in Nigeria?
Yes, but there are some conditions. Every lender has specific requirements for people looking to get a home loan in Nigeria, but here are the basics you’ll need:
Steady income (as a salary earner or business owner)
At least 6 months’ bank statements
Payslips or business records
Valid ID card (NIN, international passport, or driver’s licence)
Utility bill or proof of address
Equity contribution – usually 20–30% of the house price
Clean credit history or debt check
If you’re a government worker or civil servant, you may already qualify for a National Housing Fund (NHF) loan from the Federal Mortgage Bank of Nigeria.
Best Mortgage Options in Nigeria (2025)
Here are some of the most trusted mortgage providers in Nigeria that currently offer affordable home loans:
1. Federal Mortgage Bank of Nigeria (NHF Loan)
This is the most affordable and widely accessible option for many Nigerians.
Loan limit: ₦50 million
Interest rate: 6% per annum
Tenure: Up to 30 years
Eligibility: You must contribute to the National Housing Fund (NHF) for at least six months, among other things.
Perfect for: Low to mid-income earners, especially civil servants and public workers.
2. Abbey Mortgage Bank
Abbey is one of Nigeria’s oldest and most reliable mortgage banks.
Offers rent-to-own schemes, salary-based home loans, and developer-backed mortgages.
Repayment plans go up to 20 years, depending on your income.
Abbey Mortgage Bank is perfect for professionals and young families who want flexible repayment terms.
3. Infinity Trust Mortgage Bank
Infinity Trust Mortgage Bank is known for working with property developers to help buyers access homes through off-plan projects.
Offers home construction loans, home purchase loans, and mortgage refinancing.
Usually requires a 20–30% down payment.
Perfect for: First-time buyers and people buying homes in developing estates.
4. Commercial Banks (Access, UBA, Stanbic IBTC)
Some commercial banks also offer mortgage products in Nigeria.
Can finance homes worth ₦20–₦100 million.
Usually require higher income, equity contribution, and strict credit checks.
Interest rates range from 15% to 23% annually.
Perfect for: High-income earners or people looking to buy property in prime locations.
READ ALSO: How to Stop Losing Money to Bank Charges in Nigeria
How to Apply for a Mortgage in Nigeria: Step-by-Step
Here’s a breakdown of how to apply for a mortgage in Nigeria:
1. Choose the House You Want
Make sure the property is eligible for mortgage financing. Some lenders prefer houses from specific developers or in approved locations.
2. Pick a Mortgage Provider
Research different lenders, compare their interest rates, loan tenures, and eligibility criteria.
3. Submit Your Documents
This usually includes:
Bank statements
Payslips or business records
ID and proof of address
Property documents from the seller
4. Pay Your Equity Contribution
This is your own money toward the home. Most banks in Nigeria require 20–30% upfront.
5. Loan Processing and Property Valuation
The bank will evaluate your application and value the house to ensure it's worth the price you're paying.
6. Approval, Disbursement, and Repayment
Once approved, the loan is paid to the seller, and you begin monthly mortgage repayment.
How Much Should You Be Earning to Get a Mortgage in Nigeria?
Your monthly repayment usually shouldn’t exceed 33% of your monthly income.
Here’s a simple example:
If you earn ₦300,000 monthly, your maximum mortgage repayment should be around ₦100,000/month.
This means you could qualify for a mortgage loan of ₦6–₦10 million, depending on interest rate and repayment term.
So yes, mortgage loans for Nigerian salary earners are possible if you meet the income and document requirements.
How Do Interest Rates Work for Mortgages in Nigeria?
Mortgage interest rates in Nigeria vary widely:
NHF Loan (FMBN): 6% fixed annual interest
Commercial banks: 15%–23% per annum
Mortgage banks: 12%–20% depending on the provider
Some banks offer fixed interest rates, while others offer floating rates that change over time. Always ask questions before signing anything.
Pros and Cons of Getting a Mortgage in Nigeria
Pros:
You can own a house without saving the full amount.
Mortgage repayments can be cheaper than rent in the long run.
You get access to long-term property investment.
Cons:
High interest rates from some banks.
The approval process can take 4–12 weeks.
Missed payments may result in the loss of the property.
READ ALSO: These 5 Apps Help You Access Loans Easily and at Low Interest Rates
Buying a House in Nigeria Is Possible
With the right information, steady income, and some planning, you can own your own home in Nigeria. Mortgages are no longer just for the rich; they’re for people like you trying to build a stable future.
Start by checking if you qualify, opening a conversation with a mortgage bank, and beginning to save your equity contribution. You don’t have to wait until you “blow”; you just need to start.
