How to Apply for a Mortgage in Nigeria: Full Process Explained

By Favorite Grace On Jul 5, 2025

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Details on How to Apply for a Mortgage in Nigeria can be found here on TJ News Nigeria.

Securing a home in Nigeria is a lifelong goal for many citizens. While some opt for outright land purchases and gradual construction, others prefer the convenience and structure of a mortgage. But how exactly does the Nigerian mortgage process work?

TJ News Nigeria reports that despite challenges in housing finance, more Nigerians are turning to mortgage institutions, banks, and government-backed schemes to make homeownership a reality.

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This guide outlines everything you need to know about how to apply for a mortgage in Nigeria, including eligibility criteria, documentation, loan options, and step-by-step procedures.

What Is a Mortgage?

A mortgage is a long-term loan secured by real estate, typically used to finance the purchase or construction of a home. In Nigeria, mortgages are offered by:

Primary Mortgage Institutions (PMIs)
Commercial Banks
Microfinance Banks (with housing licenses)
The Federal Mortgage Bank of Nigeria (FMBN)
Government schemes like the National Housing Fund (NHF)

How Mortgages Work in Nigeria

A typical Nigerian mortgage allows you to:

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Make a down payment (usually 20–30% of the property’s value)
Repay the balance in monthly installments over 5 to 30 years
Pay interest ranging from 6% (NHF) to 18–22% (commercial rates)

Your property title is held as collateral until the loan is fully repaid.

Step-by-Step: How to Apply for a Mortgage in Nigeria

Step 1: Assess Your Eligibility

Before applying, check if you meet common lender requirements:

Nigerian citizenship
Steady income source (salaried or self-employed)
Minimum age: 21 years
Maximum age: 60–65 years (depending on lender)
Good credit history (no default record on BVN)
Proof of National Housing Fund (NHF) contributions (for FMBN loans)

💡 FMBN/NHF contributors can access up to ₦15 million with single-digit interest rates.

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Step 2: Choose a Mortgage Provider

Your mortgage provider determines interest rates, repayment terms, and documentation required.

Common options:

Federal Mortgage Bank of Nigeria (FMBN)
Primary Mortgage Banks: Trustbond, Abbey Mortgage Bank, Platinum Mortgage, etc.
Commercial Banks: Stanbic IBTC, Access Bank, GTBank, etc.
Cooperative Housing Schemes
Real Estate Developers with Financing Options

Step 3: Gather Required Documents

Although exact requirements vary, most institutions will request:

Personal Documents:

Valid means of identification (NIN, International Passport, or Driver’s License)
BVN printout
Recent passport photographs
Utility bill (proof of address)

Financial Documents:

Six months’ payslips or bank statements
Employment letter or business registration (CAC certificate for business owners)
Tax Identification Number (TIN)
Statement of NHF contributions (for FMBN applicants)

Property Documents:

Offer letter or sales agreement from the seller/developer
Approved building plan
Property valuation report
Certificate of Occupancy (C of O) or Right of Occupancy

Pay Attention To: Top Mortgage Banks and Institutions in Nigeria (Updated List)

Step 4: Make Down Payment

Most Nigerian mortgages require:

20%–30% down payment for private/commercial lenders
10% equity contribution for NHF-backed loans

TJ News Nigeria gathered that some real estate developers offer flexible payment plans in partnership with mortgage banks.

Step 5: Loan Assessment and Approval

After you submit your documents:

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The lender will evaluate your creditworthiness
Conduct a property valuation
Calculate your Debt-to-Income (DTI) ratio

If approved, a formal offer letter is issued outlining:

Loan amount
Interest rate
Monthly repayment schedule
Tenure and prepayment terms

You must sign and return this letter to proceed.

Step 6: Legal Documentation and Property Perfection

Your lawyer or the bank’s legal team will:

Verify the property title
Conduct land registry searches
Register a Deed of Mortgage or Deed of Assignment

The mortgage becomes legally binding once stamped and registered at the land registry.

Step 7: Disbursement and Handover

Once legalities are completed:

The bank disburses funds to the seller/developer
You receive ownership access
Repayment starts based on agreed terms (usually monthly)

Mortgage Options in Nigeria

1. Federal Mortgage Bank of Nigeria (FMBN)

Up to ₦15 million loan
Interest: 6% per annum
Tenure: Up to 30 years
Only for NHF contributors

2. National Housing Fund (NHF) Scheme

Mandatory for all employees earning ₦3,000+
Monthly NHF deduction: 2.5% of basic salary
Access via FMBN-approved lenders

3. Commercial Bank Mortgages

Flexible rates and higher limits
12%–22% annual interest
Tenure: 5–20 years

4. Developer-Backed Mortgages

Offered by big developers (e.g., Mixta, Landwey, RevolutionPlus)
Often easier prequalification
Some allow rent-to-own models

Mortgage Calculator (Sample)

Let’s say you apply for a ₦10 million mortgage at 9% interest over 15 years:

Monthly payment ≈ ₦101,000
Total interest over term ≈ ₦8.2 million
Total amount repayable ≈ ₦18.2 million

Use free mortgage calculators from sites like FMBN, banks, or real estate platforms to estimate your repayments.

Common Pitfalls to Avoid

Not confirming land title authenticity
Overestimating repayment capacity
Failing to contribute to NHF if you’re eligible
Assuming developer payment plans are automatically mortgages
Ignoring legal perfection of property documents

Expert Tips

Contribute to the NHF fund early if you’re employed.
Use a lawyer to verify land documents and avoid Omo-Onile issues.
Ensure your credit history (linked to your BVN) is clean.
Ask for full breakdowns of fees: appraisal, legal, insurance, processing.

Final Word

Applying for a mortgage in Nigeria may seem complex, but with the right documentation, credit standing, and provider, the process is increasingly accessible — especially through the FMBN and NHF system.

TJ News Nigeria learnt that government reforms are underway to digitize land records and reduce property registration delays, which could make mortgages even more efficient in coming years.

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We hope this guide on how to apply for a mortgage in Nigeria helps you make informed decisions about your home financing journey.

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