How to Buy a House with a Mortgage in Nigeria
Introduction
How to Buy a House with a Mortgage in Nigeria | Owning a home is a major financial milestone, but in Nigeria, buying a house outright with cash can be challenging due to high property prices. Fortunately, mortgages provide a way to buy a home by making smaller monthly payments over time.
This guide will walk you through how to buy a house using a mortgage in Nigeria, the best mortgage providers, interest rates, eligibility requirements, and how to apply.
How to Buy a House with a Mortgage in Nigeria
What is a Mortgage?
A mortgage is a loan from a bank or financial institution that helps you buy a house. The bank lends you the money, and you repay it in monthly installments over an agreed period, usually between 10 to 30 years.
How a Mortgage Works in Nigeria
- Find a house
- Apply for a mortgage loan from a bank or mortgage lender
- The bank pays the seller on your behalf
- You repay the loan in monthly installments (with interest) over time
Example: If you buy a house for ₦50 million and pay a 20% deposit (₦10 million), the bank lends you the remaining ₦40 million, which you pay back over time with interest.
Best Mortgage Providers in Nigeria
1. Federal Mortgage Bank of Nigeria (FMBN) – National Housing Fund (NHF) Loan
- Loan Amount: Up to ₦15 million
- Interest Rate: 6% per annum (low compared to commercial banks)
- Repayment Term: Up to 30 years
- Deposit Required: 10% of the house price
- Eligibility: Nigerian workers contributing to NHF
- Special Features:
Low-interest rate Long repayment period For first-time homebuyers
Apply here: FMBN NHF Loan
2. First Bank Mortgage Loan
- Loan Amount: Up to ₦50 million
- Interest Rate: Based on market conditions
- Repayment Term: Up to 20 years
- Deposit Required: 30% of the house price
- Eligibility: Salaried and self-employed individuals
- Special Features: Quick approval process Available for both residential and investment properties
Apply here: First Bank Mortgage
3. Access Bank Home Loan
- Loan Amount: Up to ₦100 million
- Interest Rate: Varies based on credit score
- Repayment Term: Up to 20 years
- Deposit Required: 20-30% of the house price
- Eligibility: Nigerian citizens with verifiable income
- Special Features: Flexible repayment options Available for buying, building, or renovating a home
Apply here: Access Bank Mortgage
4. UBA Home Loan
- Loan Amount: Up to ₦50 million
- Interest Rate: Competitive fixed and variable rates
- Repayment Term: Up to 10 years
- Deposit Required: 20% of the property value
- Eligibility: Salaried workers and business owners
- Special Features: Fast loan processing Available for home purchase, renovation, and refinancing
Apply here: UBA Home Loans
5. Zenith Bank Mortgage Loan
- Loan Amount: Based on income and property value
- Interest Rate: Market-determined rates
- Repayment Term: Up to 15 years
- Deposit Required: 30% of the property price
- Eligibility: Salaried individuals and business owners
- Special Features: For buying, building, and renovating homes Loan structured to suit your income level
Apply here: Zenith Bank Mortgage
How to Qualify for a Mortgage in Nigeria
To qualify for a mortgage loan, you must meet the following requirements:
Be a Nigerian citizen (for NHF loans) Minimum Age: 21 years old Minimum Monthly Income: ₦100,000+ (varies by lender) Stable Employment: At least 6 months of continuous work Good Credit Score: Higher credit scores increase approval chances Deposit: 10% to 30% of the house price Collateral: The house itself serves as collateral
Steps to Buy a House Using a Mortgage in Nigeria
Step 1: Find a House
Look for a house within your budget in a secure location. Work with a real estate agent for guidance.
Step 2: Choose a Mortgage Lender
Compare interest rates, repayment periods, and deposit requirements from different banks.
Step 3: Get Pre-Approval
Most banks offer pre-approval, which tells you how much you can borrow.
Check Pre-Approval: Access Bank Mortgage Pre-Qualification
Step 4: Submit Mortgage Application
Provide:
Completed loan application form Valid ID (National ID, Passport, or Driver’s License) Proof of Income (Payslips, Tax Returns, or Bank Statements) Property Purchase Agreement
Step 5: Loan Processing & Property Valuation
The bank assesses your finances and the property value before approving the loan.
Step 6: Loan Approval & Signing Agreement
Once approved, sign the mortgage agreement and make your deposit payment.
Step 7: Move into Your New Home
The bank pays the seller, and you start monthly repayments. 
Tips for Getting the Best Mortgage in Nigeria
Improve Your Credit Score – Pay off debts and avoid late payments. Save for a Bigger Deposit – A higher deposit (30%+) reduces loan costs. Compare Interest Rates – Choose the best deal among banks. Check Hidden Fees – Consider legal fees, insurance, and processing charges. Use a Mortgage Calculator – Estimate monthly repayments before applying.
Try this calculator: Mortgage Calculator Nigeria
Frequently Asked Questions (FAQs)
1. Can I get a mortgage loan in Nigeria without a deposit?
No, most lenders require a 10% to 30% down payment. However, the NHF loan requires only 10% deposit.
2. What is the minimum salary to qualify for a mortgage in Nigeria?
Most banks require at least ₦100,000 monthly income, but this varies based on the loan amount.
3. What is the maximum mortgage loan amount in Nigeria?
Loan amounts vary, but most banks offer up to ₦100 million for home loans.
4. How long does mortgage loan approval take?
Approval usually takes 4 to 8 weeks, depending on the bank.
5. Can self-employed individuals get a mortgage in Nigeria?
Yes, but they must provide 6-12 months of financial records and tax returns.
Final Thoughts
Buying a house with a mortgage in Nigeria is easier than ever, thanks to flexible repayment plans and government-supported housing schemes. Compare interest rates, deposit requirements, and repayment terms before choosing a lender.
Ready to apply? Start here:
FMBN NHF Loan | First Bank | Access Bank
Reverse Mortgage Refinance Calculator
How to Buy a House with a Mortgage in Nigeria