How To Apply For Mortgage Loan In Nigeria — Step by Step Guide

Do you want to know how to apply for Mortgage loan in Nigeria?

A mortgage is a loan in which property is used as collateral. The debtor agrees with the bank in which the homebuyer receives cash upfront then makes payments over a set period until he pays back the lender in full.

In this article, we’ll show you how to apply for Mortgage loan in Nigeria.

This step-by-step guide strolls you through the process of applying for a mortgage in Nigeria, explaining what you do and what the lender does.

How To Apply For Mortgage Loan In Nigeria

If you’re thinking about buying a house in Nigeria, applying for a mortgage can seem like a difficult assignment. You will need to provide lots of information and fill in loads of forms, but being prepared will help the process move as smoothly as possible. 

This is how to apply for Mortgage loan in Nigeria:

• Open a savings account with a registered Primary Mortgage Institution (PMI)
• Contribution to the fund for at least six months prior
• Have satisfactory evidence of regular flow of income to guarantee the loan
• Submit photocopies of valid title documents (e.g. C of O)
• Approved survey/site plans
• Approved building plans
• Priced bill of Quantities where applicable

Can you get a mortgage in Nigeria?

Yes, anyone in Nigeria can get a mortgage loan. So far you have a job or earning an income. 

How to get a mortgage loan in Nigeria?

Here is how to get mortgage loan in Nigeria:

• Your monthly income and expenditure
• Your debt profile
• The value of the property you want
• Determine if the mortgage is something you can afford

How mortgage works in Nigeria

In Nigeria, when you get a mortgage from the bank, they will provide you with a certain amount of money to buy the house. You agree to pay back your loan – with interest – over many years. At that moment, you are not yet the owner of the house until the mortgage is paid off.

How many mortgage banks are in Nigeria?

All the 22 commercial banks in Nigeria gives Mortgage.

Which mortgage bank is the best in Nigeria?

• Federal Mortgage Bank of Nigeria (FMBN)
• First Bank Mortgage Limited.
• Platinum Mortgage Banks PLC.
• Safetrust Mortgage Bank.
• Abbey Mortgage Bank PLC.
• Lagos Building Investment Company.
• Resort Savings and Loans.
• Trustbond Mortgage Bank.

The mortgage interest rate in Nigeria

The interest rate is concluded by two things: current market rates and the level of risk the bank takes to lend you money.