A real estate mortgage is a legal agreement where a borrower pledges a property (residential, commercial, or land) as collateral to a lender, usually a bank or mortgage institution, in exchange for a loan to purchase or develop real estate. The borrower retains ownership but the lender has the right to seize the property if repayments are not met.

• Nigerian citizens, usually aged 21–60 years.
• Employees with stable income or self-employed individuals with verifiable earnings.
• Some banks also accept expatriates or non-citizens, depending on policies.

• Fixed-rate mortgage – Interest rate remains constant throughout the loan tenure.
• Variable or floating-rate mortgage – Interest rate changes based on market or Central Bank of Nigeria (CBN) policies.
• Government-assisted mortgage schemes – Such as Federal Mortgage Bank of Nigeria (FMBN) programs for public sector workers.
• Commercial mortgages – Typically offered by commercial banks to individuals or companies for residential or commercial properties.

• Depends on the borrower’s income, credit history, and property value.
• Generally, banks provide 60–90% of the property value.
• For first-time buyers under some government schemes, the loan-to-value ratio may be higher.

• Usually 5 to 20 years.
• Some schemes, like FMBN, allow up to 25 years for public sector employees.

Common requirements include:

• Proof of identity (passport, national ID, driver’s license)
• Proof of income (salary slips, bank statements, tax clearance)
• Property documents (survey plan, title deed, governor’s consent)
• Completed mortgage application form

• Rates vary between 15% – 25% per annum, depending on the bank, loan type, and borrower’s creditworthiness.
• Government-backed schemes may offer lower rates, e.g., FMBN mortgages at around 9–10% per annum for certain categories.

• Most banks allow early repayment, but some may charge a prepayment fee or penalty.
• It’s advisable to check the terms and conditions before committing.

• The lender can foreclose on the property after a legal process.
• Credit history will be negatively affected, making future loans harder to obtain.
• Some lenders may allow restructuring or rescheduling of payments.

• Yes. Some include:

  • Federal Mortgage Bank of Nigeria (FMBN) schemes for public workers.
  • National Housing Fund (NHF), where contributors can access low-interest mortgage loans.
  • Private banks also partner with developers for affordable housing loans.