Mortgage Loan Requirements in Nigeria: Eligibility, Documents, and How to Apply

Getting a mortgage loan in Nigeria can feel complicated, especially when you’re unsure what banks or mortgage institutions actually require. Between eligibility criteria, document verification, and property assessments, the process can look overwhelming.

But here’s the truth: once you understand the requirements and steps, getting approved for a mortgage loan becomes much easier.

In this guide, you’ll learn everything you need to know about mortgage loan requirements in Nigeria—from who qualifies to what documents you’ll need and how to apply through institutions like the Federal Mortgage Bank of Nigeria (FMBN) or commercial banks such as Access Bank, Stanbic IBTC, and First Bank.

Whether you’re a salary earner, self-employed professional, or first-time homebuyer, this article will help you navigate the process with confidence.

What Is a Mortgage Loan in Nigeria?

A mortgage loan is a long-term financing option that allows you to purchase or build a house while repaying the loan over time, usually between 5 and 25 years. The property serves as collateral, meaning the lender can reclaim it if the borrower fails to repay.

In Nigeria, mortgage loans are mostly provided by Primary Mortgage Institutions (PMIs) and commercial banks in partnership with bodies like the Federal Mortgage Bank of Nigeria (FMBN) or the National Housing Fund (NHF).

💡 If you’re new to mortgages, check our detailed guide on How Mortgage Loans Work in Nigeria to understand the basics before you apply.

Common Types of Mortgage Loans in Nigeria

• NHF Mortgage Loan: For salaried workers contributing to the National Housing Fund.

• Commercial Mortgage Loan: Offered by banks like Access Bank, First Bank, and GTBank for property acquisition.

• Construction Mortgage: For those building rather than buying.

• Equity Release Loan: Borrowing against the value of an existing property.

🔗 Related: NHF Loan vs Bank Mortgage Loan — compare both to decide which is best for your home financing needs.

Core Mortgage Loan Requirements in Nigeria

To qualify for a mortgage in Nigeria, you must meet a combination of eligibility, document, and property requirements. Let’s break them down.

Eligibility Requirements

Every lender has its own internal criteria, but the general eligibility requirements across most Nigerian mortgage providers include:

1. Age Limit:
   Usually between 21 and 60 years old (or before retirement for salaried workers).

2. Employment or Income Source:

   • Must be gainfully employed or self-employed with verifiable income.

   • Lenders often require at least 6–12 months of consistent income records.

3. Creditworthiness:

   • Good credit history and no record of loan default.

   • Some banks check your credit report via CRC Credit Bureau or FirstCentral.

4. Debt-to-Income Ratio (DTI):

   • Monthly loan repayments shouldn’t exceed 33% of your net monthly income.

5. Contribution to NHF (if applicable):

   • For government-backed loans, borrowers must have contributed to the NHF for a minimum of 6 months.

6. Down Payment (Equity Contribution):

   • Most lenders require 20–30% of the property value as your personal contribution.

7. Proof of Nigerian Citizenship:

   • Only Nigerian citizens or permanent residents can access most local mortgage loans.

Document Requirements

Mortgage lenders in Nigeria require comprehensive documentation to verify your identity, income, and property details. The most commonly requested documents include:

Personal Documents

• Valid means of identification (National ID, International Passport, or Driver’s License)

• Passport photographs (usually 2–4)

• Birth certificate or declaration of age

• Utility bill or proof of residence (for address verification)

Income and Employment Documents

• Employment letter or confirmation letter (for salaried workers)

• Payslips for the last 6 months

• Bank statements (6–12 months)

• Tax clearance certificate

• For business owners: CAC registration, audited financial statements, and business account statements

Property Documents

• Approved building plan or layout

• Title documents (C of O, Deed of Assignment, or Governor’s Consent)

• Valuation report from an accredited surveyor

• Offer letter or sales agreement from the property seller or developer

Pro tip: Ensure all property documents are genuine and verifiable through the appropriate land registry to avoid delays or rejection.

Property Requirements

Mortgage lenders in Nigeria evaluate the property itself before approving a loan. The property must:

• Be located in an approved urban or semi-urban area with valid title documents.

• Have a confirmed market value and legal ownership.

• Be free from encumbrances or legal disputes.

• Meet building code and planning approval standards.

• Be insurable under a mortgage protection policy.

Lenders may also require a valuation report and survey plan before disbursement.

See also: How to Apply for a Mortgage Loan in Nigeria for a full document submission checklist.

How to Apply for a Mortgage Loan in Nigeria (Step-by-Step)

Applying for a mortgage can be simplified if you follow a structured approach. Below is a clear step-by-step process:

Step 1: Determine Your Eligibility

Check that you meet all major criteria: income stability, age, and NHF contribution (if applicable). You can use a mortgage calculator to estimate repayment amounts.

Step 2: Choose a Lender or Mortgage Institution

Select a lender that offers favorable interest rates, repayment terms, and flexible equity contributions. Common mortgage institutions include:

• Federal Mortgage Bank of Nigeria (FMBN)

• Abbey Mortgage Bank

• Infinity Trust Mortgage Bank

• FirstTrust Mortgage Bank

• Access Bank Mortgage Division

Step 3: Gather Required Documents

Prepare all personal, financial, and property documents. Incomplete documentation is a common reason for application delays.

Step 4: Property Valuation and Verification

The lender sends a surveyor or valuer to assess the property and confirm its market worth and authenticity.

Step 5: Application and Credit Assessment

Submit your application form along with supporting documents. The bank evaluates your credit score and repayment ability.

Step 6: Offer Letter and Acceptance

If approved, you’ll receive a loan offer letter outlining terms, interest rate, and repayment duration. Sign and return to confirm acceptance.

Step 7: Legal Documentation and Disbursement

The lender finalizes the mortgage agreement, registers the title, and disburses funds either to the property developer or seller.

💡 Tip: For first-timers, check our guide on Best Banks Offering Mortgage Loans in Nigeria to find lenders with flexible rates and shorter approval times.

Mortgage Loan Requirements by Major Banks and Institutions

Here’s a quick look at how some top Nigerian banks structure their mortgage requirements:

Note: Rates and ranges vary; always confirm current offers directly with the bank.

Regional Differences: Lagos, Abuja, and Other States

Mortgage loan availability and property prices vary across Nigeria.

• Lagos:
  The busiest mortgage market with high property values. Lenders often require higher equity contributions (30%) and stricter document verification due to land title complexities.

• Abuja:
  Offers structured developments with clearer property documentation. Mortgage processing here tends to be faster for government-backed projects.

• Other States (e.g., Port Harcourt, Ibadan, Enugu):
  Generally, lower property prices and more affordable mortgage plans. However, title verification can take longer in some states with outdated land registries.

Common Mistakes to Avoid When Applying for a Mortgage Loan

1. Submitting Incomplete Documents:
   Missing even one required paper can stall your application for weeks.

2. Ignoring Your Credit Score:
   Lenders assess creditworthiness—settle old debts before applying.

3. Overestimating Affordability:
   Avoid loans that exceed 30–35% of your monthly income.

4. Not Verifying Property Titles:
   Ensure the property has a valid Certificate of Occupancy (C of O) or Governor’s Consent.

5. Skipping the Fine Print:
   Always review interest computation methods, insurance charges, and penalties before signing.

6. Applying with Multiple Lenders Simultaneously:
   This can flag you as high-risk due to multiple credit inquiries.

FAQs About Mortgage Loan Requirements in Nigeria

Can self-employed Nigerians apply for a mortgage loan?
Yes. You must provide verifiable income records, tax returns, and business registration documents.

What is the minimum contribution for NHF mortgage loans?
You must contribute 2.5% of your monthly income to the NHF for at least 6 months before applying.

What is the typical interest rate for mortgage loans in Nigeria?
Rates range from 6% (NHF loans) to 25% (commercial loans), depending on the lender and loan tenure.

How long does mortgage approval take?
Typically, between 3 and 8 weeks, depending on document completeness and property verification.

Can I use a mortgage loan to build a new house?
Yes, through a construction mortgage offered by some PMIs and FMBN.

What happens if I default on payments?
The lender may repossess and sell the property to recover the loan amount.

🔗 Related: Mortgage for Low-Income Earners in Nigeria — explore affordable options under FMBN and NHF schemes.

Conclusion: Getting Ready for Your Mortgage Application

Owning a home through a mortgage in Nigeria is achievable if you understand the requirements and prepare properly.

Start by improving your credit score, gathering your documents, and choosing a reliable lender.
Whether you apply through the NHF program or a commercial bank, being well-prepared ensures faster approval and better loan terms.

🏡 Next Read:

• Mortgage Loan in Nigeria (Pillar Guide)

• How to Apply for a Mortgage Loan in Nigeria

• Mortgage Loan Without Collateral in Nigeria