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

Owning a home in Nigeria is a dream for many, yet rising property prices in Lagos, Abuja, and Port Harcourt make it hard to pay outright. That’s where a mortgage loan helps, allowing you to buy or build your home and repay it gradually through monthly installments.

But understanding how to apply for a mortgage loan in Nigeria can be tricky. Between choosing a lender, meeting eligibility criteria, and preparing documents, many first-time applicants get overwhelmed.

This guide breaks it down step-by-step—from how mortgage loans work to the types available (NHF, commercial, and developer-linked), the documents required, and expert tips to boost approval chances.

By the end, you’ll know exactly how to apply for a mortgage loan in Nigeria through the Federal Mortgage Bank (FMBN) or top private lenders like FirstBank, Stanbic IBTC, Access Bank, and Abbey Mortgage.

How Mortgage Loans Work in Nigeria

Before learning how to apply for a mortgage loan in Nigeria, it helps to understand how the system works, the structure, the repayment model, and the key providers.

A mortgage loan is a long-term financing plan where a bank or mortgage institution lends you money to buy or build a home, using the property as collateral. You repay monthly or quarterly, covering both the principal (amount borrowed) and interest (cost of borrowing). Tenures typically range from 10 to 30 years, depending on income and lender terms.

Your repayment depends on four factors: loan amount, interest rate, repayment tenure, and equity contribution (usually 10–30%). For example, borrowing ₦15 million at 15% over 15 years costs roughly ₦210,000–₦230,000 monthly, so use a mortgage calculator to gauge affordability.

In Nigeria, mortgage loans come from three main sources:

• Primary Mortgage Banks (PMBs) like Abbey Mortgage, Infinity Trust, and Mayfresh Mortgage Bank.

• Commercial banks such as FirstBank, Access Bank, and Stanbic IBTC.

• Government schemes like the FMBN/NHF offer low interest (≈6%) and up to 30-year terms for contributors.

Choosing the right lender can save you millions—compare rates, tenure, and requirements before committing.

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

NHF vs Bank vs Developer Mortgages (Quick Comparison)

When learning how to apply for a mortgage loan in Nigeria, choosing the right loan type is crucial. The main options are NHF (via FMBN), commercial/private bank mortgages, and developer-linked mortgages—each with unique benefits and trade-offs.

Feature	NHF (FMBN)	Bank / PMB	Developer-Linked
Interest Rate	~6% (fixed)	15–25% (variable)	10–18%
Repayment Tenure	Up to 30 years	10–20 years	10–25 years
Equity / Down Payment	10–20%	20–30%	10–25%
Processing Speed	Slower (3–6 months)	Faster (2–6 weeks)	Moderate
Best For	Affordable housing seekers	Quick approvals, high-value homes	Estate or off-plan buyers

How to Choose the Right Option

✅ NHF Mortgage: Best for low- to middle-income earners already contributing to the National Housing Fund.
✅ Bank or PMB Mortgage: Ideal for higher earners seeking quick approval and flexible terms.
✅ Developer-Linked Mortgage: Perfect for estate or off-plan buyers with rent-to-own options.

Pro Tip: Apply for both NHF and commercial mortgage pre-approvals to compare rates, terms, and timelines—it gives you more negotiation power.

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

Eligibility Criteria for Mortgage Loans in Nigeria

Before starting the process of how to apply for a mortgage loan in Nigeria, it’s important to confirm if you qualify. Each lender—whether a Primary Mortgage Bank (PMB), commercial bank, or the Federal Mortgage Bank of Nigeria (FMBN)—has unique eligibility rules. Understanding them early helps you avoid delays or rejection.

Criteria	Typical Requirement	Details/Notes
Age	21–60 years	The applicant must complete repayment before retirement.
Employment Type	Salaried or self-employed	Provide payslips or proof of consistent business income.
Minimum Monthly Income	₦100,000+ (varies by lender)	Some lenders may require ₦150,000–₦300,000 for larger loans.
Credit Record	No major defaults	Maintain a clean credit history and settle outstanding debts.
NHF Contribution	Minimum 6 months	Applies to FMBN/NHF mortgage applicants only.
Equity Contribution	10–30% of property value	This is your down payment or personal stake.
Property Eligibility	Valid title documents	Property must have a C of O, a Deed of Assignment, or Governor’s Consent.
Nationality	Nigerian or legal resident	NHF loans are for Nigerians; private banks may include residents.

Tips to Improve Your Mortgage Eligibility

✅ Pay off outstanding debts and maintain clean bank statements.
✅ Show consistent income or verified business revenue.
✅ Contribute to the NHF early if applying through FMBN.
✅ Avoid job changes close to your application.
✅ Keep all property and ID documents up-to-date.

Eligibility isn’t just about income—it’s about consistency, documentation, and trustworthiness.

Documents Required for a Mortgage Loan in Nigeria

Submitting complete and consistent documents is key to smooth approval. Missing one file can delay your loan for months.

A. Personal Documents

• Completed mortgage application form

• Valid ID (NIN, Passport, Driver’s License, or Voter’s Card)

• Passport photographs (2–4)

• Birth certificate or declaration of age

• Utility bill/proof of residence

• Tax Identification Number (TIN)

B. Employment & Financial Documents

• Payslips (3–6 months)

• Bank statement (6–12 months)

• Employment or confirmation letter

• Proof of NHF contribution (if applicable)

• CAC certificate and tax clearance (for self-employed)

C. Property Documents

• Title document (C of O / Deed of Assignment)

• Property valuation report

• Offer letter from seller/developer

• Approved building plan

• Survey plan

💡 Pro Tip: Keep both digital and physical copies ready. Well-organized paperwork builds lender confidence.

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

Here’s a simplified 10-step process that works whether you’re applying through NHF/FMBN or a commercial bank:

Step 1: Check Eligibility

Confirm you meet age, income, and contribution requirements.

Step 2: Compare Lenders

Use a comparison table or calculator to assess rates and tenure.

Step 3: Get Prequalified

Submit income proof and property details for a pre-approval estimate.

Step 4: Complete the Application Form

Attach all documents and submit officially.

Step 5: Property Valuation & Legal Checks

Lender verifies property ownership and market value.

Step 6: Loan Appraisal & Approval

Bank reviews income, credit score, and property documentation.

Step 7: Pay Equity Contribution

Deposit 10–30% of the property’s value.

Step 8: Sign Mortgage Agreement

Includes legal registration and insurance setup.

Step 9: Loan Disbursement

Funds are released to the seller or developer.

Step 10: Start Repayment

Repay monthly via auto-deduction or direct transfer.

Typical Processing Time: 6–12 weeks from start to disbursement.

Mortgage Loan Costs and Hidden Fees in Nigeria

Pro Tip: Always request a loan offer breakdown to avoid hidden fees.

Mortgage Repayment in Nigeria

Repayment is made monthly or quarterly and includes both principal and interest.

Example: ₦10M @15% for 15 years ≈ ₦139,000/month
NHF @6% for 30 years ≈ ₦60,000/month

Rule of Thumb: Keep total repayments ≤ 35% of your monthly income.

Common Mistakes to Avoid When Applying

Smart Borrower Rule:
“If I lose income for 3 months, can I still keep this home?”
If not, reduce your loan amount or extend tenure.

NHF vs Bank Mortgage in Nigeria

Expert Tip:
NHF saves millions long-term but takes longer.
Bank loans are faster but more expensive — choose based on your priority.

How to Boost Your Mortgage Approval Chances

1. Maintain a clean credit report.

2. Show 12+ months of stable income.

3. Increase your down payment (20–30%).

4. Submit a well-labeled, consistent document set.

5. Keep DTI under 35%.

6. Buy a property with a verified title.

7. Request prequalification before house-hunting.

8. Consider a joint application with spouse/family.

9. Choose accredited PMBs (Abbey, Infinity Trust, TrustBond, etc.).

Frequently Asked Questions (FAQ)

Conclusion: Your Path to Homeownership Starts Now

Getting a mortgage loan in Nigeria may seem challenging at first, but with the right guidance, it’s completely achievable. The secret is understanding the process — from eligibility to repayment — and preparing your finances ahead of time.

Before applying, make sure you:
✅ Verify all property documents
✅ Compare rates between NHF and commercial lenders
✅ Budget for equity, legal, and valuation fees
✅ Keep your credit record clean
✅ Plan your repayments around your income

If you’re a first-time buyer, the National Housing Fund (NHF) offers low rates and flexible terms — a great place to start. But if you prefer speed and convenience, private banks can also provide solid options.

Remember, owning a home isn’t just about borrowing — it’s about planning, discipline, and financial confidence. With this guide, you’re already one step closer to turning your dream home into reality.

🏡 Next Read:

• Mortgage Loan in Nigeria (Pillar Guide)

• Mortgage for Low-Income Earners in Nigeria

• Mortgage Loan Without Collateral in Nigeria

• Mortgage Interest Rate in Nigeria

🏡 Author: Casey Frost
🔗 Source: TrueSport.com.ng