Buying or building a home in Nigeria is one of the biggest dreams for most people, but with today’s housing prices, very few can afford to pay outright. That’s where a home loan in Nigeria (also called a mortgage) comes in. It’s the smarter way to turn your rent money into ownership and make your dream home a reality without waiting years to save up.
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In this guide, you’ll learn how home loans work in Nigeria, the best banks offering them, current interest rates, and the exact steps to apply, whether you’re a first-time buyer, a civil servant under the National Housing Fund (NHF), or a professional earning a steady income.
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You’ll also see:
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The difference between NHF and commercial bank mortgages,
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The top home loan options by city (Lagos, Abuja, Port Harcourt), and
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Insider tips to get approved faster.
If you’ve been wondering, “How can I get a home loan in Nigeria?”—this is your complete, no-fluff guide to every option available right now.
What Is a Home Loan in Nigeria?
A home loan (or mortgage) is a type of credit that helps individuals purchase or build a home, repayable in monthly installments over several years. In Nigeria, home loans are typically secured by the property itself—meaning the lender can reclaim it if you default.
Home loans can come from:
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Commercial banks (e.g., Access Bank, Zenith Bank)
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Primary Mortgage Institutions (PMIs)
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Federal Mortgage Bank of Nigeria (FMBN)
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Cooperative societies and microfinance banks
Most loans run between 5 and 25 years, with interest rates ranging from 6% (government-backed) to 22% (commercial), depending on the lender and your credit profile.
💡 Learn more about Mortgage Loan in Nigeria – Full Guide
How Home Loans Work in Nigeria
Here’s a simple breakdown of how the mortgage system functions:
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Application: You apply through a bank or mortgage institution.
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Eligibility Assessment: The lender reviews your income, credit history, and employment stability.
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Property Evaluation: The property you intend to buy or build is assessed for value.
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Loan Approval: If approved, you get a loan covering 60–90% of the property’s cost.
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Repayment: You repay monthly (principal + interest) over the loan term, usually 10–25 years.
Tip: Most banks require proof of stable income and evidence that your salary passes through your account monthly.
💡 If you’re new to mortgages, check our detailed guide on How Mortgage Loans Work in Nigeria to understand the basics before you apply.
Top Banks & Institutions Offering Home Loans in Nigeria
Below are some of the most trusted lenders currently offering home loans and mortgage options:
1. Federal Mortgage Bank of Nigeria (FMBN)
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Type: Government-backed mortgage
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Product: National Housing Fund (NHF) Loan
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Interest rate: 6% per annum (fixed)
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Maximum loan: ₦15 million
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Tenure: Up to 30 years
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Eligibility: Nigerian workers contributing to the NHF scheme
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Purpose: Buy, build, or renovate a residential property
Why choose it: Lowest interest rate in Nigeria, ideal for first-time homebuyers.
2. Access Bank Home Loan
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Interest rate: 18%–22% per annum
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Loan amount: ₦5 million – ₦150 million
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Tenure: Up to 20 years
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Requirements: Proof of income, property documents, 20–30% equity contribution
Best for: Salaried individuals and professionals looking for flexible repayment.
3. First Bank Mortgage
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Interest rate: Around 17% per annum
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Loan amount: Up to ₦50 million
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Tenure: Up to 20 years
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Features: Salary deduction option, joint mortgage option for couples
Best for: Families or joint applicants.
4. Zenith Bank Mortgage Loan
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Interest rate: 19%–21%
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Tenure: Up to 15 years
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Equity contribution: 30% minimum
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Purpose: Home purchase or renovation
Best for: Mid-to-high-income earners with consistent cash flow.
5. UBA Home Loan
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Loan amount: Up to ₦50 million
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Tenure: 20 years
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Interest rate: 18%–20%
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Requirements: Salary domiciliation, proof of property title
Best for: Customers with an existing UBA salary account.
6. Stanbic IBTC Mortgage
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Interest rate: Around 19%
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Loan amount: Up to ₦150 million
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Tenure: 25 years
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Eligibility: Verified salary earners and business owners
Best for: Higher-end properties and flexible repayment options.
Current Home Loan Interest Rates in Nigeria
| Lender | Interest Rate (per annum) | Tenure | Max Amount | Best For |
|---|---|---|---|---|
| FMBN (NHF Loan) | 6% (fixed) | Up to 30 years | ₦15 million | Low-income earners |
| Access Bank | 18%–22% | 20 years | ₦150 million | Salaried workers |
| Zenith Bank | 19%–21% | 15 years | ₦100 million | Mid-income earners |
| UBA | 18%–20% | 20 years | ₦50 million | Professionals |
| Stanbic IBTC | 19% | 25 years | ₦150 million | High-income earners |
| First Bank | 17% | 20 years | ₦50 million | Families |
How to Qualify for a Home Loan in Nigeria
To qualify, most lenders will require the following:
Basic Requirements
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Nigerian citizenship
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Age between 21 and 60 years
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Steady income (salary or verified business)
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BVN, ID, and tax identification number (TIN)
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Bank statements (6–12 months)
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Property title documents
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Minimum equity contribution (usually 20–30%)
NHF Loan (FMBN) Requirements
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Be a registered NHF contributor for at least 6 months
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Provide proof of contribution
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Have a land title or building plan approved by the relevant authorities
How to Apply for a Home Loan in Nigeria
Here’s the standard step-by-step process:
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Research and compare lenders. Use interest rate calculators and check requirements.
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Gather documents. Include salary slips, ID, tax info, and property documents.
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Apply through your preferred bank or mortgage institution.
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Undergo property valuation and loan assessment.
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Get approval and sign the loan offer letter.
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Disbursement. The bank pays the seller or releases funds for building.
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Repayment begins. Monthly or quarterly installments start immediately after disbursement.
Pro Tip: Some banks offer pre-approval so you can know your eligible amount before finding a property.
See also: How to Apply for a Mortgage Loan in Nigeria for a full document submission checklist.
NHF Loan vs. Bank Mortgage: Which Is Better?
| Feature | NHF Loan (FMBN) | Bank Mortgage |
|---|---|---|
| Interest Rate | 6% fixed | 17%–22% variable |
| Tenure | Up to 30 years | Up to 20–25 years |
| Eligibility | NHF contributors | General public |
| Processing Time | 4–8 weeks | 2–4 weeks |
| Equity Contribution | 10%–30% | 20%–40% |
| Flexibility | Limited | High |
Note:
If you’re a salary earner contributing to NHF, go for the FMBN loan (lowest interest).
If you need faster approval or a higher amount, go for commercial bank mortgages.
Home Loan Options by Location
Many lenders tailor their offers by city or region. Here’s a quick look:
Lagos
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High-value real estate, larger loan amounts
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Popular banks: Stanbic IBTC, Access Bank, First Bank
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Areas covered: Lekki, Ajah, Ikeja, Ikorodu
Abuja
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Easier access to NHF and government-backed loans
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FMBN regional office actively processes loans
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Ideal for civil servants and federal workers
Port Harcourt & Other States
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Mortgage options available through Access, UBA, and local PMIs
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Developers often partner with banks to pre-approve buyers
Tips to Get Approved Faster
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Maintain a clean credit history.
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Domicile your salary with the lending bank.
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Have at least 20–30% equity ready.
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Choose a property with clear title documents.
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Keep your tax payments and employment records up-to-date.
FAQs About Home Loans in Nigeria
Can self-employed people apply for a home loan?
Yes. You’ll need to show verified business income, CAC documents, and tax clearance.
What’s the minimum salary for a home loan?
Most banks require a minimum monthly income of ₦150,000–₦250,000 for individual applicants.
Can I get a home loan without collateral?
Not really. The property itself acts as collateral for the loan.
How long does loan approval take?
NHF loans may take 1–2 months; commercial banks usually take 2–4 weeks.
Can Nigerians in the diaspora apply?
Yes. Some banks, like Access Bank and Zenith, have Diaspora Mortgage Programs for Nigerians living abroad.
What you should know
Getting a home loan in Nigeria is no longer reserved for the rich or well-connected. With the right information and preparation, anyone with a steady income can now own property, whether through the Federal Mortgage Bank’s NHF loan or flexible commercial bank mortgages.
Here’s the quick takeaway:
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💡 Lowest interest rate: NHF loan at just 6% per year.
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🏦 Fastest approval: Commercial banks like Access, Zenith, and First Bank.
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🧾 Biggest mistake to avoid: Applying without proper documentation or a clear property title.
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📈 Smartest move: Compare rates, calculate your monthly repayment, and choose a lender that matches your income level.
Don’t wait until prices go up again; start your journey toward homeownership today. A simple mortgage application could be the difference between paying rent forever and paying toward your own home.
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