Mortgage Loan in Nigeria 2025/26 Your Complete Guide to Financing a Home

Mortgage Loan Requirements in Nigeria

Before you can access a mortgage loan in Nigeria, you must meet certain requirements set by your lender — whether it’s a commercial bank, mortgage bank, or the Federal Mortgage Bank of Nigeria (FMBN). While details may differ by institution, most lenders follow similar eligibility and documentation guidelines.

A. Personal Eligibility Criteria

• Age: Applicants must be between 21 and 60 years old (some lenders extend up to 65 for self-employed borrowers).
• Employment Status: You must have a stable job or a verifiable business income.
• Income Level: Your monthly income should comfortably cover loan repayments — most lenders require that repayments do not exceed 35% of your monthly income.
• Credit History: A clean credit record is essential. Any default or unpaid loan may affect your eligibility.

B. Documentation Required

When applying for a mortgage, prepare the following documents:

• Valid means of identification (NIN, International Passport, or Voter’s Card)
• Recent passport photographs
• Letter of employment or business registration documents
• Pay slips for the last 3–6 months
• Bank statements (usually for the last 6–12 months)
• Proof of address (utility bill or tenancy agreement)
• Property title documents (Certificate of Occupancy or Deed of Assignment)
• Tax Clearance Certificate or NHF contribution proof (for government-backed loans)

C. Property Requirements

• The property must be verifiable and legally registered.
• It should have all the necessary land and title documents.
• The property value must align with the requested loan amount.
• Some lenders prefer properties in urban or developed areas for better resale value.

D. Down Payment (Equity Contribution)

Most Nigerian mortgage institutions require an upfront equity contribution of 10%–30% of the property’s total value.

Example: If your home costs ₦20 million, your down payment may range from ₦4 million to ₦6 million. The bank finances the balance, which you repay over time through monthly installments.

See our full guide: How to Apply for a Mortgage Loan in Nigeria

Best Banks Offering Mortgage Loans in Nigeria

Several commercial banks and mortgage institutions in Nigeria provide home loan products tailored to different income levels and property goals. Below are the top mortgage loan providers in Nigeria for 2025 — including their key features, interest rates, and eligibility requirements.

1. Federal Mortgage Bank of Nigeria (FMBN)

The Federal Mortgage Bank of Nigeria is the primary government-backed mortgage provider in the country. It offers low-interest housing loans through the National Housing Fund (NHF) scheme.

• Interest rate: 6% per annum
• Tenure: Up to 30 years (based on age and income)
• Maximum loan amount: ₦15 million
• Requirement: NHF contribution for at least 6 months
• Best for: Salaried workers and first-time homebuyers

See full guide: FMBN Mortgage Loan – How It Works

2. Access Bank Mortgage Loan

Access Bank provides flexible home financing options for individuals and salary earners.

• Interest rate: ~18–22%
• Tenure: Up to 20 years
• Minimum equity: 20%
• Purpose: Home purchase, construction, or renovation

3. Stanbic IBTC Home Loan

Stanbic IBTC offers long-term mortgage loans for both Nigerian and diaspora clients.

• Tenure: Up to 20 years
• Interest rate: Competitive and market-driven
• Eligibility: Includes self-employed professionals
• Feature: Quick digital prequalification

4. First Bank “MyHome Mortgage”

The MyHome Mortgage by First Bank is one of the most popular home financing products in Nigeria.

• Interest rate: 17–25%
• Tenure: Up to 20 years
• Loan amount: ₦1 million – ₦50 million
• Purpose: Home purchase or equity release

5. UBA Home Loan

UBA offers convenient mortgage options for salary earners and entrepreneurs.

• Tenure: Up to 20 years
• Requirement: 6 months of consistent salary credits
• Purpose: Outright purchase or construction

6. Abbey Mortgage Bank

Abbey Mortgage Bank is one of Nigeria’s oldest Primary Mortgage Banks (PMBs), known for supporting NHF contributors and middle-income earners.

• Interest rate: Lower than most commercial banks
• Tenure: Flexible, up to 20 years
• Supports: FMBN/NHF loans

7. Infinity Trust Mortgage Bank

Infinity Trust Mortgage Bank provides fast and flexible mortgage financing for both salaried and self-employed individuals.

• Tenure: Up to 25 years
• Minimum equity: 10–30%
• Feature: Quick processing and easy documentation

Summary: When selecting a mortgage bank in Nigeria, compare interest rates, loan tenure, and eligibility requirements. Government-backed options like FMBN and NHF are ideal for low-income earners, while commercial banks such as Access Bank and Stanbic IBTC offer more flexibility for high-income earners and investors.

Next: Mortgage Interest Rates in Nigeria (Update) →

Mortgage Interest Rates in Nigeria

Mortgage interest rates in Nigeria differ based on the lender type, loan structure, and broader economic factors — especially the Central Bank of Nigeria (CBN)’s Monetary Policy Rate (MPR). As of 2025, here’s a detailed look at the current mortgage loan interest rates in Nigeria and what influences them.

A. Government-Backed Mortgage Rates (FMBN & NHF)

Government-backed mortgage loans, managed by the Federal Mortgage Bank of Nigeria (FMBN) through the National Housing Fund (NHF), offer the most affordable interest rates in the market.

Verdict: These are the most affordable mortgage loans in Nigeria, primarily designed for low- and middle-income earners.

B. Commercial Bank Mortgage Rates

Commercial banks typically charge higher mortgage interest rates, influenced by market risks, property type, and creditworthiness.

C. Primary Mortgage Banks (PMBs)

Primary Mortgage Banks (PMBs) such as Abbey Mortgage Bank, Infinity Trust Mortgage Bank, and Brent Mortgage Bank often offer slightly lower rates than commercial banks — typically between 15% and 22%.

Advantages:

• Simple documentation and faster processing
• Integration with NHF/FMBN loan schemes
• Tailored for middle-income earners

D. Factors That Influence Mortgage Interest Rates in Nigeria

• CBN Monetary Policy Rate (MPR): When the MPR rises, lending rates generally follow.
• Type of Mortgage: Fixed-rate loans have stable payments, while variable-rate loans can fluctuate.
• Loan Tenure: Longer tenures may attract slightly higher cumulative interest.
• Borrower Profile: Your job stability, income level, and credit score all affect rate offers.
• Equity Contribution: A higher down payment can sometimes reduce your rate.

Summary: If you qualify for NHF or FMBN loans, the 6% annual rate remains the most affordable mortgage option in Nigeria. For commercial banks, expect interest rates between 17% and 25%, depending on your lender, property type, and financial profile.

Next: Mortgage for Low-Income Earners in Nigeria – Affordable Options →

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

Applying for a mortgage loan in Nigeria requires preparation, documentation, and understanding of your lender’s approval process. While details differ slightly among banks and mortgage institutions, most follow a similar pattern. Here’s a detailed step-by-step guide on how to apply successfully.

Step 1: Determine Your Eligibility

Before starting your mortgage application, assess your financial readiness by reviewing:

• Monthly income and job stability
• Credit score and any existing debts
• Property type and location (urban properties are often preferred)
• NHF contribution status (for government-backed loans)

Tip: Use an online mortgage calculator to estimate how much you can afford based on your income and loan tenure.

🔗 Try our How to Calculate a Mortgage Loan in Nigeria guide.

Step 2: Choose the Right Mortgage Type

Select a mortgage option that fits your income level and property goals:

• Government-backed loans (NHF/FMBN): Ideal for low- or middle-income earners and public sector workers.
• Commercial bank mortgages: Offer higher loan amounts with flexible property options.
• Developer-assisted or cooperative loans: Good for shorter-term or community-based home projects.

🔗 Compare loan types in our Types of Mortgage Loans in Nigeria guide.

Step 3: Gather Required Documents

Prepare all documents in advance to avoid delays. Typical requirements include:

• Proof of identity (NIN, International Passport, or Voter’s Card)
• Employment letter or business registration documents
• Recent payslips and bank statements (6–12 months)
• Property title documents (C of O, Deed of Assignment, etc.)
• NHF passbook or contribution slip (for FMBN loans)

🔗 See the full checklist: Mortgage Loan Requirements in Nigeria

Step 4: Approach a Lender or Mortgage Bank

You can apply directly with:

• A commercial bank such as Access Bank, First Bank, or Stanbic IBTC
• A Primary Mortgage Bank (PMB) like Abbey or Infinity Trust
• The Federal Mortgage Bank of Nigeria (FMBN) for NHF contributors

The lender will provide an application form and may request an appraisal of your chosen property.

Step 5: Property Valuation and Offer Letter

Once your documents are reviewed, the bank sends a certified valuer to assess the property’s market value. If approved, you’ll receive an offer letter containing:

• Approved loan amount
• Interest rate and repayment tenure
• Terms and conditions

You must sign and return the offer letter to continue with the loan process.

Step 6: Make Your Down Payment

Pay your equity contribution (usually 10–30% of the property value). This serves as your financial commitment and lowers the lender’s risk.

Example: For a ₦20 million home, you may pay ₦4–₦6 million as equity.

Step 7: Loan Disbursement and Repayment

After all documentation and legal checks are complete, the bank disburses the loan amount directly to the property seller. You’ll then begin monthly repayments — often auto-deducted from your salary or account — over the agreed tenure (typically 10–25 years).

Summary: Applying for a mortgage loan in Nigeria involves assessing your eligibility, selecting the appropriate mortgage product, and submitting accurate documentation. The process usually takes 4–8 weeks from start to finish, depending on the lender and property verification.

Next: First-Time Home Buyer in Nigeria – Step-by-Step Guide →

Mortgage for Low-Income Earners in Nigeria

For many Nigerians, the biggest obstacle to homeownership isn’t a lack of desire — it’s affordability. Traditional mortgage loans from commercial banks often come with high interest rates and strict documentation requirements, putting them out of reach for low- and middle-income earners.

Fortunately, several government-backed and cooperative housing programs are designed to make homeownership more inclusive and achievable for everyone.

A. National Housing Fund (NHF) Loan – via FMBN

The National Housing Fund (NHF) remains the most accessible mortgage option for low-income earners in Nigeria. Managed by the Federal Mortgage Bank of Nigeria (FMBN), it is available to all Nigerians who contribute 2.5% of their monthly salary to the NHF scheme.

Key Features:

• Interest Rate: 6% per annum (fixed)
• Tenure: Up to 30 years
• Maximum Loan Amount: ₦15 million
• Collateral: The property being financed
• Eligibility: Salaried workers contributing to NHF for at least 6 months

Example:
If you earn ₦200,000 monthly and contribute ₦5,000 (2.5%) to NHF, you could qualify for a long-term, low-interest mortgage loan from FMBN.

🔗 Read more: FMBN Mortgage Loan – Everything You Need to Know

B. Rent-to-Own Schemes

Some mortgage institutions and state housing authorities now offer Rent-to-Own programs. Under this system, you occupy the home first as a tenant while gradually paying toward ownership.

Examples include:

• Lagos State Rent-to-Own Scheme
• FMBN Rent-to-Own Program

Benefits:

• No large upfront payment required
• Monthly rent payments count toward home ownership
• Ownership transfers once full payment is made

C. Cooperative Housing Loans

Many cooperative societies — especially workplace or trade-based cooperatives — offer members access to housing loans with flexible repayment options and lower interest rates than banks.

Benefits:

• Easier qualification with minimal paperwork
• Group guarantee system instead of property collateral
• Shorter approval and disbursement process

Tip: Join a registered housing or multi-purpose cooperative to improve your access to affordable home financing options.

D. Microfinance & NGO Housing Programs

A few microfinance banks and NGOs in Nigeria partner with developers to provide small-scale housing loans for individuals earning below ₦200,000 monthly.

Examples:

• LAPO Microfinance Bank – Offers housing and micro-mortgage loans
• Family Homes Fund (FHF) – Focuses on affordable housing for low-income earners

Summary: Low-income earners in Nigeria can still achieve homeownership through NHF loans, Rent-to-Own programs, Cooperative housing loans, and microfinance initiatives. The key is to start small, contribute consistently, and leverage available government-backed programs.

🔗 Next: Mortgage Loan Without Collateral in Nigeria – What’s Possible?

First-Time Home Buyer in Nigeria

Buying your first home can feel overwhelming — especially in Nigeria’s complex real estate market. But with the right knowledge and preparation, you can confidently navigate the mortgage process and make smart financial decisions.

Here’s a complete guide to help you buy your first home in Nigeria with confidence:

A. Understand Your Budget

Start by assessing your financial capacity. Ask yourself:

• How much can I afford for monthly repayments?
• Do I have enough saved for the down payment?
• What’s my total income-to-debt ratio?

Tip: Keep your monthly repayment below 35% of your net income for financial comfort.

B. Research Mortgage Options

First-time buyers should explore government-backed loans like
FMBN or the National Housing Fund (NHF) first — they’re more affordable and flexible.

If you’re ineligible (for example, self-employed or non-NHF contributor), explore commercial bank mortgages or developer-assisted financing.

🔗 Compare options in our Types of Mortgage Loans in Nigeria guide.

C. Build Your Documentation Early

Banks and mortgage institutions in Nigeria value proof of financial stability. Gather and organize:

• Payslips or tax returns (for self-employed)
• 6–12 months of bank statements
• Employment or business registration documents
• Property documents (C of O, Deed of Assignment, etc.)

Checklist: Mortgage Loan Requirements in Nigeria

D. Apply Through a Reliable Channel

If you’re using the NHF scheme, apply through an accredited
Primary Mortgage Bank (PMB), such as:

• Abbey Mortgage Bank
• Platinum Mortgage Bank
• Infinity Trust Mortgage Bank

For bank mortgages, apply directly through your bank’s housing finance or mortgage division.

E. Choose the Right Property

Before signing, ensure:

• The property has a valid C of O or Governor’s Consent
• The developer is registered and reputable
• The location has growth potential and good security

Warning: Avoid buying properties with incomplete documentation — banks will reject them.

F. Prepare for Extra Costs

Besides your down payment, budget for:

• Legal fees: 1–2% of property value
• Valuation fees: ₦50,000–₦200,000
• Insurance or administrative charges

Summary: As a first-time home buyer in Nigeria, success starts with proper planning — understand your finances, explore affordable loan options, gather the right documents, and work only with accredited lenders.

🔗 Next: How to Calculate a Mortgage Loan in Nigeria – Step-by-Step Formula

How to Calculate a Mortgage Loan in Nigeria

Before applying for a mortgage, it’s important to understand how much you’ll be paying monthly — and for how long. Knowing how to calculate your mortgage helps you avoid surprises and ensures the loan fits comfortably within your budget.

A. Key Components of a Mortgage Loan

Every mortgage loan has three main parts:

• Principal – the amount you borrow.
• Interest rate – the cost of borrowing.
• Tenure – how long you’ll take to repay (in years or months).

Your monthly payment is determined by these three factors.

B. The Basic Formula for Mortgage Calculation

The standard mortgage payment formula is:

M = P × [ r(1 + r)n ] / [ (1 + r)n - 1 ]

Where:

• M = Monthly repayment amount
• P = Principal (loan amount)
• r = Monthly interest rate (annual rate ÷ 12)
• n = Number of months (loan tenure × 12)

C. Example Calculation

Let’s say:

• Loan amount (P) = ₦15,000,000
• Annual interest rate = 10%
• Tenure = 15 years

Step 1: Convert annual rate to monthly → 10% ÷ 12 = 0.0083
Step 2: Tenure in months → 15 × 12 = 180 months
Step 3: Apply the formula:

M = 15,000,000 × [ 0.0083(1 + 0.0083)180 ] / [ (1 + 0.0083)180 - 1 ]

Result: ≈ ₦161,000 monthly repayment

So, you’ll pay about ₦161,000 per month for 15 years, totaling ₦28.9 million (₦13.9 million in interest).

D. Use an Online Mortgage Calculator

You can simplify this process using any reliable online mortgage calculator. Many Nigerian banks and FMBN portals have free tools that estimate:

• Monthly repayment
• Total cost of the loan
• Interest-to-principal ratio

Tip: Adjust tenure and interest rate to find your comfort zone before applying.

Explore: Mortgage Interest Rates in Nigeria – Update

Summary: Understanding how to calculate your mortgage gives you control over your financial decisions. Always check your repayment capacity before committing to a loan — aim for payments that don’t exceed 35% of your monthly income.

🔗 Next: Mortgage Loan Without Collateral in Nigeria – What’s Possible?

Mortgage Loan Without Collateral in Nigeria

Many Nigerians search for “mortgage loan without collateral” — hoping to buy or build a home without risking assets or property documents. But here’s the truth: by definition, a mortgage loan is a secured loan, meaning the property itself serves as collateral.

However, there are still alternative options that allow home financing without traditional collateral. Let’s explore them below.

A. Understanding Collateral in Mortgages

When you take a mortgage loan, the lender temporarily holds the property title (such as the Certificate of Occupancy) until you finish repayment. So technically, you don’t need to present additional collateral — the house you’re buying already serves that role.

B. Mortgage Options That Require No Extra Collateral

1. NHF and FMBN Mortgages

Under the National Housing Fund (NHF) and Federal Mortgage Bank of Nigeria (FMBN) schemes, your property is automatically used as collateral. You don’t need separate land papers or other assets — the home itself secures the loan.

Benefits:

• 6% fixed interest rate
• Up to 30 years repayment period
• Requires only a steady income and an NHF contribution

See: FMBN Mortgage Loan – Full Guide

2. Developer-Assisted or Rent-to-Own Schemes

Some developers offer in-house financing or Rent-to-Own options, where you move in and pay gradually — without providing separate collateral.

How it works:

• You pay an initial deposit (e.g., 20%)
• The developer or partner bank finances the balance
• You repay monthly while living in the property

Example: Lagos State Rent-to-Own Program

Related: Mortgage for Low-Income Earners in Nigeria

3. Cooperative and Microfinance Housing Loans

Some cooperatives and microfinance institutions provide housing loans based on group guarantees or payroll deductions — not physical collateral.

They rely on:

• Your salary structure
• Cooperative membership
• Peer guarantees

Best for: Low- to middle-income earners seeking smaller housing loans (₦1–₅ million).

4. Salary-Backed Home Loans

Some banks and employers have partnerships where your salary account serves as a soft guarantee for home loans — no external collateral required.

Examples: Stanbic IBTC Salary Advance Mortgage, Access Bank Employee Home Loan Scheme.

Summary: While all traditional mortgages are technically “secured,” there are flexible alternatives that minimize or eliminate the need for separate collateral — especially NHF loans, developer-assisted plans, and cooperative housing finance.

🔗 Next: FMBN Mortgage Loan in Nigeria – Full Overview

FMBN Mortgage Loan in Nigeria

The Federal Mortgage Bank of Nigeria (FMBN) plays a central role in making housing affordable for Nigerians, especially low- and middle-income earners. Established to provide long-term credit facilities to mortgage institutions and individuals through the National Housing Fund (NHF), it remains the backbone of Nigeria’s housing finance ecosystem.

Here’s how the FMBN Mortgage Loan works — and how you can apply for it.

A. What Is an FMBN Mortgage Loan?

An FMBN Mortgage Loan is a government-supported loan that enables eligible Nigerians to buy, build, renovate, or complete their homes at a fixed interest rate of 6% per annum. The program helps reduce Nigeria’s housing deficit by offering long-term, low-cost financing through accredited Primary Mortgage Banks (PMBs).

B. Eligibility Criteria

To qualify for an FMBN mortgage loan, applicants must:

• Be a Nigerian citizen
• Be at least 18 years old
• Have a verifiable source of income
• Be a registered NHF contributor for at least 6 months
• Apply through a licensed Primary Mortgage Bank (PMB) accredited by FMBN

C. FMBN Loan Features

• Interest Rate: 6% fixed per annum
• Tenure: Up to 30 years
• Maximum Loan Amount: ₦15 million
• Equity / Down Payment: 10% (for ₦5m–₦15m range)
• Collateral: The property being financed
• Repayment Mode: Monthly or quarterly deductions

D. Documents Required

• Completed FMBN loan application form
• Proof of NHF contribution (minimum of 6 months)
• Payslips and bank statements
• Employer’s confirmation letter (for salaried workers)
• Property documents (e.g., Certificate of Occupancy, Deed of Assignment)
• Valuation report from a certified valuer

Learn more: Mortgage Loan Requirements in Nigeria

E. How to Apply for an FMBN Mortgage Loan

1. Register for the National Housing Fund (NHF) through your employer or directly at any FMBN branch.
2. Select an accredited PMB such as Abbey Mortgage Bank, Platinum Mortgage Bank, or Infinity Trust Mortgage Bank.
3. Submit your completed application with all required documents.
4. Wait for loan processing and property valuation.
5. Once approved, funds are disbursed directly to the property seller or developer, and repayment begins.

F. Other FMBN Housing Products

• Home Renovation Loan: Up to ₦1 million for property improvements.
• Rent-to-Own Scheme: Move into the home first and pay gradually until full ownership.
• Construction Loan: For building on personally owned land.

Summary: The FMBN Mortgage Loan remains Nigeria’s most affordable housing finance option — offering fixed low interest rates, flexible repayment terms, and a clear path to homeownership for all NHF contributors.

🔗 Next: NHF Loan vs Bank Mortgage Loan – Which Is Better?

NHF Loan vs Bank Mortgage Loan

Choosing between an NHF loan and a bank mortgage loan can be confusing — both help you buy or build a home, but they differ in interest rate, loan size, eligibility, and approval time. Below is a detailed comparison to help you choose the one that best fits your financial situation.

A. Overview

• Interest Rate: NHF – 6% per annum (fixed) | Bank Mortgage – 17–25% per annum
• Loan Tenure: NHF – Up to 30 years | Bank Mortgage – 10–20 years
• Maximum Amount: NHF – ₦15 million | Bank Mortgage – ₦50 million+
• Collateral: Property being financed (for both)
• Target Group: NHF – Low & middle-income earners | Bank Mortgage – High & upper-middle-income earners
• Processing Time: NHF – 4–12 weeks | Bank Mortgage – 2–4 weeks
• Down Payment: NHF – 10% | Bank Mortgage – 20–30%
• Eligibility: NHF – Registered contributor (min 6 months) | Bank Mortgage – Salary earner or verified business income
• Loan Source: NHF – Federal Mortgage Bank of Nigeria (FMBN) | Bank Mortgage – Commercial or Mortgage Bank

B. Pros & Cons

NHF Loan (via FMBN)

• Pros:
  • Very low fixed interest rate (6%)
  • Long repayment period (up to 30 years)
  • Ideal for first-time and low-income home buyers
• Cons:
  • Limited to ₦15 million maximum loan
  • Slower approval process (4–12 weeks)
  • Only available to NHF contributors

Bank Mortgage Loan

• Pros:
  • Higher loan amounts (₦50m+ possible)
  • Faster processing and flexible repayment options
  • Accessible to self-employed and non-NHF members
• Cons:
  • Higher interest rates (17–25%)
  • Shorter repayment period (10–20 years)
  • Requires a stronger income and credit proof

C. Which Should You Choose?

Choose an NHF/FMBN Loan if:

• You are a salaried worker contributing to NHF
• You want a lower interest rate and a longer repayment plan
• You’re buying your first home or earning a moderate income

Choose a Bank Mortgage Loan if:

• You need a higher loan amount or faster approval
• You’re self-employed or not contributing to NHF
• You can handle higher monthly repayments

Tip: Many borrowers start with an NHF loan to buy their first home, then later use a bank mortgage to upgrade or invest in property.

Summary: Both NHF and bank mortgage loans serve different financial goals. If affordability and stability matter most, choose the NHF/FMBN option. If speed, flexibility, and higher loan limits matter more, go for a bank mortgage loan.

🔗 Next: Conclusion – Choosing the Right Mortgage Loan in Nigeria