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Obtaining Mortgage in Nigeria
Obtaining a mortgage loan in Nigeria could occur in two ways and these channels are useful in promoting affordable housing chain in Nigeria.
While the government regulate both the conventional and federal government mortgage scheme, the modes of mortgage creation are almost the same. Mortgages loans are open to everyone as long as they are able to provide the required documents as a part of the legal and equitable loan creation.
Mortgages loans that work in Nigeria
The circumstances that require mortgage loans in Nigeria are many. An individual could have the need to buy a full home, acquire land, construct, renovate or refinance an existing mortgage. These are the channels to get mortgage loans in Nigeria.
Federal government mortgage
The FG offers long-term credit facilities to mortgage institutions like Federal Mortgage Bank of Nigeria FMBN to facilitate mortgages. The scheme gives nine per cent yearly interest rate with tenors of up to 30 years.
Nigeria also has a cooperative house scheme where different people can come together to acquire a mortgage loan.
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Conventional loans
The mortgage loans available in Nigeria are mostly offered by banks. They possess unique features tailored to an individual’s goals and financial status.
Borrowers with large assets, stable income and valuable employment history often have a better chance at getting conventional mortgages.
Banks prioritise people who have valid income source and assets. More so, properties in Lagos are usually benched on N70m and those in Properties in Abuja, Enugu or Port Harcourt, N40m in some banks.
Steps to acquire mortgage in Nigeria
Most home loans would amount of up to 80% of property value and come with a tenor of up to 20 years. Banks also have fair conditions on repayments terms.
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The legal and equitable modes of loan creation apply both for the government and conventional mortgages.
An individual receives a loan after going through a verification process that proves they have a stable income source.
If the bank is the provider of the loan, it is preferable to establish a profile of the property before approaching the bank for a mortgage loan.
Mortgage terms often restrict mortgagors from transferring loans meant for the purchase of homes to the purchase of commercial properties.
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