{"id":12639,"date":"2024-05-27T01:26:42","date_gmt":"2024-05-27T00:26:42","guid":{"rendered":"https:\/\/www.propertypro.ng\/blog\/?p=12639"},"modified":"2024-06-03T08:16:44","modified_gmt":"2024-06-03T07:16:44","slug":"owning-a-home-in-nigeria-through-mortgage","status":"publish","type":"post","link":"https:\/\/propertypro.ng\/blog\/owning-a-home-in-nigeria-through-mortgage\/","title":{"rendered":"How to Own Properties through Mortgage in Nigeria (updated)"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Nigerian dream of owning a property appears to be fading by the day, and this could be attributed to political policies, high inflation, a lack of accessibility, and alarming interest rates from lenders. Another way to reinstall this dream is by knowing how to own properties through other legitimate means like mortgage in Nigeria.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the Central Bank of Nigeria, home ownership in Nigeria is 10%, compared to 72% in the United States and 78% in the United Kingdom. <\/span><span style=\"font-weight: 400;\">Due to the high cost of construction materials, the rise in land prices, and the high cost of finance, purchasing has become more difficult for middle- and low-income households.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Mortgages have traditionally been used by real estate developers and investors due to the massive amounts of money available and the long-term repayment schedules they enable.<\/span><\/p>\n<h2><b>What is a Mortgage?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A Mortgage (sum of money) is the transfer of ownership of a property (home) as security to a lender (Mortgage Bank), under the express or implied condition that the property (home) will be re-transferred to the borrower (home-owner), upon repayment of the mortgage.\u00a0<\/span><\/p>\n<h2><b>Some requirements to get a mortgage in Nigeria include:\u00a0<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your monthly income<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your monthly expenditure\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your existing debt profile\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The value of the property you want financed<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Investigate if a mortgage is something you can afford<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Obtaining mortgage loans with high performance rates is possible in cities such as Lagos and Abuja, but you may face some challenges.<\/span><\/p>\n<h2><b>Here is a process for getting mortgage facilities.\u00a0<\/b><\/h2>\n<p><b>Save a deposit:\u00a0 <\/b><span style=\"font-weight: 400;\">When you decide to buy a house, you will need to put down a deposit. Which is a particular percentage is required by both the property owners and the lending institution.<\/span><\/p>\n<p><b>Look for house buying schemes: <\/b><span style=\"font-weight: 400;\">The National Housing Fund was created primarily to provide financing solutions to scheme contributors.<\/span><\/p>\n<p><b>Ability to repay the loan: <\/b><span style=\"font-weight: 400;\">Because many mortgages are long-term commitments, the financing institution must know that you can repay your loan over time.\u00a0<\/span><span style=\"font-weight: 400;\">Subtract your monthly costs from your present salary to see how much you can save each month towards the mortgage.\u00a0<\/span><\/p>\n<p><b>Start looking at properties: <\/b><span style=\"font-weight: 400;\">Not all homes are sold or can be purchased with a mortgage, which is why you should look for properties that are easily available and can be purchased with mortgage facilities.<\/span><\/p>\n<p><b>Obtain a mortgage loan: <\/b><span style=\"font-weight: 400;\">You have a mortgage-eligible property, have placed your deposit, and can demonstrate to your banker that you can commit to a long-term payment contract.\u00a0<\/span><span style=\"font-weight: 400;\">Proceed to signing an agreement and go get your property.\u00a0<\/span><\/p>\n<h2>Qualified Mortgage Banks in Nigeria<\/h2>\n<p><span style=\"font-weight: 400;\">Central Bank of Nigeria has accredited over 30 mortgage banks. These banks are able to disburse NHF loans and perform advisory services.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Abbey Building Society<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Aso Savings &amp; Loans<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Brent Mortgage Bank<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">FBN Mortgages<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lagos Building and Investment Company<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mutual Alliance Savings and Loans<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">New Prudential Building Society<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Nigerian Police Mortgage Bank<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Trustbond Mortgage Bank<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">United Mortgage<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Other accredited <\/span><a href=\"https:\/\/www.cbn.gov.ng\/Supervision\/Inst-PMI.asp?NAV=1\"><span style=\"font-weight: 400;\">Mortgages banks\u00a0<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">See also: <\/span><a href=\"https:\/\/www.propertypro.ng\/blog\/how-to-access-federal-mortgage-loans-in-nigeria\/\"><span style=\"font-weight: 400;\">How to Access Federal Mortgage Loans in Nigeria<\/span><\/a><\/p>\n<h2><b>How to own a home through Federal Mortgage Bank<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Federal Mortgage Bank of Nigeria (FMBN) has released additional information regarding its rent-to-own mortgage home. In contrast to the previous 7% annual interest rate, the bank stated that it introduced non-interest housing to boost financial inclusion in the country. The revelation followed the consent of the bank&#8217;s Board of Directors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To apply for housing, interested parties need to go to any bank branch nationwide and fill out an application for free. They must be National Housing Fund contributors. <\/span><span style=\"font-weight: 400;\">Properties would be accessible immediately for candidates who have had their finances accessed and are able to fully pay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the bank, non-interest housing allows Nigerians own their homes with a mortgage, but without engaging in an interest-bearing transaction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The bank keeps ownership of the property under the agreement until the financing term expires or the recipient decides to acquire the property at any moment during the lease duration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nigerians who contribute to the National Housing Fund (NHF) Scheme are eligible for the no-interest rent-to-own product. <\/span><span style=\"font-weight: 400;\">It applies to both FMBN and non-FMBN funded properties with a maximum purchase price of N15 million.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Beneficiaries can pay to own the property in monthly\/quarterly\/annual rental instalments over a 30-year period based on their age and years of service.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the bank, it now has around 3,190 housing units available for rent-to-own in various areas across the country. Some of them are located in about 17 states across the country, also including the Federal Capital Territory.\u00a0<\/span><\/p>\n<h2><b>Requirements<\/b><\/h2>\n<ol>\n<li><span style=\"font-weight: 400;\"> One passport sized photograph (with white background), name and signature behind<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> NHF contribution number<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Proof of identity (valid driver\u2019s license, National ID Card, international passport, staff ID or Tax Payee Card)<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Pay slip for the last 3 months preceding the application.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> A certified personal bank statement for the last six months.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> A copy of the letter of confirmation from the employer.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> A letter of undertaking to deduct the rental payment from the beneficiary\u2019s salary and allowances and remit to FMBN\u2019s TSA account<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Bank Verification Number (BVN)<\/span><\/li>\n<\/ol>\n<h2><b>To apply<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The interested subscriber should go to any of the FMBN state offices around the country to arrange an inspection and visit the available FMBN houses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The applicant will then complete the form, stating his preferred property and attaching all required documents.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The applicant will send the completed application form to the FMBN state office for processing.<\/span><\/p>\n<h2><b>The National Housing Fund\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The National Housing Fund (NHF) is a fund formed by the Federal Government of Nigeria in 1992 to mobilize funds from Commercial and Merchant Banks, Insurance Companies, Nigerian Workers, and the Federal Government in order to give soft loans to its contributors. All Nigerians in paid or self-employment are eligible to contribute to and profit from the scheme. The Federal Mortgage Bank of Nigeria is in charge of the scheme.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The initiative&#8217;s goal is to enable low-income employees who cannot afford housing to own homes by contributing a portion of their monthly earnings to the scheme.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A Nigerian worker who wants to participate in the scheme and benefit from it will deposit 2.5% of their basic salary\/income to the fund. Commercial and merchant banks must invest 10% of their portfolio of loans and advances.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Insurance companies are required to spend 20% of non-life and 40% of life money in the housing sector, with 50% of these funds invested directly. The federal government is also anticipated to contribute financially to the fund.<\/span><\/p>\n<h2><b>Eligibility criteria<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">To be eligible to get a National Housing Fund (NHF) loan, you must meet the following criteria:<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\">Any Nigerian above the age of 18.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The applicant must have been a contributor to the National Housing Fund for a minimum period of six months.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The applicant must have satisfactory evidence of regular flow of income to guarantee loan repayment.<\/span><\/li>\n<\/ol>\n<h2><b>How to get the National Housing Fund (NHF) loan<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Follow these steps to get the <\/span><a href=\"https:\/\/www.fmbn.gov.ng\/National%20Housing%20Fund\/nhf.html\"><span style=\"font-weight: 400;\">National Housing Fund<\/span><\/a><span style=\"font-weight: 400;\"> (NHF) loan<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> Visit a duly accredited mortgage loan originator. The first step is to visit a duly accredited Mortgage Loan Originator (MLO), also known as a primary mortgage bank (PMB)<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Get an application form. Application forms for NHF loans are available from the MLO<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Complete the form<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Submit all required documents.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The PMB will be the one to forward your request to the Federal Mortgage Bank Of Nigeria and revert to you.<\/span><\/p>\n<h2>Final thoughts.<\/h2>\n<p><span style=\"font-weight: 400;\">Owning properties is a costly investment. However, if you register and contribute to the National Housing Fund Scheme, you can acquire mortgage loans with single-digit interest rates and a maximum of 10 percent equity to own your home over a 30-year period.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"The Nigerian dream of owning a property appears to be fading by the day, and this could be&hellip;\n","protected":false},"author":31,"featured_media":12640,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_custom_appearance":"","csco_disable_excerpt_posts_layout":false,"csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":""},"categories":[30,17],"tags":[],"class_list":{"0":"post-12639","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ask-us","8":"category-featured","9":"cs-entry","10":"cs-video-wrap"},"_links":{"self":[{"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/posts\/12639","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/comments?post=12639"}],"version-history":[{"count":3,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/posts\/12639\/revisions"}],"predecessor-version":[{"id":13359,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/posts\/12639\/revisions\/13359"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/media\/12640"}],"wp:attachment":[{"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/media?parent=12639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/categories?post=12639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/tags?post=12639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}