How To Get Mortgage In Nigeria

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How to Get a Mortgage in Nigeria: A Comprehensive Guide

Are you looking to purchase a new home in Nigeria? If so, you may be considering taking out a mortgage to finance the purchase. However, the mortgage process in Nigeria can be complex and overwhelming, especially if you are a first-time homebuyer. In this article, we will provide you with a comprehensive guide on how to get a mortgage in Nigeria, so you can make the right decision for your financial situation and purchase your dream home.

Understanding Mortgages in Nigeria

A mortgage is a loan that is used to purchase a home or real estate property. The loan is usually repaid over a period of 15-30 years, with interest added on top of the principal amount borrowed. Mortgages are typically issued by banks, mortgage companies, or other financial institutions.

In Nigeria, there are two main types of mortgages: conventional mortgages and Islamic mortgages. Conventional mortgages are the more common type, where the borrower pays interest on the loan. Islamic mortgages, on the other hand, are structured in a way that complies with Islamic law, which prohibits the payment or receipt of interest.

Steps to Getting a Mortgage in Nigeria

Getting a mortgage in Nigeria can be a challenging process, but it can be made easier if you follow these steps:

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Step 1: Determine your Budget

The first step in getting a mortgage in Nigeria is to determine your budget. You need to know how much you can afford to borrow and how much you can afford to pay back each month. This will help you determine the type of mortgage you need and the amount of down payment you will need to make.

Step 2: Choose a Lender

Once you have determined your budget, the next step is to choose a lender. There are many banks and mortgage companies in Nigeria that offer mortgages, so you will need to do your research to find the best one for your needs. Look for a lender that offers competitive interest rates and terms that fit your budget.

Step 3: Gather Documentation

To apply for a mortgage in Nigeria, you will need to gather documentation such as your ID, proof of income, and bank statements. This documentation will be used to determine your eligibility for the loan.

Step 4: Submit an Application

Once you have gathered all the necessary documentation, you can submit an application for a mortgage. The application will be reviewed by the lender, who will determine whether or not you are eligible for the loan.

Step 5: Get Pre-Approved

If your application is approved, you will be pre-approved for the mortgage. This means that the lender has determined that you are eligible for the loan, and you can start looking for a home to purchase.

Step 6: Find a Home

Once you are pre-approved for the mortgage, the next step is to find a home that fits your budget. You can work with a real estate agent to find homes that meet your criteria, or you can search online for homes that are for sale.

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Step 7: Close the Mortgage

Once you have found a home that you wish to purchase, you can close the mortgage. This involves signing the necessary paperwork and making the down payment on the loan. Once the mortgage is closed, you will be the proud owner of a new home.

Mortgage Requirements in Nigeria

To be eligible for a mortgage in Nigeria, you will need to meet certain requirements. These requirements may vary depending on the lender, but generally include:

  • A down payment of at least 20% of the purchase price
  • Proof of income, such as pay stubs or tax returns
  • A good credit score
  • A stable employment history
  • A debt-to-income ratio of no more than 43%

Benefits of Getting a Mortgage in Nigeria

There are many benefits to getting a mortgage in Nigeria, including:

  • Owning your own home
  • Building equity over time
  • Predictable monthly payments
  • Tax benefits
  • The ability to customize your home to your liking


Getting a mortgage in Nigeria can be a complex process, but it is worth it if you are looking to purchase a home. By following the steps outlined in this article, you can make the process easier and ensure that you get the best loan for your financial situation. Remember to do your research, gather all the necessary documentation, and work with a lender that offers competitive rates and terms.


  1. What is the minimum down payment for a mortgage in Nigeria?

    • The minimum down payment for a mortgage in Nigeria is usually 20% of the purchase price.
  2. How long does the mortgage process take in Nigeria?

    • The mortgage process can take anywhere from a few weeks to several months, depending on the lender and the complexity of the loan.
  3. Can I get a mortgage if I have bad credit?

    • It may be more difficult to get a mortgage with bad credit, but it is not impossible. You may need to work with a lender that specializes in bad credit mortgages and be prepared to pay a higher interest rate.
  4. Can I get a mortgage for a commercial property in Nigeria?

    • Yes, there are mortgages available for commercial properties in Nigeria. The requirements and terms may be different than those for residential properties.
  5. What is the difference between a conventional mortgage and an Islamic mortgage?

    • A conventional mortgage requires the payment of interest on the loan, while an Islamic mortgage is structured in a way that complies with Islamic law, which prohibits the payment or receipt of interest.
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