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How to Own Properties through Mortgage in Nigeria (updated)

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. 

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. 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.

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.


What is a Mortgage?

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. 

Some requirements to get a mortgage in Nigeria include: 

  • Your monthly income
  • Your monthly expenditure 
  • Your existing debt profile  
  • The value of the property you want financed
  • Investigate if a mortgage is something you can afford

Obtaining mortgage loans with high performance rates is possible in cities such as Lagos and Abuja, but you may face some challenges.

Here is a process for getting mortgage facilities. 

Save a deposit:  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.

Look for house buying schemes: The National Housing Fund was created primarily to provide financing solutions to scheme contributors.

Ability to repay the loan: Because many mortgages are long-term commitments, the financing institution must know that you can repay your loan over time. Subtract your monthly costs from your present salary to see how much you can save each month towards the mortgage. 

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Start looking at properties: 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.

Obtain a mortgage loan: 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. Proceed to signing an agreement and go get your property. 

Qualified Mortgage Banks in Nigeria

Central Bank of Nigeria has accredited over 30 mortgage banks. These banks are able to disburse NHF loans and perform advisory services.

  • Abbey Building Society
  • Aso Savings & Loans
  • Brent Mortgage Bank
  • FBN Mortgages
  • Lagos Building and Investment Company
  • Mutual Alliance Savings and Loans
  • New Prudential Building Society
  • Nigerian Police Mortgage Bank
  • Trustbond Mortgage Bank
  • United Mortgage

Other accredited Mortgages banks 

See also: How to Access Federal Mortgage Loans in Nigeria

How to own a home through Federal Mortgage Bank

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’s Board of Directors.

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. Properties would be accessible immediately for candidates who have had their finances accessed and are able to fully pay.

According to the bank, non-interest housing allows Nigerians own their homes with a mortgage, but without engaging in an interest-bearing transaction.

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.

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Nigerians who contribute to the National Housing Fund (NHF) Scheme are eligible for the no-interest rent-to-own product. It applies to both FMBN and non-FMBN funded properties with a maximum purchase price of N15 million.

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.

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. 


  1. One passport sized photograph (with white background), name and signature behind
  2. NHF contribution number
  3. Proof of identity (valid driver’s license, National ID Card, international passport, staff ID or Tax Payee Card)
  4. Pay slip for the last 3 months preceding the application.
  5. A certified personal bank statement for the last six months.
  6. A copy of the letter of confirmation from the employer.
  7. A letter of undertaking to deduct the rental payment from the beneficiary’s salary and allowances and remit to FMBN’s TSA account
  8. Bank Verification Number (BVN)

To apply

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.

The applicant will then complete the form, stating his preferred property and attaching all required documents.

The applicant will send the completed application form to the FMBN state office for processing.

The National Housing Fund 

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.

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The initiative’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.

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. 

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.

Eligibility criteria

To be eligible to get a National Housing Fund (NHF) loan, you must meet the following criteria:

  1. Any Nigerian above the age of 18.
  2. The applicant must have been a contributor to the National Housing Fund for a minimum period of six months.
  3. The applicant must have satisfactory evidence of regular flow of income to guarantee loan repayment.

How to get the National Housing Fund (NHF) loan

Follow these steps to get the National Housing Fund (NHF) loan

  1. 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)
  2. Get an application form. Application forms for NHF loans are available from the MLO
  3. Complete the form
  4. Submit all required documents.

The PMB will be the one to forward your request to the Federal Mortgage Bank Of Nigeria and revert to you.

Final thoughts.

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. 

One Comment

  1. Please, I need a kind of mortgage loan that I can use to complete the ongoing of my house project.

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