Mortgage (home loan)

A mortgage has two parts: the loan, which you repay with interest over many years, and the security, a legal charge over the property that lets the lender sell it if you default.

How a Nigerian mortgage usually works:

• You choose a property and agree a price.
• You apply to a lender: a primary mortgage bank, a commercial bank, an employer scheme or a government programme.
• You pay an equity contribution, your own share of the price.
• The lender values the property and checks its title. Lenders want good title, typically a C of O or a consented, registered deed.
• A deed of mortgage is signed. Where the property is under a statutory right of occupancy, the mortgage itself needs the governor's consent and registration.
• You repay monthly; on the final payment the mortgage is released.

Why few Nigerians use mortgages. Commercial mortgage rates follow high bank lending rates, terms are shorter than in many countries, and many properties lack the clean title lenders need. So most buyers pay outright, or in instalments to a developer.

Cheaper routes.

• National Housing Fund (NHF): contributors can borrow at a low fixed rate through accredited primary mortgage banks, managed by the Federal Mortgage Bank of Nigeria.
• State schemes: Lagos HOMS and similar programmes in other states offer mortgages or rent-to-own on state-built homes.
• Employer and cooperative schemes.

• Lagos: Lagos HOMS offers state homes to qualifying residents; mortgage consent goes through the Lands Bureau.
• Abuja (FCT): FMBN and many primary mortgage banks are based here; consent through AGIS.
• Other states: NHF loans are available nationwide through accredited lenders; many states run their own housing schemes.