What Is Mortgage: A mortgage is a loan provided by a bank or mortgage institution that enables an individual to purchase a property. Mortgages allow home buyers to pay for houses in installments. Despite that, the problem is they are not readily available to home buyers. An analysis of how mortgage works are that a potential buyer borrows money from a mortgage institution or bank, the lender uses the money to fund some or all the cost of buying the home. The lender will pay the amount borrowed and interest payment at an agreed time. Before any mortgage institution in Nigeria can lend you money, they have to carry out their due diligence to confirm the authenticity of the property.
Types of Mortgages In Nigeria
Mortgages in Nigeria is attributed to real estate and it can be classified into two
- Residential Mortgages: The loan provided by a mortgage institution allows a potential homeowner to buy a flat, house, or land to build a property. On the other hand,
- Commercial Mortgages: This is the loan provided by a mortgage institution to business owners to secure commercial real estate such as; warehouses, offices, factories, retail outlets, e.t.c
The good thing about mortgages is that they help the citizens of a country to reduce their housing needs which is one of the major needs in the Maslow hierarchy of needs.
Mortgages can be gotten in some selected places in Nigeria such as Abuja, Lagos. The mortgage rate in Nigeria is between 20- 27% if you deal with regular banks but ranges between 6-9% when borrowing from National Housing Fund.
Who Are Those Eligible For Mortgage In Nigeria
Any working-class person that earns a good salary is eligible for a mortgage. Below are the requirements to take a mortgage loan;
Requirements To Secure Mortgage In Nigeria
The following are required to secure a mortgage in Nigeria
- Copies of document of the property you want to purchase
- Introduction letter from your employer or company
- Bank account statement for the last six to twelve months.
- Produce a paycheck for the last three-four months to show that you have a good steady income.
- The lender will produce a valuation report which shows the value of the property. This is done by a property surveyor that will look at its location and state to set value.
List of Mortgage Institutions to consider
The Central Bank of Nigeria accredited the following list as primary mortgage banks, Below are the list of mortgage institutions to consider
- Abbey Building Society
- Ag Homes Savings & Loans
- Akwa Savings & Loans
- Aso Saving & Loans
- Brent Mortgage Bank
- Centage Savings & Loans
- City Code Savings & Loans
- Coop Saving & Loans
- Delta Building Society
- Fbn Mortgages
- Fha Homes Savings & Loans
- First Generation Homes (Savings & Loans)
- Gateway Savings & Loans
- Global Trust Savings & Loans
- Haggai Savings And Loans
- Homebase Mortgage
- Imperial Homes Mortgage Bank
- Infinity Trust Mortgage Bank
- Jigawa Savings & Loans
- Jubilee-Life Savings & Loans
- Kebbi State Home Savings & Loans
- Lagos Building & Investment Company
- Mayfresh Savings & Loans
- Mgsl Mortgage Bank
- Mutual Alliance Saving & Loans
- New Prudential Building Society
- Nigeria Police Mortgage Bank
- Omoluabi Savings & Loans
- Platinum Savings & Loans
- Refuge Home Savings & Loans
- Resort Savings & Loans
- Safe Trust Savings & Loans
- Stb Building Society
- Trustbond Mortgage Bank
- United Mortgage
Do you need help with National Housing Fund Mortgages (NHF), reach out to Thinkmint Nigeria.