There are several pathways to buying a house with a mortgage in Nigeria in 2025. The first option is the traditional bank mortgage which has a double digit interest rate starting at 28% while the second pathway is through the National Housing Fund which requires a subscription and operation of a NHF contribution account. The third pathway which has received much acceptance is the Ministry of Finance Real Estate Investment Fund (MREIF).
Buying a house with a mortgage in Nigeria has always been a less desirable path due to the high interest rate of 28% and above offered by commercial banks. However, with this new 2025 update, the mortgage option is now an attractive option.
Prior to now, most home potentials would only approach purchasing a property with the cash down approach. The best option for someone who didn’t have the cash to pay off in lump sum was to adopt an installment payment plan. The best most people got was a 12 month payment plan for finished properties and 24 month payment plan for offplan payments.
The question now is what has changed. The federal government has introduced a single digit interest mortgage loan tagged the Ministry of Finance Real Estate Investment Fund (MREIF). This new initiative is a 9.75% interest rate mortgage loan.
Who can buy a house with Mortgage in Nigeria
The new mortgage initiative is available for both Nigerians in Nigeria and Nigerians in Diaspora. It is also available for employees and self employed individuals.
The criteria for being qualified is age and earning capabilities. This also affects the amount you are entitled to.
What type of house can you buy with a mortgage in Nigeria
You can buy any type of house with a mortgage in any location in Nigeria. Common property types in Nigeria are:
Flats and apartments:
Detached houses:
2 bedroom detached duplex
3 bedroom detached duplex
4 bedroom detached duplex
5 bedroom detached duplex
6+ bedroom detached duplex
Semi Detached Duplex
2 bedroom semi detached duplex
3 bedroom semi detached duplex
4 bedroom semi detached duplex
5 bedroom semi detached duplex
6+ bedroom semi detached duplex
Terraced Duplex / Townhouses
2 bedroom terraced duplex
3 bedroom terraced duplex
4 bedroom terraced duplex
5 bedroom terraced duplex
6+ bedroom terraced duplex
Mortgage can also be used to acquire:
Affordable homes for sale
Distress properties for sale
Ready to move in properties for sale.
So it does not matter whether you are applying to buy a finished or newly built property or a yet to be finished property. It also does not matter whether you are buying from the primary market (directly from the developer) or from the secondary market (from a subsequent owner).
Procedure to buying a house with a Mortgage in Nigeria
- Step 1: Find the desired property: In order to apply for a mortgage, you may want to first search for the property you wish to buy. This process includes speaking with an experienced real estate agency company like Vala Homes. However Vala Homes only cover top locations in Lagos including Victoria Island, Lekki, Ikoyi, Ikeja, Ajah, Ibeju-Lekki and Epe. If your desired property is not within these areas then you may contact other agents who offer homes for sale within the desired locations you prefer.
- Step 2: Get an offer letter and a copy of the property title document: Once you have found the desired property and have concluded inspections and negotiations with the seller, you would then request for an offer letter that states the information of the property as well as the price. Attached to the offer letter would be a copy of the title document. Both the offer letter and the title documents would be taken to the bank for processing.
- Assessment & Due Diligence: Upon submission of the documents to the bank, the bank would then conduct an assessment of your financial status in order to determine how much you are eligible to get. Also, the bank would conduct a thorough assessment and due diligence of the property to be sure there is no scam or fraud involved.
- Step 3: Approval and Funding: Once the bank has done all its assessment and findings, it would then approve the mortgage application and fund your account with the mortgage amount. The down payment expected from you must have been shown to be available and must be in your bank account to be funded. Upon funding your account, the bank would then authorize the total purchase price to be paid to the property seller.
Documents You Would Need To Process The Mortgage Application
- A valid offer of sale from the property seller
- A copy of the title documents to the property
- Last 3 months’ payslips
- Last 6 months’ bank statements with evidence of salary payment
- A copy of your valid photo identification (National ID, international passport or driver’s license)
- Letter of introduction from your employer stating your salary and confirmation status
- A copy of your company (work) ID card
- The valuation report from any of the bank’s approved property valuers
- Satisfactory search report
Funding Options When Considering buying a house with a Mortgage in Nigeria
If you are looking to buy a house with a Mortgage in Nigeria, you are required to have a minimum of 20% down payment for the house while the mortgage would be responsible for the rest.
Regardless of how much down payment you are making you can always get funds from the following sources:
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Personal savings
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RSA Contribution
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Monthly Salary
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Income from a business or investment
In what way can vala homes assist me to buy a house with a mortgage in Nigeria
Vala Homes is a single real estate agency and on this website we have affordable, premium, offplan and secondary sale properties that you can choose from. Once you find a property you like, you can contact us for inspection, to find out more about the property and to also get any information or document required by the financial institution (your bank).
Please note: Vala Homes does not provide mortgage loans or any other credit facility. We are only a property marketing company and we can recommend the right properties for you which you can then apply for a mortgage to buy. Only banks and financial institutions provide mortgage and other credit facilities.
Frequently Asked Questions About Buying A House With A Mortgage in Nigeria
- Can I buy a land with a mortgage?
No you cannot buy land with a mortgage. Only houses are eligible to be purchased with a mortgage.
- Are there specific houses that can be bought with a mortgage?
There are no specific houses. All houses qualify for a mortgage as long as they have genuine title.
- How much loan can I access in total?
The MREIF loan allows you to access a total of 100 million. However, a pre-qualification assessment has to be done based on your age and monthly net income to determine how much you are eligible to.
- What if my 20% and the entire Mreif mortgage is not able to cover for the purchase of the property?
You can apply for the traditional bank mortgage loan to balance up. However, the traditional bank loan has a higher interest rate which is between 28% – 35% depending on the bank. If you are married your spouse if eligible may also take up a mortgage towards contribution for the property purchase price.
- How long do I have to pay the mortgage?
Maximum loan tenure is 20 years. However, your income and age affects how much you can have access to and how long you would be required to pay.
- What is the minimum amount I can borrow?
The minimum amount you can have access to is N3,000,000 (Three Million Naira)
- How much salary must I be earning monthly to be able to have access to a mortgage
To qualify for a mortgage loan under the MREIF, you must be earning a minimum of N200,000 (Two Hundred Thousand Naira) monthly salary.
- Can I pay back my mortgage loan before the expiration of the tenure
Yes you can pay back your entire mortgage before the expiration of the tenure.