How To Own A Home In Nigeria Through A Mortgage
Due to the heavy inflation rate, lack of accountability, government policies, etc., the average Nigerian dream of owning a home is slimmer by the day.
Compared to the homeownership in the United States and the United Kingdom at 72% and 78% respectively, homeownership in Nigeria is 10%. The high construction cost of properties has made it quite difficult for low and middle-class families to purchase a home.
Because of the large funds provided, a mortgage is applied by both real estate developers and investors.
In this post, we’d be discussing how to own a home in Nigeria through a mortgage.
Some requirements to get a mortgage in Nigeria:
- Existing debt profile
- Monthly income
- The value of the property you want to be financed
- Monthly expenditure
- Most importantly, find out if a mortgage is something you can afford
Also read: First-Time Home Buyer Mistakes + Life-Saving Tips To Guide You.
The process of getting a mortgage to own a home in Nigeria
1. Save a deposit
2. Check for house buying schemes
3. The ability to repay the loan will be put into consideration
4. Look at properties within your budget
5. Obtain a mortgage loan
We have a good number of qualified mortgage banks in Nigeria accredited by the Central Bank to disburse National Housing Fund (NHF) loans.
The NHF is a scheme for Nigerian workers to enable them access flexible financing to purchase a home. The scheme was set up by the federal government and funds are disbursed by the Bank (FMBN).
Important documents required to apply for an NHF loan:
1. A completed application form
2. Photocopy of title documents
3. The current valuation report on proposed property one is buying.
4. Tax clearance certificate for 3 years
5. Evidence of NHF participation with a minimum of 6 months
6. Copy of pay-slips for the previous 3 months
7. Equity contribution
It’s important to know the repayment method for NHF, the loans are repaid monthly from the salaries or income of the beneficiaries.
Are you interested in owing a home in Nigeria? Talk to our investment advisors at ChaviD Properties: