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HOW MORTGAGES WORK IN NIGERIA by Dennis Isong

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HOW MORTGAGES WORK IN NIGERIA by Dennis Isong 

HOW MORTGAGES WORK IN NIGERIA by Dennis Isong

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sahara Weekly Reports That Mortgages play a pivotal role in the real estate sector, allowing individuals and families to own homes without the need for substantial upfront payments. In Nigeria, as in many countries, mortgages are a common means of financing homeownership. This article aims to provide a comprehensive overview of how mortgages work in Nigeria, covering the key aspects, processes, and considerations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOW MORTGAGES WORK IN NIGERIA by Dennis Isong 

 

 

 

 

 

 

 

 

 

 

 

 

1. Types of Mortgages in Nigeria

In Nigeria, there are various types of mortgages available to suit different needs and financial situations. The most common types include:

a. Home Purchase Mortgage: This is the traditional form of mortgage used for buying a new home or property.

b. Home Equity Release Mortgage: This allows homeowners to access the equity in their property to meet other financial needs.

c. Construction Mortgage: Designed for those building their homes, this type of mortgage provides funds in stages during construction.

d. Refinancing Mortgage: Allows homeowners to replace an existing mortgage with a new one, often with better terms.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2. Mortgage Providers

Mortgages in Nigeria are typically provided by banks, mortgage banks, and other financial institutions. Some of the well-known mortgage banks in Nigeria include the Federal Mortgage Bank of Nigeria (FMBN), which focuses on affordable housing, and commercial banks like Zenith Bank, First Bank, and GTBank.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3. Eligibility Criteria

To qualify for a mortgage in Nigeria, individuals must meet certain eligibility criteria, which may include:

– Proof of regular income

– Good credit history

– Down payment capability

– Legal age (usually 18 years or older)

– Nigerian citizenship or legal residency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4. The Mortgage Application Process

The mortgage application process in Nigeria involves several steps:

a. Prequalification: Potential borrowers assess their financial status, calculate affordability, and choose a suitable mortgage type.

b. Documentation: Applicants provide necessary documents such as proof of income, identification, and property details.

c. Property Valuation: The lender evaluates the property’s value to determine the loan amount.

d. Credit Assessment: Lenders assess the borrower’s creditworthiness by reviewing credit reports and history.

e. Approval and Disbursement: Upon approval, the mortgage is disbursed, and the borrower takes ownership of the property.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5. Mortgage Terms and Conditions

Mortgages in Nigeria typically have terms ranging from 10 to 25 years. Interest rates can be fixed or variable, and the repayment structure can be monthly, quarterly, or annually.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6. Mortgage Insurance

Mortgage insurance is often required, especially for mortgages with smaller down payments. This insurance protects the lender in case the borrower defaults on the loan.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7. Repayment and Default

Borrowers must make regular payments to avoid default. Defaulting on a mortgage can result in the lender repossessing the property, so it’s essential to honor the repayment schedule.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8. Government Initiatives

The Nigerian government has introduced several initiatives to promote affordable housing and increase access to mortgages. The FMBN, for instance, offers the National Housing Fund (NHF) scheme, which provides affordable mortgage loans to contributors.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9. Tax Implications

It’s important for prospective homeowners in Nigeria to be aware of the tax implications associated with mortgages. Mortgage interest paid on a primary residence is often eligible for tax deductions, which can help reduce the overall cost of homeownership. Tax laws and regulations may vary, so consulting with a tax professional is advisable.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10. Benefits of Mortgages in Nigeria

Owning a home through a mortgage in Nigeria offers several advantages:

a. Asset Appreciation: Real estate in Nigeria generally appreciates over time, potentially increasing the value of your investment.

b. Forced Savings: Paying a mortgage every month encourages disciplined saving, as a portion of each payment goes toward building home equity.

c. Housing Security: Homeownership provides stability and security for you and your family.

d. Investment Opportunity: Owning property can open doors to real estate investment and rental income.

e. Access to Government Schemes: Many government initiatives and incentives are designed to make homeownership more accessible, particularly for low and middle-income earners.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11. Challenges and Risks

While mortgages offer numerous benefits, they also come with potential challenges and risks:

a. Interest Rate Fluctuations: Variable interest rates can lead to fluctuations in monthly payments, impacting borrowers’ budgets.

b. Economic Factors: Economic downturns can affect borrowers’ ability to make mortgage payments, leading to defaults.

c. Property Market Volatility: Real estate markets can be unpredictable, potentially affecting property values.

d. Legal and Documentation Complexities: Navigating the legal and documentation requirements of mortgages can be complex and time-consuming.

e. Default Consequences: Defaulting on a mortgage can result in foreclosure and the loss of the property.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12. Expert Advice

Before embarking on the mortgage application process in Nigeria, it’s advisable to seek expert advice. Consult with financial advisors, real estate professionals, and legal experts to ensure you make informed decisions that align with your financial goals and circumstances.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dennis Isong is a TOP REALTOR IN LAGOS.He Helps Nigerians in Diaspora to Own Property In Lagos Nigeria STRESS-FREE. For Questions WhatsApp/Call 2348164741041

 

 

 

 

 

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OTUNBA WASIU JAIYEOLA BAGS TASUED’S DOCTORATE DEGREE

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OTUNBA WASIU JAIYEOLA BAGS TASUED’S DOCTORATE DEGREE

 

In recognition of his impactful contributions to clothing and textile industry in Ogun state in particular and Nigeria in general, the Governing Council of Tai Solarin University of Education, ijagun is set to honour the Founder of Wessy Creations, Otunba Jaiyeola Wasiu, with the Doctor of Science, D.sc Ed (Honoris causa) in Textile and Clothing.

The letter of conferment of the award dated September 30, 2024 with reference number TASUED/REG.122/VOL.1/006 and signed by the Vice-Chancellor of the institution, Prof. Oluwole Banjo, indicated that: “The Award is in recognition of your passion for education, and numerous contributions to the advancement of human race in general.”

The letter reads further: “The University takes special recognition of your numerous professional achievements and community services, including your exemplary leadership roles in our Nation as an elder statesman whose modest achievements and accomplishments represent the idea of integrity and selflessness, which our University stand for.
“The University joins well-meaning Nigerians in celebrating your humble, worthy, and outstanding legacies in the service of humanity.
“We also congratulate you and your family on your many notable achievements in life”.

The conferment ceremony is slated for Thursday, 28th November, 2024 at the School Auditorium in Ijagun, Ijebu-Ode, Ogun State.

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Family Pleads With FG to save brother in South African prison

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Family Pleads With FG to save brother in South African prison

Family Pleads With FG to save brother in South African prison

 

The family of a Nigerian businessman, Olatunji Abdul, imprisoned in South Africa, has called on the Nigerian government and the Chairperson of the Nigerians in Diaspora Commission, Mrs Abike Dabiri-Erewa, to intervene and save his life urgently.

The family, at a press conference on Thursday at Ikeja, alleged that Olatunji, a businessman and humanitarian, who has been held in a South African prison since 2019, is a victim of false charges allegedly orchestrated by state agents and xenophobic business rivals and that he is facing imminent danger.

PUNCH Metro gathered that through a petition submitted by the founder of Zarephath Aid, Ben Abraham, an international criminal justice organisation, the family narrated the ordeal of the Osun State-born entrepreneur.

 

Abdul, who relocated to South Africa in 2009, established himself as a prominent figure in the hospitality and tourism sectors.

According to the family, as the founder and CEO of Hydro Club, a leading hospitality consultancy in Johannesburg, he provided employment opportunities for Nigerians and supported businesses, students, and tourists in the diaspora.

However, his family believes his success made him a target for xenophobic competitors and corrupt officials.

 

Olatunji’s brother, Sesan, revealed that in 2019, these forces allegedly initiated a scheme, called “#DestroyAbdul,” aimed at destroying his reputation and business ventures.

Sesan claimed that this led to his wrongful arrest, denial of bail, and coercion into providing false confessions.

“In 2020, Olatunji was convicted on charges of theft and sentenced to 15 years in prison, a sentence his supporters insist was based on fabricated evidence.’

“Despite being granted leave to appeal his sentence in November 2024, Abdul is said to be facing further challenges as his efforts to secure legal representation for his appeal have been thwarted.

 

“Several lawyers have reportedly withdrawn from his case due to threats and intimidation, leaving him to represent himself in court,” he said.

His family further stated that his situation is worsening, with fears of poisoning in prison and the confiscation of his laptop, which he needed for legal preparation.

The family, along with Zarephath Aid, appealed to the FG to act swiftly to prevent Olatunji’s death.

 

“If nothing is done, we risk losing a man who has brought pride to Nigeria and significantly contributed to the Nigerian diaspora.”

The petition reads. “Abdul is not a criminal; he is a victim of a malicious plot to destroy him.”

Olatunji’s physical and emotional health has reportedly deteriorated.

His family added that without intervention, his life remains in grave danger.

“This is not just about Abdul,” said Ben Abraham of Zarephath Aid. “It is about protecting Nigerians abroad who face unjust persecution despite their positive contributions.

 

“Abdul is an example of what Nigerians can achieve, and he deserves the protection of his country,” he said.

“Abdul is not just a businessman; he is a father, a son, and a role model for Nigerians in the diaspora. Nigeria must act now to bring him home,” the family stated.

 

 

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How Visiting US-based Nigerian bought nine drugs before death 

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How Visiting US-based Nigerian bought nine drugs before death 

How Visiting US-based Nigerian bought nine drugs before death

 

The Ogun State Police Command on Thursday said it found nine different drugs and medications in the hotel room of the visiting US-based 51-year-old Sunday Abidoye whose lifeless body was discovered at the Creestar Hotel room, GRA, Sagamu, on Wednesday.

The command’s spokesperson, SP Omolola Odutola, disclosed this in a statement on Thursday to confirm Abidoye’s death.

Odutola explained that the Chief Security Officer of the hotel, one Mr Oluwole, reported the incident regarding the discovery of the deceased customer to the police, five days after his arrival from the United States of America.

She said on receiving the report, a team of detectives visited the scene and on arrival, found the body of the deceased already placed inside a car outside the hotel, being prepared to be taken to the morgue by his family.

 

Odutola said that the deceased’s brother, Jimoh Godday, residing in Imota, Lagos State, informed the police team that his brother had arrived in Nigeria from the USA on Saturday, November 16, 2024.

 

She explained further that Godday said he had called at the hotel on Monday and knocked on Room 109, where his brother was staying, but got no response after which he requested a spare key from the manager to enter the room, where they discovered his brother’s lifeless body.

Odutola said, “Photos were taken, and various drugs and traditional medicines were recovered from the room.

 

“The centre of the bed was soaked with a liquid-like substance. A friend of the deceased, Ogunmonti Ogunwole, confirmed that he accompanied his friend, Sunday, to purchase nine different types of medication the previous day due to his complaints of illness.

“The body has since been evacuated to OOUTH morgue in Sagamu for an autopsy.

“No known cause of death yet, and the case will be transferred to the State Criminal Investigation Department for discreet investigation.”

 

 

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