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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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Nigerian Born US based Music Star, Tunde Success, to launch new album ‘Cornerstone’

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Nigerian Born US based Music Star, Tunde Success, to launch new album ‘Cornerstone’

The City of Philadelphia would be set agog on 17th May, 2025, as the creative and Nigerian born music star, Tunde Success is launching new album that day.

According to the information made available to us, the launching of ‘Cornerstone’ the new effort of handsome and dark Tunde Success is taking place at Philly in suites, 4444 City Avenue Philadelphia P A 19131.

The epoch making event is proudly sponsored by the Star Lager beer. To make the event a memorable one, Mama D Catering would supplied hot Amala on the spot, while Amazing Grace Catering is going to tantalize the event with jolly rice and shawarma.

The red carpet interview would be anchored by 360 Delight Creation.

While speaking about the event, Tunde Success, a multiple awards winning singer, however, promised to make the day, a moment of joy, entertainment and plenty faajis for all the guests. He also enjoined all his fans to come out enmass to support him.

Nigerian Born US based Music Star, Tunde Success, to launch new album 'Cornerstone'

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Alaketu-Designate Visits Ooni of Ife, Secures Royal Blessing for Kingship

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Alaketu-Designate Visits Ooni of Ife, Secures Royal Blessing for Kingship

Alaketu-Designate Visits Ooni of Ife, Secures Royal Blessing for Kingship

The Alaketu-designate of Ketu Land in Epe Local Government Area of Lagos State, Prince Adekoya Babajide Adefowora, on Wednesday, paid a historic visit to the Ooni of Ife, Arole Oduduwa Ooni Adeyeye Enitan Ogunwusi, Ojaja II, at his palace in Ile-Ife.

The visit, which is a significant step in his journey to the throne, was marked by the royal father’s blessings and prayers for a peaceful and prosperous reign.

This comes after the formal presentation of Prince Adefowora, who hails from the Ateshimara Ruling House, by the traditional authorities of Ketu Land on Tuesday, February 18, 2025.

His visit underscores the deep-rooted ancestral ties between Ketu Land and Ile-Ife, reaffirming the sacred traditions that bind Yoruba monarchs to their spiritual and historical source.

Prince Adefowora was accompanied to the Ooni’s palace by prominent members of his family, high-ranking chiefs, and kingmakers from Ketu Land, all of whom played key roles in his selection and endorsement as the next Alaketu.

Speaking at the palace, Prince Adefowora described his visit as a homecoming and an essential part of his ascension process.
have come home to pay homage to my father, the Ooni of Ife. My deep love for my people motivated me to accept the call to the throne of Ketu. This journey is not just about me; it is about upholding our rich heritage and leading my people towards greater progress,” he said.

Addressing controversies surrounding his ascension, he condemned attempts by some individuals to manipulate the process with fraudulent documents.

I am aware of certain fraudulent documents being submitted by some individuals to the authorities. I use this opportunity to urge them to desist from such illegal activities. The Supreme Court has already affirmed my right to the throne, and I call on the government to thoroughly investigate this matter. It is crucial for everyone to respect the rule of law and uphold due process,” he stated.

On the delay in filling the Alaketu throne after the demise of the previous ruler, Prince Adefowora explained that Yoruba tradition necessitates a period of transition.

“In Yoruba tradition, when a king joins his ancestors, a period of interregnum is observed before selecting a successor. This allows the community time to reflect, ensure stability, and make the right choice for the future. My people made their choice long ago, and today, they have formally presented me to our ancestral father, the Ooni of Ife. I am honored to have received Kabiyesi’s blessings,” he added.

In his response, the Ooni of Ife congratulated Prince Adefowora on his journey to the throne and prayed for a successful reign filled with peace, wisdom, and development for Ketu Land.

You are about to embark on a sacred duty, one that requires wisdom, patience, and commitment to the welfare of your people. I pray that your reign brings prosperity, unity, and growth to Ketu Land. May the ancestors guide you, and may your leadership be marked by justice and progress,” the Ooni prayed.

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Unity in Generosity : Prophet Genesis Unites Faiths at Ibafo Ramadan Lecture (See Video) – Alhaji Arems

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Unity in Generosity : Prophet Genesis Unites Faiths at Ibafo Ramadan Lecture (See Video) – Alhaji Arems

 

On March 12, 2025, during a spirited Ramadan lecture in Ibafo, Prophet Genesis once again demonstrated that faith and generosity know no boundaries. In a moment captured on video that has since resonated with audiences far and wide, the Prophet called an elderly woman to the stage. With warmth and conviction, he declared, “Mama, I’m the one people have blessed with this cash – open up your bag, and you can as well get extra nylon bags – take it all.” He went on to reassure her that his personal driver and security team would ensure she got home safely, eliminating any worries about carrying the money.

The heartfelt gesture was part of a lecture themed “Truthfulness brings success,” a mantra that clearly underpins Prophet Genesis’ approach to ministry. Notably, he reiterated that his annual Ramadan gatherings are unique in that he never collects money. According to the Prophet, God has made it clear that accepting money on these occasions would sever his divine connection—a conviction that has guided his practice for years.

What makes this event particularly striking is its interfaith significance. Held during Ramadan—a time when millions of Muslims around the world are fasting—the lecture underscored Prophet Genesis’ commitment to inclusivity. His actions sent a powerful message that genuine compassion and kindness transcend religious labels, uniting communities in shared celebration and mutual respect.

In a world often divided by differences, Prophet Genesis’ demonstration of unconditional generosity and his call for truthfulness serve as a reminder of the unifying power of faith and goodwill.

Watch Video Here : https://vm.tiktok.com/ZMBY9RPus/

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