Home Loans in Nigeria explained

Last updated on June 4th, 2021 at 11:00 am

Having a home that you call yours is basically one of the most beautiful things in life. It is everybody’s dream. For many, they see it as freedom from paying rent year after year. Also, some see it as a place to spread their tentacles. Whatever way you view it, the fact is, having a home to call yours is a beautiful thing.

However, as much as many want a home of their own, only a few can pay for building a house. This might be due to some financial constraints, or some other important needs that come in the way. Well, you need not worry, you too can own a house. There are several financial institutions in Nigeria giving out home loans. This article covers all you need to know about home loans and how to get them.

What are home loans?

Basically, home loans are a specified amount of money you borrow from a financial organization. However, this is at a certain interest rate, and you have to repay it with interest in Easy Monthly Installment over a period. Home loan repayment tenor can vary anywhere between 10-25 years, depending on the nature of the loan and lender.

Types of Home Loans:

There are various types of home loans that lenders design to suit your needs. These are:

• Home Purchase Loans: As the name implies, you can take this loan to buy a house of your choice.
• Construction Loans: This Loan is very useful to cater for your home building expenses.
• Land Purchase Loan: As the name implies, this loan comes in handy to purchase land for constructing your own house.
• Home Improvement: This loan comes in handy for renovating or improving your house
• Home Repair: Basically, they design this loan to cater for the expense of your home repair or reconstruction.

Where can I get home loans in Nigeria?

As we have mentioned earlier, there are several financial organizations offering home loans in Nigeria. However, it is important to note that the lending requirements vary from one lender to the other. In no particular order, here are some organizations giving out home loans in Nigeria.

• First Bank of Nigeria
• United Bank of Africa (UBA)
• Access Bank Plc.
• StanbicIBTC Bank
• GTBank

First Bank of Nigeria (Personal Home Loan)

The First Bank of Nigeria has designed this loan to provide a financial boost to support your building project. Therefore, you can take this loan to buy your first home, construction, or simply for renovation purposes

Features:

• This loan option is only available to people with a verified source of steady income
• Maximum tenor is 20 years
• The property you are financing must be for residential and not commercial purposes
• They require a minimum down payment below 30%, depending on the location
• Documentation processes are simple and straightforward.

To learn more about FBN Home loans, you can visit their website on www.firstbanknigeria.com/personal-banking/loans-and-mortgages/personal-home-loan 

 

United Bank of Africa (Home or Land Acquisition)

The United Bank of Nigeria is one of the top guns in the Nigeria Banking industry. They design this loan option for land purchases or to construct a residential property in Nigeria. The term of repayment is considerate, structured, and convenient to suit your home purchase needs.

  Features:

• The loan is only available to employees of reputable organizations in the public or private sector
• Your salary must have been paid through UBA for at least 3 months
• This loan option is only available to UBA customers

To learn more about UBA loans you can visit their official website on www.ubagroup.com

Access Bank

Access Bank Home loans basically provide financial support for you to acquire ready properties or properties under construction.       

Features:

• This loan option is available to salary earners and business entrepreneurs.
• Up to 10 years tenor
• The loan offers Asset protection & Credit life insurance
• Access Bank Home Loan is available for properties in Lagos, Abuja, and Port Harcourt.
• Minimum of 30% equity contribution

Visit their official website on www.accessbankplc.com to learn more.

StanbicIBTC Bank:

This another Home Loan option by StanbicIBTC. They design this product offering for customers who wish to buy their first home or those looking to upgrade.

Features:

• You can access this loan offer if you have a net monthly income of #200,000
• The minimum loan amount is #3,000,000
• Loan tenor is 20 years
• Flexible repayment option.

Visit their official website on www.stanbicibtcbank.com to learn more.

GTBank Plc.

GTB is one of the oldest and strongest banks in Nigeria. They design this loan to generally provide credit facilities to their customers to enable them to own a house in selected cities in Nigeria.

Features:

• Minimum of 5 million, and Maximum of #150 million for low density residential locations in Lagos and Abuja.
• Loan Tenor is 20 years
• Flexible Repayment options.
• Minimum of #5 million and Maximum of #50 million for medium density residential locations in Lagos and Abuja

Learn more about this loan offering via www.gtbank.com

Conclusion

A home loan is specifically designed to enable you to own the home of your choice with no hassle. You can therefore leverage any of the financial institutions we have listed in this article. Also, you can visit their official websites to learn more.

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