Last updated on August 14th, 2023 at 03:47 pm
Just before we delve into the list of Mortgage Lenders in Nigeria, shall we define what the term is? Mortgage Institutions may be referred to as banks that offer mortgage loans to people for various real estate reasons. This is borne out of the inability of people to purchase houses off of their salaries. Ideally, it might take a while before this completed if people saved to buy or build a house. Mortgage banks thus step into the scene to save the day. They can loan out real estate investment capital and accept payment in instalments.
A mortgage refers to a loan where in real estate or property is used as collateral. Essentially, the borrower enters into an agreement with the lender, receiving the cash up front and repaying over an agreed duration. In most cases, the lender is usually a bank.
Mortgage loans are vital to the financial inclusion of the underbanked, unbanked, and individuals without a good credit history.
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After satisfying the minimum qualification of being in paid employment and above the age of 21, you need to perform the following:
The Central Bank of Nigeria has licensed 35 primary mortgage lenders in Nigeria. They include:
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The National Housing Fund (NHF) is a scheme organised by the federal government of Nigeria. It is open to all Nigerians in paid employment and above the age of 21, offering them low-interest, government-funded loans.
Members of this scheme are mandated to contribute 2.5% of their monthly salary to the fund through the Mortgage Bank of Nigeria. Essentially, partaking members could initially receive up to N5 million NHF fund, which has now been increased to N15 million. Additionally, the borrowed sum has a maximum tenor of 30 years at a 6% interest rate.
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