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Securing property financing in Lagos as a non-resident has become increasingly accessible as Nigerian banks recognize the growing demand from foreign investors and diaspora buyers.
As of September 2025, several major banks actively provide mortgages to non-residents, with loan amounts ranging from ₦10 million to ₦70 million and down payment requirements typically between 20% and 50% of the property value. Interest rates for foreign buyers generally range between 16% and 20% per annum, with repayment terms spanning 10 to 20 years depending on the lender and borrower profile.
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Non-residents can secure property financing in Lagos through major banks like GTBank, Zenith Bank, First Bank, and UBA, with loan amounts up to ₦70 million and interest rates between 16-20% annually.
Foreign buyers must provide substantial documentation including income proof, valid visas, and property title documents, while accepting leasehold ownership rights rather than freehold due to Nigerian land laws.
| Financing Aspect | Requirements/Details | Typical Range/Amount |
|---|---|---|
| Property Types | Completed residential and commercial properties in approved zones | Apartments, houses, offices in Victoria Island, Lekki, Ikoyi |
| Loan Amount | 50-80% of property value | ₦10 million - ₦70 million |
| Down Payment | Required upfront payment | 20% - 50% of property price |
| Interest Rate | Annual percentage rate for 2025 | 16% - 20% per annum |
| Repayment Term | Loan duration | 10 - 20 years |
| Processing Time | Approval and disbursement timeline | 2 - 4 months |
| Additional Costs | Legal fees, taxes, and processing charges | 10% - 20% of property value |
What types of properties in Lagos are eligible for non-resident financing?
Non-residents can secure financing for completed residential and commercial properties in Lagos, but banks strictly prohibit lending for undeveloped land purchases.
Residential properties eligible for financing include apartments, detached houses, semi-detached houses, and terraced homes located in bank-approved areas such as Victoria Island, Lekki, Ikoyi, and select mainland zones like Ikeja.
Commercial properties that qualify for non-resident financing include retail spaces and offices, particularly those situated in prime business districts like Victoria Island and Ikeja where rental yields and capital appreciation potential remain strong.
Banks require that all financed properties must be completed structures with proper title documentation, as they will not approve loans for off-plan developments or properties under construction due to the higher risk profile associated with such investments.
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What are the current minimum and maximum loan amounts available for foreigners in Lagos?
As of September 2025, Lagos banks typically offer non-resident property loans starting from a minimum of ₦10 million for the most affordable eligible properties.
Maximum loan amounts vary significantly between institutions, with First Bank offering up to ₦50 million while UBA extends loans up to ₦70 million for qualified non-resident borrowers.
Most banks structure their lending based on a loan-to-value ratio of 50% to 80% of the property's appraised value, meaning the actual loan amount depends heavily on the specific property being purchased and the borrower's financial profile.
Higher loan amounts are generally reserved for borrowers with substantial foreign income, excellent credit history, and properties located in prime areas where the bank's security interest is well-protected.
What down payment percentage do non-residents need for Lagos property purchases?
Non-residents purchasing property in Lagos typically need to provide a down payment ranging from 20% to 50% of the property's purchase price, depending on the specific bank and risk assessment.
Conservative lenders like some traditional banks may require up to 50% down payment from foreign buyers to mitigate their exposure to currency and political risks associated with non-resident lending.
More competitive banks such as GTBank and Zenith Bank often accept 20% to 30% down payments from well-qualified non-residents who can demonstrate stable foreign income and strong financial credentials.
The exact down payment requirement also depends on factors such as the property location, borrower's income level, employment status, and the bank's current risk appetite for foreign lending at the time of application.
Which Lagos banks actively provide mortgages to non-residents?
Several major Nigerian banks actively provide mortgage financing to non-residents, with Guaranty Trust Bank (GTBank), Zenith Bank, First Bank, and United Bank for Africa (UBA) leading the market in foreign buyer lending.
| Bank Name | Maximum Loan Amount | Typical Down Payment |
|---|---|---|
| Guaranty Trust Bank (GTBank) | ₦60 million | 20% - 30% |
| Zenith Bank | ₦65 million | 25% - 35% |
| First Bank of Nigeria | ₦50 million | 30% - 40% |
| United Bank for Africa (UBA) | ₦70 million | 20% - 50% |
| Access Bank | ₦55 million | 25% - 40% |
| Fidelity Bank | ₦45 million | 30% - 45% |
What interest rates and repayment terms are offered to foreign buyers in 2025?
Interest rates for non-resident property financing in Lagos currently range between 16% and 20% per annum as of September 2025, reflecting the Central Bank of Nigeria's monetary policy stance and banks' risk pricing for foreign borrowers.
Repayment terms typically span 15 to 20 years for most lenders, though some banks like UBA limit non-resident loans to a maximum of 10 years to reduce their long-term exposure to foreign exchange and political risks.
Banks offer both fixed and variable rate options, with fixed rates providing payment certainty but typically starting at the higher end of the interest rate range, while variable rates may fluctuate based on Central Bank policy changes.
The specific interest rate offered depends on factors including the borrower's credit profile, income stability, down payment amount, and the bank's assessment of the property's location and marketability.
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What eligibility criteria do Lagos lenders apply to non-residents?
Lagos banks require non-residents to hold valid residence permits or visas, demonstrate stable foreign or local income, and provide comprehensive financial documentation to qualify for property financing.
Minimum income requirements vary by bank but typically start around $3,000 to $5,000 monthly for foreign income earners, while borrowers with local Nigerian employment may qualify with lower income thresholds if they can provide salary domiciliation letters.
Banks also assess debt-to-income ratios, requiring that total monthly debt payments including the proposed mortgage not exceed 40% to 50% of the borrower's gross monthly income depending on the institution's risk guidelines.
Age restrictions typically require borrowers to be between 25 and 55 years old at the time of loan origination, with the loan term structured so that repayment concludes before the borrower reaches 65 years of age.
Additional criteria include employment stability (minimum 2 years with current employer), clean credit history, and demonstrated ability to contribute the required down payment from legitimate sources.
What documents must non-residents provide to secure Lagos property financing?
Non-residents applying for Lagos property financing must provide extensive documentation including valid international passport, current visa or residence permit, and comprehensive income verification from their home country or Nigeria.
- Identity and Legal Status: International passport, valid Nigerian visa or residence permit, and passport photographs
- Income Documentation: Recent salary slips (6 months), employment contract or letter, bank statements (6-12 months), and tax returns if self-employed
- Property Documentation: Property offer letter, title documents, approved building plan, and property valuation report
- Financial Proof: Evidence of down payment funds, offshore bank statements, and letter of irrevocable salary domiciliation if locally employed
- Legal Requirements: Tax clearance certificates, tenement receipts for existing properties, and sworn affidavits as required by specific banks
Are foreign income and credit history accepted by Lagos lenders?
Most Lagos banks now accept foreign income proof and international credit history from non-residents, but require proper authentication through notarization, apostilles, or embassy certification.
Income verification from overseas employers typically requires direct communication between the bank and the employer, along with notarized employment letters and salary confirmation documents translated into English if originally in other languages.
Credit history from major international credit bureaus may be considered, but banks often require additional local references or guarantors to supplement foreign credit reports, particularly for borrowers from countries with limited credit reporting relationships with Nigeria.
Verification processes can extend the approval timeline by several weeks, as banks may need to contact overseas banks directly or engage third-party verification services to confirm the authenticity of foreign financial documents.
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What restrictions exist on property types and locations for foreign financing?
Lagos banks restrict non-resident financing to completed properties with clear titles located in bank-approved areas, excluding undeveloped land and properties in certain high-risk or underdeveloped neighborhoods.
Approved locations typically include prime areas such as Victoria Island, Ikoyi, Lekki Phase 1, Banana Island, and select mainland areas like Ikeja GRA and Magodo, where property values remain stable and marketability is assured.
Banks generally exclude properties in developing areas like Ibeju-Lekki (except established estates), remote mainland locations, and any property without proper Certificate of Occupancy or Governor's Consent documentation.
Commercial properties must be located in established business districts with proven rental demand, while residential properties in gated estates or developments with proven track records receive preference from most lenders.
How long does mortgage approval take for non-residents in Lagos?
The complete mortgage approval and disbursement process for non-residents typically takes 2 to 4 months from initial application to fund disbursement, significantly longer than local borrower timelines.
Initial application review and preliminary approval usually requires 3 to 6 weeks, during which banks verify income documentation, conduct credit checks, and assess the borrower's eligibility against their non-resident lending criteria.
Property valuation and title verification add another 2 to 4 weeks to the timeline, as banks must conduct thorough due diligence on the property's legal status, market value, and ensure clear ownership transfer capabilities.
Final approval and documentation typically require an additional 2 to 3 weeks, followed by fund disbursement which occurs after completion of legal documentation and Governor's Consent processing, if required.
What legal protections do foreign buyers have when financing Lagos property?
Foreign buyers in Lagos can only acquire leasehold interests rather than freehold ownership due to the Nigerian Land Use Act, typically receiving 99-year lease terms with renewable options.
Legal protections are governed by the Certificate of Occupancy and Governor's Consent requirements, which provide statutory recognition of the buyer's leasehold rights and ensure enforceable ownership under Nigerian law.
Mortgage agreements include standard lender protections such as property insurance requirements, title insurance options, and legal charge registration that secures the bank's interest while protecting the borrower's equity position.
Foreign buyers must ensure proper registration of their leasehold interest with the Lagos State Land Registry and obtain Governor's Consent for property transfers to maintain legal protection and future marketability of their investment.
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What additional costs should non-residents budget for Lagos property financing?
Non-residents should budget for total additional costs ranging from 10% to 20% of the property purchase price, covering legal fees, taxes, and various administrative charges associated with property acquisition and mortgage processing.
| Cost Category | Percentage of Property Value | Description |
|---|---|---|
| Legal Fees | 5% | Lawyer fees for title verification and transaction completion |
| Agency Fees | 1% - 2% | Real estate agent commission |
| Governor's Consent | 1.5% - 8% | State government approval for property transfer |
| Registration Fees | 2% - 5% | Property registration and perfection charges |
| Stamp Duty | 0.5% - 2% | Government tax on property documents |
| Mortgage Processing | 1% - 2% | Bank arrangement and processing fees |
| Insurance & Misc. | 0.5% - 1% | Property insurance and other charges |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Non-resident property financing in Lagos has become increasingly accessible through major banks, though borrowers must navigate complex documentation requirements and accept leasehold ownership rather than freehold title.
Success in securing Lagos property financing depends on thorough preparation of financial documents, realistic expectations about costs and timelines, and working with experienced local legal and real estate professionals.
Sources
- TheAfricanVestor - Nigeria Real Estate for Foreigners
- Lagos Nigeria Guide - Buying Property as a Foreigner
- Propsult - Tips for Buying Property in Lagos from Abroad
- First Bank Nigeria - Personal Home Loans
- UBA Group - Mortgage Loans
- Shalom Park Nigeria - Diaspora Funding Guide
- Ramos Real Estate - Buying Lagos Property from Abroad
- TheAfricanVestor - What to Know Before Buying Land in Nigeria