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Getting a mortgage in Nigeria in September 2025 is possible with interest rates ranging from 9.75% for government-backed programs to 28% for commercial banks.
The Federal Mortgage Bank of Nigeria and Primary Mortgage Banks remain active lenders, offering repayment terms up to 30 years for government schemes and 10-20 years for commercial loans. Down payments typically range from 10% for government programs to 30% for commercial banks, with foreigners often requiring 40-60%.
If you want to go deeper, you can check our pack of documents related to the real estate market in Nigeria, based on reliable facts and data, not opinions or rumors.
Nigeria's mortgage market offers two distinct paths: government-backed schemes at 9.75% fixed rates with minimal down payments, and commercial bank loans ranging from 15-28% with higher equity requirements.
The Central Bank of Nigeria's policy rate of 27.5% keeps commercial mortgage rates elevated, making government programs the most affordable option for Nigerian homebuyers.
| Loan Type | Interest Rate | Down Payment | Tenure | Monthly Payment (₦20M) |
|---|---|---|---|---|
| Government-backed (NHF/MREIF) | 9.75% fixed | 10% minimum | 20-30 years | ₦188,000-₦205,000 |
| Commercial Bank Standard | 15-20% | 20-30% | 10-20 years | ₦320,000-₦386,000 |
| Commercial Bank Premium | 21-28% | 25-30% | 10-15 years | ₦400,000-₦520,000 |
| Foreign Buyers | 18-28% | 40-60% | 10-15 years | ₦380,000-₦520,000 |
What are the current mortgage interest rates in Nigeria right now?
Mortgage interest rates in Nigeria range from 9.75% to 28% as of September 2025, depending on the type of lender and loan program.
Government-backed programs through the National Housing Fund (NHF) and the Mortgage Refinancing and Enhancement Investment Fund (MREIF) offer the lowest rates at 9.75% fixed for up to 30 years.
Commercial banks and Primary Mortgage Banks typically charge between 15% and 28% per annum, with most rates being variable and tied to the Central Bank of Nigeria's monetary policy rate of 27.5%. The Federal Mortgage Bank of Nigeria serves as the primary coordinator for government-backed mortgage schemes.
These rates reflect the high interest rate environment in Nigeria, where the central bank maintains restrictive monetary policy to combat inflation.
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Which banks or mortgage lenders in Nigeria are actively offering home loans today?
The Federal Mortgage Bank of Nigeria (FMBN) remains the primary government-backed mortgage lender, coordinating with multiple Primary Mortgage Banks across the country.
Active Primary Mortgage Banks include Abbey, Infinity Trust, AG Mortgage, Platinum, Imperial Homes, FHA, Homebase, LivingTrust, Gateway, and Union Bank, all accredited to offer government-backed mortgage programs.
Commercial banks like Access Bank, Stanbic IBTC, and Ecobank continue to offer mortgage products, though at higher interest rates than government schemes. These lenders focus primarily on high-income earners and expatriates who can meet the stricter down payment and income requirements.
The mortgage market remains concentrated among these established players, with new entrants finding it challenging to compete given the regulatory requirements and capital intensity of mortgage lending in Nigeria.
What is the minimum and maximum interest rate range currently advertised by Nigerian mortgage institutions?
The minimum advertised rate in Nigeria's mortgage market is 9.75% through government-backed NHF and MREIF programs, representing the most affordable mortgage option available.
Maximum rates reach up to 28% from commercial banks, particularly for borrowers with higher risk profiles or those seeking larger loan amounts.
Most commercial banks advertise rates between 15% and 25%, with the exact rate depending on the borrower's creditworthiness, down payment amount, and relationship with the bank. Primary Mortgage Banks typically offer rates in the 18% to 24% range for their standard products.
This wide spread reflects the dual nature of Nigeria's mortgage market, with heavily subsidized government programs competing alongside market-rate commercial products.
How much down payment do Nigerian banks usually require for a mortgage at today's rates?
Down payment requirements vary significantly between government-backed programs and commercial lenders in Nigeria's current mortgage market.
| Lender Type | Nigerian Citizens | Foreign Buyers | Special Programs |
|---|---|---|---|
| Government-backed (NHF/MREIF) | 10% minimum | Not typically available | Can use pension funds |
| Commercial Banks - Standard | 20-30% | 40-50% | Higher for luxury properties |
| Primary Mortgage Banks | 25-35% | 50-60% | Lower for bank employees |
| Diaspora Programs | 15-25% | 30-40% | USD denominated options |
| Luxury Properties (₦50M+) | 30-40% | 60-70% | Additional guarantees required |
What is the typical loan-to-value ratio Nigerian lenders allow for residential properties?
Most Nigerian lenders currently permit loan-to-value ratios of 70% to 80% for residential mortgages, with government-backed programs offering the higher end of this range.
Commercial banks typically cap LTV at 70% for standard mortgage products, though some may extend to 75% for borrowers with strong credit profiles and stable income sources.
Government-backed NHF and MREIF programs allow up to 80% LTV, making them more accessible for buyers with limited savings. Foreign buyers often face lower LTV ratios of 50% to 60%, reflecting the additional risk perceived by lenders.
The LTV ratio directly impacts the down payment requirement, with higher ratios meaning lower upfront costs for borrowers.
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How long are the repayment terms usually available for mortgages in Nigeria today?
Repayment terms in Nigeria's mortgage market range from 10 to 30 years, with government-backed programs offering the longest tenure options.
Government-backed NHF and MREIF loans provide repayment terms up to 30 years, allowing for lower monthly payments and improved affordability for borrowers.
Commercial banks typically offer 10 to 20 years for home purchase loans, with most standard products falling in the 15-year range. Refinancing and equity release products often have shorter terms of 10 to 15 years.
The longer terms available through government programs make them particularly attractive for first-time homebuyers and middle-income earners who need to minimize monthly payment obligations.
What is the average monthly repayment on a ₦20 million mortgage at current interest rates?
Monthly repayments on a ₦20 million mortgage vary dramatically based on the interest rate and loan term selected by the borrower.
For a government-backed loan at 9.75% over 30 years, the monthly payment would be approximately ₦188,000, making it the most affordable option for qualified borrowers.
Commercial bank loans at 18% over 20 years would require monthly payments of approximately ₦380,000, while loans at the higher end of 25% would push payments to around ₦450,000 monthly.
These calculations demonstrate why government-backed programs are crucial for making homeownership accessible to middle-income Nigerians, as commercial rates can result in payments that are double those of subsidized programs.
Are there government-backed mortgage schemes like the National Housing Fund still available, and at what rate?
The National Housing Fund (NHF) remains active and continues to offer mortgages at subsidized rates through the Federal Mortgage Bank of Nigeria and accredited Primary Mortgage Banks.
NHF loans are available at rates ranging from 6% to 9.75% fixed, depending on the specific program and borrower qualifications, with terms extending up to 30 years.
The newer Mortgage Refinancing and Enhancement Investment Fund (MREIF) launched in 2025 offers loans at 9.75% fixed rate with down payments as low as 10% and terms up to 20 years. Both programs allow borrowers to use pension account contributions to fund down payments.
These government schemes represent the most significant mortgage subsidy programs in Africa and are designed to make homeownership accessible to middle-income Nigerian workers.
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We did some research and made this infographic to help you quickly compare rental yields of the major cities in Nigeria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the extra fees and charges that come with getting a mortgage in Nigeria?
Mortgage-related fees and charges in Nigeria typically add 3% to 7% to the total loan amount, significantly impacting the upfront cost of homeownership.
1. Processing and administration fees: 1% to 3% of the loan amount 2. Legal and valuation fees: 1% to 2% of the property value 3. Life and property insurance: 0.5% to 2% annually 4. Registration and stamp duties: varies by state 5. Title verification and survey fees: ₦200,000 to ₦500,000Government-backed loans often have reduced fees compared to commercial products, though borrowers still face legal and insurance requirements.
These additional costs mean that securing a ₦20 million mortgage could involve upfront fees of ₦600,000 to ₦1.4 million beyond the down payment requirement.
Do Nigerian banks offer fixed-rate mortgages, or are most of them variable and linked to central bank rates?
The vast majority of commercial bank mortgages in Nigeria are variable rate products tied to the Central Bank of Nigeria's monetary policy rate, currently at 27.5%.
Government-backed NHF and MREIF programs offer true fixed-rate mortgages at 9.75%, providing payment stability over the entire loan term.
Commercial banks rarely offer long-term fixed-rate products due to the volatile interest rate environment and high inflation in Nigeria. When fixed rates are available from commercial lenders, they typically carry significant premiums over variable rate options.
This structure means that borrowers with commercial mortgages face payment uncertainty as central bank rates change, while those accessing government programs enjoy predictable monthly payments.
How have mortgage interest rates in Nigeria changed over the last 12 months?
Nigerian mortgage rates reached peak levels in 2024 when the Central Bank of Nigeria raised the monetary policy rate to 27.5%, pushing commercial mortgage rates to their current maximum of 28%.
Government intervention in early 2025 introduced the MREIF program at 9.75% fixed rates, providing relief for qualified borrowers while commercial rates remained elevated.
Commercial bank mortgage rates have remained relatively stable since Q1 2025, with most lenders maintaining rates between 20% and 28% despite some stabilization in the broader economic environment.
The introduction of government-backed programs has created a two-tier market where subsidized rates coexist with market rates that reflect Nigeria's challenging monetary policy environment.
What is the Central Bank of Nigeria's current monetary policy rate, and how does it directly affect mortgage affordability?
The Central Bank of Nigeria maintains its monetary policy rate at 27.5% as of September 2025, unchanged since July 2025, representing one of the highest policy rates globally.
This elevated MPR directly impacts commercial mortgage affordability by serving as the benchmark for variable rate mortgages, pushing most commercial loans to 20% or higher.
The high policy rate reflects the CBN's aggressive stance against inflation, but it severely constrains mortgage market development by making commercial home loans unaffordable for most middle-income Nigerians.
Government-backed mortgage programs serve as the primary buffer against this monetary policy impact, offering fixed rates that are disconnected from the central bank's restrictive policy stance.
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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.
Nigeria's mortgage market in September 2025 offers distinct opportunities through government-backed programs at 9.75% fixed rates, making homeownership accessible despite high commercial bank rates reaching 28%.
The key to successful property financing in Nigeria lies in qualifying for government schemes like NHF and MREIF, which provide dramatically lower costs compared to commercial alternatives.
Sources
- National Housing Fund - Federal Government Opens Single Digit Mortgage Loans
- Finance in Africa - Nigeria Lending Rate Trends
- ThisDay Live - MREIF Homeownership Program
- TheAfricanvestor - Nigeria Real Estate Investment Guide
- Federal Mortgage Bank of Nigeria - Primary Mortgage Banks List
- Access Bank - Mortgage Loan FAQ
- Federal Ministry of Housing - National Housing Policy
- Trading Economics - Nigeria Interest Rate