03 Apr How to Buy House with Mortgage in Lagos, Abuja (TERMS & CONDITIONS)
Before you are eligible to buy a house with mortgage in Lagos or Abuja, firstly you need to understand what is mortgage and terms of mortgages in Nigeria.
A mortgage is simply a loan given to you to buy a house, a mortgage can only be use for home ownership. However, mortgage financing to buy a house in Lagos, Abuja etc is underfunded and underperforming.
Where can you obtain a mortgage in Lagos and Abuja
A mortgage loan can be given by a mortgage bank in Nigeria, which can be FMBN (Federal Mortgage Bank of Nigeria) or a commercial mortgage bank. Although, most commercial banks in Lagos and Abuja have mortgage arms, but they are hardly active.
As long as you have an account with a commercial bank, either GT Bank, First Bank, Access Bank etc, you can easily contact them about a mortgage. Yet, most Nigerians are not aware that these banks offer mortgage schemes and loans to buy houses.
Moreso, builders and developers who build estates and housing units in Lagos and Abuja find it very difficult to access mortgages.
The lack of adequate financing with low interest to develop mass apartments, to meet the rising housing demand in Lagos, Ibadan, Port-Harcourt, and Abuja, is one of the several reasons price of houses keeps skyrocketing.
Who is eligible to buy a house with mortgage in Lagos or Abuja
Nigerians with a source of income can apply for a mortgage to buy a house. Also, few commercial mortgages in Lagos and Abuja offer loans to Nigerians in diaspora too.
Registered Developers and builders with viable housing projects in Lagos and Abuja can apply for mortgage financing too.
The property or house you are intend to buy in Lagos or Abuja with mortgage must have a registered title i.e. C of O.
Since the house you’re buying with mortgage serves as collateral of the loan. The finance company ensures the document of the property is absolutely perfect.
In addition, your source of income must also be capable to repay the mortgage amount. Your bank statement or pay slip might be required to pre-qualify you, just to be sure you can conveniently repay.
Prerequisites of buying a house with mortgage in Lagos and Abuja
Source of income: you must be employed to buy a house with mortgage in Nigeria, you can also be self-employed or run a personal business. However, retired personnels are not eligible i.e. you can’t repay a mortgage with pension.
Age: you can apply for a mortgage financing to buy a house in Lagos or Abuja, as long as you are above 18, and not above 60years.
Monthly income/salary: your monthly income is very key in the mortgage pre-qualification process. The amount you earn monthly as shown in your statement or payslip, will determine the mortgage loan amount you’re eligible for.
Moreso, if your monthly income shows you are eligible for N5m and the property is N12m. You can still buy the house, but you will need to raise the N7m difference without mortgage help.
Property document: property title is very important too, Nigeria mortgage banks won’t finance a property without perfect titles.
Any imperfection in the documents of the house you want to buy in Lagos or Abuja, means you have to find another house to buy with mortgage.
Location: some mortgages might be specific to certain locations in Lagos and Abuja only. Although, you can buy a house with NHF mortgage in all states in Nigeria.
Some rent to own schemes in Nigeria are specific to certain locations only, while some banks still finance for houses in Ogun, Ibadan, Port-harcourt, and Enugu also.
Properties you can buy with mortgage in Lagos or Abuja
Most mortgages in Nigeria would only finance to buy a house not to build, except in rare occasions or you’re a developer. Moreso, mortgages don’t finance offplan (houses under construction), except also in special cases.
If you’re employed outside Nigeria, you are not eligible for NHF mortgage, but you can apply for diaspora mortgage by some mortgage banks in Lagos.
How to know the mortgage amount you're eligible for
It’s simple to know the mortgage amount you are eligible for, based on your monthly income and age. You can try some online mortgage calculators which is freely available online for that.
Nevertheless, you can still buy a house in Lagos or Abuja above the mortgage amount you’re eligible for. As long as you can raise the offset amount yourself.
No Comments