Mortgage banks in Nigeria allow you to get loans you can use to buy a house, refurbish or renovate a home, or use an existing property as collateral to take a loan, and for a property under construction.
An agreement to secure a loan from a mortgage bank in Nigeria by an applicant is called a mortgage.
This agreement will have a given period of time that stipulates when the applicant will pay back the loan to the mortgage bank.
When a mortgage loan isn’t repaid back, the mortgage bank has the right to do as they please with the property.
But if the mortgage loan is paid back, the mortgage ceases to exist. Mortgages allow people with low access to banking services or not so good credit to get loans.
List of Mortgage banks in Nigeria.
A list of mortgage banks in Nigeria:
How do Mortgages bank in Nigeria Work
A mortgage like every loan comes with an interest rate. Interest rates for mortgages banks in Nigeria range between 15-25%.
There are three main primary mortgage institutions in Nigeria you can get a mortgage from.
Apart from the interest, a potential mortgage applicant will have to pay some equity for a mortgage bank in Nigeria to finance the loan.
Equity is a certain percentage of the total amount that is used as a down payment to secure a loan. This ranges between 30% and 70% of the total cost of the property.
The mortgage also comes with a set duration for repayment known as tenure. This is the amount of time required to pay back the mortgage loan. The maximum tenure for mortgage banks in Nigeria is 20 years.
The mortgage banks in Nigeria is overseen by the CBN and Federal Mortgage Bank of Nigeria