How to Get a Mortgage Loan in Nigeria (Dec 2025): Requirements & Best Banks

In December 2025, interest in mortgage loans in Nigeria has hit an all-time high. With inflation stabilizing around 14.45% and the Naira showing signs of recovery, many Nigerians are rushing to lock in property assets before the new year. Whether you are a salary earner in Lagos, a business owner in Abuja, or living in the diaspora, securing a mortgage is the most realistic pathway to becoming a landlord.

However, the process can be intimidating. Questions about interest rates, equity contributions, and the best banks to approach are common. This comprehensive guide will walk you through exactly how to get a mortgage loan in Nigeria, the strict requirements you must meet, and the top banks offering the best deals right now.

Mortgage Requirements in Nigeria (2025 Checklist)

Before applying, you must ensure you meet the “4-Pillars” of mortgage eligibility. Nigerian banks are risk-averse, and failing one of these criteria will lead to an automatic rejection.

1. Age and Employment Status

• Age Limit: You must be at least 21 years old. Most importantly, you must be able to fully repay the loan before you turn 60 years old. This means if you are 50, the maximum loan tenure you can get is 10 years.
• Employment: You typically need to have been with your current employer for at least 6-12 months and be a confirmed staff member. Contract staff are often flagged as high-risk unless they work for top-tier multinationals.

2. Income and Affordability (The 33.3% Rule)

Banks follow a strict regulatory policy: your monthly mortgage repayment cannot exceed 33.3% (one-third) of your tailored net monthly income.

• Example: If you earn ₦300,000 monthly, your maximum mortgage repayment cannot exceed ₦100,000 per month. This limits the total amount you can borrow.

3. Equity Contribution (Down Payment)

Unlike personal loans, mortgages are not 100% financed. You must have cash ready for the equity contribution.

• Standard Rate: 20% to 30% of the property value.
• Example: For a ₦40 Million house, you need to have ₦8 Million to ₦12 Million in cash ready to pay upfront.

4. Credit History

Your credit report (from CRC or FirstCentral) must be clean. Outstanding debts on loan apps (like FairMoney, Carbon) or unpaid credit card balances will destroy your application. Tip: Clear all small debts 3 months before applying.

Top Mortgage Banks in Nigeria (December 2025)

Not all banks are equal. Some specialize in speed, while others offer lower rates.

1. Federal Mortgage Bank of Nigeria (FMBN) – Best for Low Rates

• Product: National Housing Fund (NHF) Loan.
• Interest Rate: 6% per annum (The lowest in the country).
• Max Amount: Up to ₦15 Million (requires 2.5% monthly salary contribution).
• Verdict: Perfect for civil servants and low-to-medium income earners who can wait for the longer processing time (6+ months).

2. Stanbic IBTC Bank – Best for Diaspora

• Product: Home Loan.
• Tenure: Up to 20 years.
• Pros: They have an excellent Diaspora Mortgage package, allowing Nigerians seeking home ownership from abroad to apply seamlessly.
• Cons: Higher interest rates compared to NHF.

3. FirstTrust Mortgage Bank – Best for Flexibility

• A merger of First Mortgages and TrustBond, this is a specialized Primary Mortgage Bank (PMB). They offer personalized service and are often more willing to look at “irregular” income streams compared to commercial banks.

Step-by-Step Application Process

1. Pre-Qualification: Visit a bank to calculate exactly how much you can borrow based on your salary. Do not house hunt before this.

2. Property Search: Find a property with valid title documents (C of O or Governor’s Consent). Banks typically will *not* finance properties with only a “Family Receipt” or “Deed of Assignment” pending registration.

3. Offer Letter: Secure a formal offer letter from the property seller.

4. Application: Submit your form, pay slips (3 months), bank statements (6 months), and title copies to the mortgage bank.

5. Legal & Valuation: The bank will hire independent valuers and lawyers to verify the property’s worth and legal status. You pay for this.

6. Approval & Disbursement: Once cleared, the bank pays the seller, and you begin your repayments.

Comparison: NHF vs. Commercial Mortgages

Feature	NHF Loan (FMBN)	Commercial Bank Mortgage
Interest Rate	Fixed at 6% p.a.	Variable (18% – 28% p.a.)
Max Loan Amount	₦15 Million	Up to ₦100 Million+
Equity Contribution	0% – 30% (depending on loan size)	Strict 20% – 30%
Processing Time	Slow (6 – 12 Months)	Fast (3 – 6 Weeks)
Access	Contributors only (2.5% of salary)	Open to all qualified earners

Frequently Asked Questions (FAQ)

Q: Can I use a mortgage to buy land?

A: Generally, no. Standard mortgages are for *habitable* residential properties. However, some banks offer specific “Site and Service” loans for land purchase.

Q: What happens if I lose my job?

A: Defaulting on a mortgage is serious. After a grace period (usually 3-6 months), the bank has the legal right to foreclose (sell) the house to recover their money. Always build an emergency fund of 6 months’ repayment.

Q: Can self-employed people get a mortgage?

A: Yes, but it is harder. You will need to show audited company accounts for 2-3 years and regular cash flow in your business bank account to prove consistency.

Conclusion

Getting a mortgage loan in Nigeria in December 2025 is a smart move if you have the liquidity for the down payment. With property prices expected to rise in 2026, locking in a price now is advantageous.

For most people, the National Housing Fund (NHF) remains the “holy grail” due to its 6% interest rate. However, if you need a home immediately ($< 2 months), a commercial mortgage with Stanbic IBTC or FirstTrust is your best bet. Start by cleaning up your credit report today, and take that first step towards becoming a Nigerian landlord.