What is the mortgage rate in Nigeria?

Commercial bank mortgage rates in Nigeria typically range from 20% to 28% per annum as of 2026. The Federal Mortgage Bank of Nigeria (FMBN) offers NHF-backed mortgages at a subsidised rate of 6% per annum for qualifying contributors. PMI/secondary mortgage lenders charge 15–22% depending on LTV ratio.

What is the National Housing Fund (NHF)?

The NHF is a federal government scheme that requires Nigerian workers earning at least the minimum wage to contribute 2.5% of their monthly basic salary. These contributions are held by FMBN and can be used to access a subsidised mortgage at 6% per annum for up to 30 years on properties valued up to ₦50 million.

How much deposit do I need for a Nigerian mortgage?

Commercial banks typically require 20–30% down payment. FMBN NHF mortgages require a 10% equity contribution for loans up to ₦15 million and 20% for higher amounts. Some developers offer flexible payment plans that bypass bank mortgages entirely.

What is the maximum mortgage term in Nigeria?

NHF mortgages run up to 30 years (for contributors under 50 years old). Commercial bank mortgages are typically capped at 20 years, with many banks preferring 10–15 year terms. The term must end before the borrower reaches age 65 in most cases.

Mortgage Calculator Nigeria

Calculate monthly repayments, check what you can afford, and compare mortgage rates — with Nigerian property values and NHF context.

Property Details

Property Price

₦

Down Payment

Annual Interest Rate

Loan Term (Years)

yrs

Monthly Mortgage Payment

₦371,412

Down Payment

₦5,000,000

Loan Amount

₦20,000,000

Total Repayment

₦89,138,877

Total Interest

₦69,138,877

Interest as % of Loan

345.7%

How to Use This Calculator

Monthly Payment Tab

Enter the property price, your down payment percentage (typically 20%), the annual interest rate, and the loan term in years. The calculator shows your monthly repayment, total interest, and total repayment amount. Use the rate comparison tab to see how NHF rates differ from commercial bank rates.

Affordability Tab

Enter your monthly income and monthly expenses. The calculator applies the standard 33% debt-to-income ratio to determine the maximum mortgage payment you can safely afford, then works backwards to the maximum property price assuming 20% down payment.

Compare Rates Tab

Compare the NHF subsidised rate (6%) against a commercial bank rate. The difference in total interest cost over 20 years is often tens of millions of naira — a compelling reason to pursue NHF eligibility.

The Formula

Monthly Payment = P × [r(1+r)^n] / [(1+r)^n − 1] Where: P = Principal loan amount (Price − Down Payment) r = Monthly interest rate (Annual Rate ÷ 12 ÷ 100) n = Total months (Years × 12) Total Interest = (Monthly Payment × n) − P

This is the standard amortising loan formula used by all Nigerian mortgage lenders. Each payment covers accrued interest first; the remainder reduces the principal balance.

Example

Scenario: Amara buys a ₦25M property with a 20-year mortgage

Property price₦25,000,000

Down payment (20%)₦5,000,000

Loan amount₦20,000,000

Rate (commercial bank 22%)₦386,158/month

Total repayment≈ ₦92,677,920

Total interest≈ ₦72,677,920

Compare with NHF rate (6%): monthly payment would be ₦143,289, total interest ≈ ₦14,389,360. The NHF route saves over ₦58 million in interest — making the NHF registration process extremely worthwhile.

Nigerian Mortgage Market Context

Federal Mortgage Bank of Nigeria (FMBN) — NHF Rate: 6%

The FMBN offers subsidised mortgages to NHF contributors at just 6% per annum. To qualify:

Must have contributed to the NHF for at least 6 months
Maximum loan: ₦15 million for salaried workers; up to ₦50 million through FMBN directly
Minimum equity contribution: 10–20% of property value
Property must be residential and in Nigeria
Maximum term: 30 years (or until age 65)

NHF Contributions

All Nigerian workers earning at least the minimum wage (₦70,000/month) must contribute 2.5% of their monthly basic salary to the NHF. Employers are required to deduct and remit these contributions. In return, contributors gain access to the discounted 6% mortgage and can receive a refund of contributions plus 2% interest upon retirement if they never used a mortgage.

Commercial Bank Mortgages

Banks including GTBank, Access, Zenith, and First Bank offer mortgage products ranging from 20–28% per annum. These are more accessible than NHF for higher-value properties but the interest burden is significantly greater. Some banks partner with real estate developers for off-plan purchases.

FAQ

Visit any FMBN branch or Primary Mortgage Bank with your employer's NHF registration, your NHF contributor number, valid ID, and recent payslips. Self-employed individuals can also register through Professional Mortgage Banks. The process takes 2–4 weeks and requires consistent contribution history before applying for a loan.

NHF mortgages are for completed or under-construction residential properties only — not bare land. Some commercial banks will finance land purchase under separate real estate financing products, but standard mortgages require a structure on the land.

Typical requirements include: Certificate of Occupancy (C of O) or Governor's Consent, property valuation report, 3-6 months bank statements, payslips or business accounts, valid ID (NIN, passport or driver's licence), evidence of equity contribution, and a completed mortgage application form.

Yes. Most Nigerian lenders require a mortgage protection insurance policy that covers the outstanding loan balance in the event of the borrower's death or permanent disability. Premiums are typically 0.3–0.5% of the outstanding balance per year. Some banks bundle this into the mortgage fees.

Several state governments and private developers now offer rent-to-own housing schemes where monthly rent payments build equity over time. These are particularly useful for workers who cannot meet the initial 20% down payment for a conventional mortgage. The Federal Government's FMBN Rent-to-Own scheme targets civil servants specifically.