Buy House with Mortgage (Lagos, Abuja, etc.) & Move-in at 20% Down Payment

Buy a house with mortgage financing, spread the mortgage loan based on your current income for 10 years and above.

If you found a house you desire to buy in Lagos or Abuja, but you can’t afford to pay for it at once, you can buy the apartment and move in while repaying your mortgage.

How to buy a house with a mortgage

Firstly, find a property in Lagos or Abuja that suits your budget, then apply for mortgage financing from any PMI (Primary Mortgage Institution).
Furthermore, the mortgage bank pre-qualify you and if you’re eligible, the pre-qualification process is simply checking your financial statement, payslip and credit status to ensure you have the financial capacity to repay the mortgage within the specified duration.
If you are found eligible, you only need to pay 20% – 30% as a down payment, you move in with your family, while the mortgage bank finances the balance and you will be repaying the mortgage.
However, mortgage loans attract an annual interest (varies), this interest is charged on the reducing balance. As Real Estate Consultants, we advise you to carefully calculate the repayment for you to know how much you will pay eventually.

Challenges of buying house with a mortgage

Obviously, it’s cool when an institution helps you to buy a house. But, it’s not that easy because of some of the stringent requirements. Some mortgage banks in Nigeria request for lengthy documents and still add other charges. Apart from NHF (Nigeria Housing Fund) loans with a 6% annual interest rate, other mortgage loans have quite high interest rates (18% – 25%).

Nevertheless, consulting a Mortgage Broker can alleviate these challenges and ensure you don’t end up in a financial trap.

Which house can you buy with a mortgage?

You can apply for mortgage financing for a property anywhere in Nigeria (if you’re applying for NHF).

Although, for other commercial mortgage loans, the property might have to be in the urban cities/towns e.g. Lagos, Abuja, Ibadan, Ogun, PortHarcourt, Benin etc.

Buy a mortgaged house with 0% interest

Alternatively, you can now enjoy mortgage financing for a property without taking a mortgage loan. There are properties you can buy with installment plans.

These houses might be off-plan or ready built, prices and payment durations vary from one property developer to another.

Moreso, there are off-plan houses in Lekki, Ibeju-Lekki, Festac for those who would prefer Lagos. More off-plan are in Abuja (kubwa), Mowe, Ibafo, Ofada for those who would prefer Ogun state.