Private Mortgage Lenders In Nigeria – All You Need To Know

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Private Mortgage Lenders In Nigeria - All You Need To Know

Are There Any Private Mortgage Lenders In Nigeria?

Mortgage lenders are financial institutions or platforms that give out mortgage loans to those in need of homes for residency or investment purposes. This service aims to solve the problems people face when trying to buy homes from their earnings.

In most cases, people have to save for decades before they can afford to buy their dream homes, this is why mortgage lenders are sought after, they make home ownership easy and also loan out capital for real estate investment.

Just like other lenders in the financial market, Mortgage lenders receive loan repayments in installments.

Meaning of Mortgage

Mortgages are loans that enable borrowers to purchase houses or real estate. These loans are backed by an agreement, where the borrower takes the same real property as collateral, giving the lender the legal right to take possession of the property if the borrower fails to pay back their loan in time.

Mortgage loans are mostly made available to borrowers to help fund a home purchase or to borrow money worth the value of an already-owned home. The shelter is one of the basic human needs that everyone should have, for this purpose mortgage loans play a vital role in the credit industry.

Requirements For Getting A Mortgage

The first and most important factor that will determine your eligibility for a mortgage is been employed, and being at least above 21 years of age. With those in place, the other requirements include:

1. Create an account with the Mortgage institution of your choice. Ensure it’s a licensed firm before proceeding 

2. Keep your account funded and running for at least six months

3. Make valid documents of your collateral available for verification

4. Present approved building plans.

5. Show evidence of regular income flow as a guarantee you can afford to make repayment

6. Provide a detailed bill of quantity when needed

7. Provide survey plans

8. Provide a document of site approval.

There are thirty-five primary mortgage banks that have been licensed but the Central Bank of Nigeria. They are:

1. Abbey Building Society Limited Mortgage Lenders

2. AG Homes Savings and Loans Limited

3. Akwa Savings and Loans Limited

4. Aso Savings and Loans Limited

5. Brent Mortgage Bank

6. Centage Savings and Loans Limited

7. City Code Savings and Loans Limited

8. Coop Savings and Loans

9. Delta Building

10. FBN Mortgages

11. FHA Mortgages

12. First Generation Homes [Savings and Loans]

13. Gateway Savings and Loans

14. Global Trust Savings and Loans Limited

15. Haggai Savings and Loans Limited

16. Homebase Savings and Loans Limited

17. Imperial Homes Mortgage Bank Limited

18. Infinity Trust Mortgage Bank Limited Mortgage Lenders

19. Jigawa Savings and Loans Limited

20. Jubilee-Life Savings and Loans Limited

21. Kebbi State Home Savings and Loans Limited

22. Lagos Building and Investment Company Limited

23. MayFresh Savings and Loans Limited

24. MSGL Mortgage Bank

25. Mutual Alliance Savings and Loans Limited

26. New Prudential Building Society Limited

27. Nigeria Police Mortgage Bank

28. Omoluabi Savings and Loans Mortgage Lenders

29. Platinum Savings and Loans Limited

30. Refuge Home Savings and Loans Limited

31. Resort Savings and Loans Limited

32. Safe Trust Savings and Loans Limited

33. STB Building Society Limited Mortgage Lenders

34. TrustBond Mortgage Bank PLC

35. United Mortgage Limited

What is NHF (National Housing Fund in Nigeria)

The NHF stands for Nigerian Housing Fund in Nigeria. It is an innovation put together by the Nigerian Federal government, that allows salary earners in Nigeria that are older than 21 years access to a low-interest government loan.

People who subscribe to this scheme have the responsibility of contributing 2.5% of their income to the NHF on a monthly basis through The Mortgage Bank of Nigeria. 

The best part Is that registered members get as much as 5 million Naira of NHF fund, which has in recent times been reviewed to 15 Million. Furthermore the loan can be paid for a duration of 30 years at an interest rate of 6%.

Advantages of Mortgages

Good Credit: Mortgages are a good boost for credit because you will be reciting payments regularly on a monthly basis and this will help boost your credit

Opportunity To Finance Other Projects: 

Early repayment of a mortgage always requires a huge amount of money. If payment is maintained at a steady sequence you will be of the advantage of using the rest of your income to fund other projects

Tax Advantage:

Regular payment of your mortgage makes you legible for interest deductions.

Afford A Home:

if you’re going to save up to buy a home it might take you decades to gather the total sum and make payment. on the other hand, a mortgage affords you the opportunity of acquiring and living in the property while you make repayment.

Disadvantages Of Mortgages

Debt:

Obtaining a mortgage means you’re entering into a legally backed agreement to repay a huge sum of money within a given duration, and this repayment includes interest you will be paying for donkey years.

Collateral:

Mortgages are loans that are secured against the property been purchased, meaning if you can’t make payments for a while you might end up losing the property.

Additional Fees:

Asides from the interest that comes with the mortgage, there can be additional fees that will come up along the line.

Value Depreciation:

There’s no way you can tell if the value of the property you’re trying to acquire will appreciate or depreciate. If the property declines in value, you might lose if you choose to sell it after a given period.

FAQS

How Much Money Do I Need To Start A Mortgage?

A first-time buyer mortgage allows you access to a 90% – 95% mortgage deal. The implication of this is that you will need to source for 5% – 10% of the property cost. In essence, you need 5%-10% of the property cost to proceed with a mortgage.

What Mortgage Is Best For A First Time Buyer?

The most ideal mortgage for a First Time buyer is the FHA loan. This loan has a reduced down payment requirement additionally FHA loans are way easier to access than traditional loans.

This type of mortgage is perfect for first-time homebuyers because they allow a downpayment of as little as 3.5%

Can I Get A Mortgage Without Earning a Salary?

The fact is there is no generally acceptable income range required that enables access to mortgages, however, it depends on the Mortgage bank. Most Mortgage banks take a closer look at what you can afford through your income, be it business or salary based, while others might decline a mortgage application on the basis that the applicant is unemployed or self-employed.

Conclusion

Mortgages are one of the best ways to fulfill your home ownership dream. It helps individuals acquire their dream homes with just 5% of the cost of the house within a short period, instead of waiting for years to complete savings for home purchase.

Before concluding your mortgage deal, it’s important to go through the agreement to ensure there are no gray areas that may bring up additional costs along the line.