by Dennis Isong
A few years ago, a young couple, Dami and Kunle, finally decided it was time to stop renting. They’d lived in Surulere for almost six years, moving from one rented apartment to another. Each December, their landlord would hint at a new rent increase. Tired, hopeful, and inspired by friends who had become first-time homeowners, they began asking around: How do people actually buy a house in Lagos without being overnight millionaires?
That’s how they stumbled upon the word mortgage.
But understanding what a mortgage really meant in the Nigerian context was another ball game entirely.
This article is your guide—clear, honest, and practical—on how to get a mortgage in Nigeria to buy property in Lagos. Whether you’re a regular salary earner, a budding entrepreneur, or somewhere in-between, this is the information you need before walking into a bank or signing any documents.
1. Understanding What a Mortgage Means in Nigeria
Many Nigerians hear “mortgage” and immediately imagine years of debt or some form of financial imprisonment. It doesn’t help that financial terms are often buried in jargon, making them seem intimidating. But at its core, a mortgage is simply a loan you take to buy a house—while using that same house as the collateral.
In Nigeria, this loan is usually paid back over a period of 5 to 20 years, depending on your age, income level, and the mortgage provider’s terms. You don’t need to pay for the house in full upfront. You just need to come up with a percentage of the total price—often between 20% and 30%—and the bank or mortgage institution handles the rest.
But here’s the reality: getting a mortgage in Nigeria is not as straightforward as it sounds in theory. Lagos, being the hub of property activity in the country, has more mortgage activity than many other states, but challenges remain—lack of awareness, inconsistent land documentation, fluctuating interest rates, and sometimes, inflexible repayment structures.
Even with these challenges, people are buying homes through mortgages in Lagos. So, how can you be one of them?
2. Know Where to Look: Who Offers Mortgages in Nigeria?
Back to our couple, Dami and Kunle—they first walked into their commercial bank, thinking that was the only option. But it turned out there are more mortgage providers in Nigeria than most people know.
You can get a mortgage in Nigeria from:
Commercial Banks like GTBank, Zenith, Stanbic IBTC, Access Bank
Primary Mortgage Institutions (PMIs) like Abbey Mortgage Bank, Infinity Trust Mortgage Bank, FirstTrust Mortgage Bank
Federal Mortgage Bank of Nigeria (FMBN) through the National Housing Fund (NHF)
Cooperative Societies and Developers who offer structured payment plans with mortgage-like features
The best path depends on your income, employment type, location of the property, and how much you’re willing (and able) to pay upfront.
FMBN and PMIs tend to be more flexible for salary earners, especially those contributing to the NHF. Commercial banks might have stricter conditions but offer faster processes. Meanwhile, some developers now partner directly with banks to offer in-house mortgage plans when selling new estates in Lagos.
Still, the golden rule is: Don’t sign anything without asking questions. Lots of questions.
3. What You Need to Qualify for a Mortgage in Lagos
This is where many people lose interest—documentation.
To qualify for a mortgage in Nigeria, especially in Lagos where land documentation is strictly monitored, you need to present a number of documents to show that you are eligible and trustworthy. These include:
Evidence of steady income (usually 6–12 months' salary or business income statements)
Employment letter or proof of business registration
Bank statements
Tax Identification Number (TIN)
Valid means of identification
Proof of equity contribution (your own portion of the property price)
Property title documents (in cases where you already selected the property)
Now, one crucial thing to understand is that the mortgage institution doesn’t just give you money because you asked. They assess risk. They look at your income versus expenses and use a formula called Debt-to-Income Ratio (DTI) to see how much you can realistically repay monthly.
If your DTI is too high—say you already have several loans or your current rent takes a large chunk of your salary—they might reduce the loan amount you qualify for or reject the application entirely.
The type of job you have also matters. A civil servant with verified NHF contributions may have easier access through FMBN, while an entrepreneur might need more documentation to prove stable income.
And yes, age plays a role. Most lenders prefer to work with borrowers who are younger than 60 because the repayment term is often calculated to end before retirement age.
4. Choosing the Right Property and Developer in Lagos
You can’t apply for a mortgage without identifying the property you want to buy. And here’s where Lagos real estate can get tricky.
It’s not just about finding a house you like—it’s about finding one that is approved, has verifiable title documents, and is within an acceptable price range for the mortgage provider.
Dami and Kunle almost signed for a beautiful 3-bedroom flat in Ajah. Everything looked perfect—until their bank rejected the property. Why? The land documentation wasn’t complete and the developer didn’t have a registered title. That would have put the bank at risk if things went south.
So what should you do?
Work with a reputable developer. Many established real estate firms in Lagos have pre-approved partnerships with mortgage banks, which makes the process smoother. These developers often build in places like Sangotedo, Abijo, Lekki-Epe corridor, and some parts of Ikorodu and mainland Lagos.
Choose a property with a proper C of O (Certificate of Occupancy) or at least a Governor’s Consent. Anything less may complicate your mortgage application or delay disbursement.
Also, consider the neighbourhood. Areas with good infrastructure, security, and rising demand tend to be mortgage-friendly. Even if you’re not thinking of resale now, the value of your property in the future matters too.
5. What Happens After Approval—And What You Must Keep in Mind
Once your mortgage is approved and the money is disbursed, don’t throw a housewarming party just yet. You’re not the full owner—not until the last kobo is paid.
Here’s how repayment works: you’ll start paying your monthly installments, which include the principal (the actual loan) and interest. Most mortgage providers use a fixed interest rate for the first few years, and then adjust based on market rates. Others give you the option of floating rates from the beginning.
Missing payments can attract penalties and might eventually lead to foreclosure—yes, that’s when the bank repossesses the house. But don’t panic: as long as you budget wisely and don’t overcommit, it’s manageable. Some people even pay off their mortgage faster than scheduled.
A smart tip? Add a few months’ mortgage payments to your savings. That way, if an emergency hits—job loss, health issues—you won’t default immediately.
Remember, mortgages are not free money. They are structured financial commitments. The real value is in giving you a chance to own a property in Lagos without having to cough out ₦50 million all at once.
Final Thoughts
So, how do you get a mortgage in Nigeria to buy property in Lagos?
Start by understanding what mortgages are and how they work here. Then look for the right mortgage providers based on your income and job type. Prepare your documents, choose the right property with complete title, and apply. Once approved, pay consistently and stay financially disciplined.
It’s not magic. It’s a journey—and many are walking it, quietly and successfully.
Like Dami and Kunle, who moved into their home in Ibeju-Lekki two years ago. They still pay their monthly mortgage from their salaries. But the stress of dealing with landlords is gone. The apartment? It’s not Banana Island luxury, but it’s theirs. And that, in a place like Lagos, is gold.
If you're ready to start the process, take your time, ask the right questions, and remember—home ownership through a mortgage in Lagos is possible, even in today’s economy.
Dennis Isong is a TOP REALTOR IN LAGOS.He Helps Nigerians in Diaspora to Own Property In Lagos Nigeria STRESS-FREE. For Questions WhatsApp/Call 2348164741041
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