Understanding Mortgages in Nigeria
Understanding Mortgages in Nigeria Owning a home is a major milestone, and for many Nigerians, a mortgage is the most realistic path to achieving it. Yet, mortgages are often misunderstood, which causes hesitation or costly mistakes. This guide explains how mortgages work in Nigeria, the types available, requirements, costs, and how to qualify. What Is a Mortgage? A mortgage is a long-term loan used to purchase property. Instead of paying the full price upfront, a bank or mortgage institution pays the seller, and you repay the lender gradually—usually over 10 to 30 years—with interest. The property itself serves as collateral until the loan is fully paid. How Mortgages Work in Nigeria Mortgage lending in Nigeria is regulated by the Central Bank of Nigeria and supported by institutions like the Federal Mortgage Bank of Nigeria and the Nigeria Mortgage Refinance Company. These bodies help stabilize interest rates, provide funding to lenders, and improve access to housing finance. Borrowers typically make a down payment (often 10–30% of the property value), while the lender finances the balance. Monthly repayments include both principal and interest. Types of Mortgages Available 1. Fixed-Rate Mortgage Interest remains the same throughout the loan period, making payments predictable. 2. Variable-Rate Mortgage Interest changes based on market conditions. Payments may increase or decrease over time. 3. National Housing Fund (NHF) Mortgage A government-supported scheme offering lower interest rates to contributors. 4. Commercial Bank Mortgages Provided by banks and private lenders, often faster but with higher interest rates. Basic Requirements While criteria vary by lender, most require: Proof of steady income or employment Bank statements Valid identification Credit history Property valuation report Equity contribution (down payment) Self-employed applicants may need additional financial records like tax returns and business registration documents. Costs to Expect Beyond monthly repayments, buyers should budget for: Legal fees Property valuation Insurance Stamp duties Registration fees These can add 5–15% to the property cost. Benefits of Using a Mortgage Makes homeownership possible without full upfront payment Allows you to invest while paying gradually Builds equity over time Protects savings for other investments or emergencies Common Mistakes to Avoid Taking a loan beyond your repayment capacity Ignoring hidden charges or variable rate clauses Skipping professional legal review Failing to verify property title before applying Mortgages can be powerful financial tools when used wisely. The key is understanding the terms, choosing the right lender, and ensuring the property is legally secure. With proper planning and professional guidance, a mortgage can move you from renting to owning with confidence. About Raa Realtors N Properties Raa Realtors N Properties is a Lagos-based real estate company specializing in verified land sales, property acquisition, and real estate advisory services across Lagos.We help individuals, families, and diaspora investors safely buy land and properties with proper documentation, government-recognized titles, and transparent processes.Our core services include:* Buy verified land in Lagos* Property documentation & verification* Land banking opportunities* Residential and commercial property sales* Real estate investment advisoryWith a strong commitment to due diligence, transparency, and client protection, we ensure every property transaction is secure and legally compliant. 📍 Location: Lagos, Nigeria📞 Call/WhatsApp: +2349126532701 🌐 Website: https://raanrealtors.comExplore available verified properties here:👉 https://raanrealtors.com
HOW TO BUY PROPERTY IN ABUJA OR LAGOS SAFELY
Buying property is one of the biggest financial decisions you’ll ever make. In fast-growing real estate markets like Abuja and Lagos, opportunities are everywhere — but so are risks. From fraudulent land sellers to unclear titles, a careful, informed approach is essential to protect your investment. This guide walks you through the safest way to purchase property step1. Verify the Seller’s Identity and Authority Always confirm that the person or company selling the property has legal rights to do so. Request valid identification and, if it’s a company, verify its registration with the Corporate Affairs Commission. If the seller claims to represent the owner, ask for a notarized power of attorney or written authorization. 2. Confirm the Land Title Documents Legitimate properties should have verifiable documents such as: Certificate of Occupancy (C of O) Right of Occupancy (R of O) Deed of Assignment Survey Plan Take these documents to the relevant land registry for verification. In Abuja, check with the Federal Capital Territory Administration land department. In Lagos, verify through the Lagos State Land Registry. Never rely on photocopies alone — inspect originals. 3. Conduct a Physical Inspection Visit the property yourself. Confirm: The land exists and matches the survey description There are no occupants or disputes Access roads and infrastructure are genuine If possible, visit with a surveyor or real estate professional to validate boundaries and location coordinates. 4. Check for Government Acquisition or Disputes Some lands are under government acquisition or earmarked for public projects. Buying such property can lead to demolition or forfeiture. Request a land status report and confirm that the property is not under dispute or litigation. You can also check with local authorities or community leaders. 5. Use a Real Estate Lawyer A qualified property lawyer will: Conduct title searches Draft or review contracts Confirm document authenticity Ensure proper transfer of ownership This step is non-negotiable if you want to avoid costly mistakes. 6. Avoid Cash Payments Without Documentation Always pay through traceable means such as bank transfers or certified cheques. Ensure you receive: Official receipts Signed agreement of sale Witnessed documentation Never pay the full amount before verifying documents and signing agreements. 7. Register the Property Immediately After Purchase After payment, your lawyer should register the property in your name. This step legally establishes ownership and protects you against future claims. 8. Watch for Red Flags Be cautious if you notice: Prices far below market value Pressure to pay quickly Inconsistent ownership stories Refusal to provide original documents If something feels off, pause the transaction. 9. Work With Trusted Professionals Partner with reputable real estate firms, surveyors, and lawyers who have verifiable track records. Fraudsters often target buyers who try to handle everything alone. Buying property safely in Abuja or Lagos is not about luck — it’s about due diligence. Verify documents, involve professionals, and never rush decisions. Taking these precautions ensures your investment is secure, legally recognized, and free from future disputes. About Raa Realtors N Properties Raa Realtors N Properties is a Lagos-based real estate company specializing in verified land sales, property acquisition, and real estate advisory services across Lagos.We help individuals, families, and diaspora investors safely buy land and properties with proper documentation, government-recognized titles, and transparent processes. Our core services include:* Buy verified land in Lagos* Property documentation & verification* Land banking opportunities* Residential and commercial property sales* Real estate investment advisory With a strong commitment to due diligence, transparency, and client protection, we ensure every property transaction is secure and legally compliant. 📍 Location: Lagos, Nigeria📞 Call/WhatsApp: +2349126532701 🌐 Website: https://raanrealtors.comExplore available verified properties here:👉 https://raanrealtors.com