Build or buy house with mortgage financing, spread the mortgage loan based on your current income for 10 years and above.
Have you found a house you want to buy in Lagos or Abuja, but you can’t afford to pay for it at once?.
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How to buy a house with mortgage
Furthermore, the mortgage bank pre-qualify you and if you’re eligible, you will be required to pay 20% – 30% as equity, while the mortgage bank finances the balance.
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 a house with 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) loan with 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.
Buy a house without spending huge millions of naira
Which house can you buy with 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.
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.
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.