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Calculate monthly mortgage payments, total interest, and see a full amortisation breakdown for Nigerian home loans. Includes NHF and commercial mortgage rates.
Mortgage Details
Understanding Mortgages in Nigeria
The Nigerian mortgage market offers two main options: National Housing Fund (NHF) loans at subsidised rates (6–9%) and commercial mortgages from banks at market rates (18–28%). NHF loans require contributing to the National Housing Fund for at least six months and are capped at ₦15 million. Commercial mortgages have higher limits but significantly higher interest rates.
NHF vs Commercial Mortgage
NHF Mortgage: Available through the Federal Mortgage Bank of Nigeria (FMBN). Interest rate is 6% for loans up to ₦5 million and 9% for loans between ₦5–15 million. Maximum term is 30 years. You must be an NHF contributor for at least 6 months and your monthly repayment cannot exceed one-third of your net monthly income.
Commercial Mortgage: Offered by banks like Access, GTBank, Zenith, and First Bank. Interest rates range from 18–28% depending on the bank and your profile. Terms are typically 10–20 years with 20–30% down payment required. No NHF contribution requirement.
Tax Benefits of Mortgages
Under the NTA 2025, interest paid on a housing loan from a recognised institution is tax-deductible. This can significantly reduce your PAYE liability, especially in the early years of the mortgage when interest payments are highest. Keep all loan documentation and annual interest certificates for your tax filing.
Additionally, your NHF contribution (2.5% of basic salary, capped at ₦200/month for salaries above ₦3,000/month) is deductible from your taxable income.
Nigerian Mortgage Rate Comparison
Frequently Asked Questions About Mortgages in Nigeria
Most commercial banks require 20-30% of the property value as a down payment. NHF mortgages through the Federal Mortgage Bank may accept as low as 10% depending on the loan amount and your contribution history.
Yes. Under the Pension Reform Act, you can access up to 25% of your Retirement Savings Account (RSA) balance as equity contribution for a residential mortgage, provided you have been contributing for at least 5 years.
Yes. Under the NTA 2025, interest paid on a housing loan from a recognised financial institution is deductible from your taxable income. This applies to both NHF and commercial mortgages. Keep annual interest statements from your lender for tax filing.
Mortgage deeds attract stamp duty at 0.375% of the mortgage value. This is a one-time payment made at the time of registration. Use the TaxNGR Stamp Duty Calculator to estimate the exact amount for your mortgage.
NHF mortgages typically take 3-6 months due to Federal Mortgage Bank processing queues. Commercial bank mortgages are faster at 2-8 weeks, depending on property valuation, title verification, and completeness of your documentation.
The NHF mortgage ceiling is currently ₦15 million. Loans up to ₦5 million attract 6% interest, while loans between ₦5-15 million attract 9% interest. The maximum repayment term is 30 years, and monthly repayments cannot exceed one-third of your net monthly income.
Yes, it is possible to refinance a commercial mortgage using an NHF loan, provided you meet the NHF eligibility criteria (at least 6 months of contributions, the property value is within the NHF ceiling, and you are not already a beneficiary of an NHF loan).
The lender can initiate foreclosure proceedings after a defined notice period (typically 3-6 months of missed payments). The property can be sold to recover the outstanding loan balance. Any surplus from the sale is returned to you, but any shortfall remains your liability.
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