In most cases, buying a property in Nigeria usually requires a large capital outlay. Real estate is not cheap in Nigeria, especially in Lagos and Abuja. These days, real estate firms give their customers the option of paying a certain percentage of the total cost of the property and spreading the balance over a short period of time by making monthly payments. This works well for people, especially salary earners because they have a consistent monthly income.
Another way of purchasing a property by paying only a percentage of the cost is through a mortgage. According to Wikipedia, a mortgage loan or, simply, mortgage is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. So, for example, if you want to purchase a property worth N25 million, the mortgage bank may ask you to pay N10 million and they will pay the rest and the property is yours. You will repay the mortgage bank the N15 million with interest over a period of time – often 10 to 20 years.
The good thing about a mortgage facility is that you will take possession of the property immediately and the repayment period is usually long.
I believe repaying a mortgage is better than paying for rent because if you pay rent for 15 years, after the 15 years, the property still belongs to the landlord! But if you are repaying a mortgage with repayment tenure of 15 years, after 15 years, the property is completely yours.
The federal government gives mortgage loans via Federal Mortgage Bank of Nigeria (FMBN) and you can obtain from Lagos State government through Lagos Building Investment Company Plc (LBIC). You can also access mortgage loans from commercial and mortgage banks all over the country.
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