Common Myths and Facts About Mortgages in Nigeria

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When it comes to buying a home in Nigeria, many potential homeowners are deterred by misconceptions about the process of obtaining a mortgage. These myths can lead to anxiety and hesitation, preventing many from taking the first steps toward owning their dream home. To help demystify the mortgage process, here’s a breakdown of some of the most common myths and the real facts about mortgages in Nigeria.

Myth 1: Mortgages Are Exclusively for the Wealthy

Fact: While it’s true that mortgages require financial stability, they are not solely reserved for the wealthy. Various mortgage products are designed to cater to different income groups, including middle and lower-income families. Government initiatives and schemes, like the National Housing Fund (NHF), are specifically aimed at making mortgages more accessible to all income brackets.

Myth 2: Interest Rates Are Prohibitively High

Fact: Interest rates for mortgages in Nigeria are indeed higher compared to some other countries, primarily due to economic factors such as inflation and the lending environment. However, rates vary significantly between lenders and are subject to changes in the economic climate. Some government-backed loans offer lower rates, and with proper research, potential homeowners can find rates that are manageable within their budget.

Myth 3: The Mortgage Process Is Too Complicated

Fact: The mortgage process in Nigeria can be complex, but it is not insurmountable. Many banks and financial institutions now offer advisory services to help clients understand the requirements and guide them through the process. Furthermore, with the increasing digitization of banking services, applying for a mortgage is becoming more streamlined and user-friendly.

Myth 4: You Need a Perfect Credit Score to Get Approved

Fact: While a good credit score improves your chances of getting a mortgage with favorable terms, it is not the only criterion lenders consider. Factors such as stable income, employment history, and the value of the property also play crucial roles. Additionally, some lenders offer special programs for first-time buyers with no credit history or those looking to rebuild their credit scores.

Myth 5: Mortgages Take Forever to Pay Off

Fact: The tenure of a mortgage depends on the agreement between the borrower and the lender. In Nigeria, mortgage terms can range from 10 to 30 years, depending on the borrower’s age, the loan amount, and the repayment capacity. Some mortgages allow for early repayment without penalties, giving borrowers the option to clear their debts sooner if they can.

Myth 6: Renting Is Always Cheaper Than Buying

Fact: Renting can sometimes appear cheaper in the short term because it doesn’t require a large initial outlay. However, over the long term, owning a home can be more economical. Mortgage payments contribute to building equity in a property, whereas rent payments go to the landlord with no return on investment for the renter.


Understanding the facts about mortgages in Nigeria can empower potential homeowners to make informed decisions. It’s important to research thoroughly, compare different mortgage products, and consult with financial advisors to find the best mortgage solution that fits one’s financial situation. Owning a home is a significant milestone, and debunking these common myths is the first step toward achieving this goal.

With clearer insights and debunked myths, Nigerians can approach mortgages with more confidence and less uncertainty, bringing them closer to securing a home of their own.

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