Buying a house in Lagos is a big dream for many Nigerians, but not everyone can cough out millions upfront for a property.
That’s where a mortgage comes in.
A mortgage allows you to buy a home now and pay over several years, making homeownership more achievable for regular income earners.
This is a common enquiry we get at RentHouseSurulere during consultations.
In this guide, I’ll walk you through everything you need to know (from qualification and documents to lenders, costs, and common mistakes to avoid).
P.S.: We’ve made this guide as detailed as possible. If you’re in a hurry, use the Table of Contents below to navigate to the aspect of house mortgages in Lagos you want to know.
What Exactly Is a Mortgage?
A mortgage is simply a loan you take from a bank or mortgage provider to buy a property.
The bank pays the property seller on your behalf, and you repay the bank monthly (usually over 10–25 years) with interest.
The property itself serves as collateral. If you default, the bank can take it back.
However, when you make your payments consistently, you ultimately own the house outright.
Mortgage Options Available in Lagos
Several mortgage providers and schemes are available to residents in Lagos. Let’s break them down:
1. Commercial Banks
These include Access Bank, Stanbic IBTC, Standard Chartered, and GTBank.
They offer home loans to salaried or self-employed customers with verifiable income.
- Most require a 20%–30% equity contribution (down payment).
- Interest rates range from 17% to 25% per annum, depending on the tenure and borrower profile.
- Tenure typically ranges from 10 to 20 years.
2. Primary Mortgage Banks (PMBs)
PMBs, such as Platinum Mortgage Bank, Abbey Mortgage Bank, and Infinity Trust Mortgage Bank, specialise in home loans.
They are often easier to work with for first-time buyers.
They also connect clients to the National Housing Fund (NHF), which offers more affordable mortgage loans to contributors.
3. Government Schemes
There are a few options under this category. For example:
- Lagos HOMS (Home Ownership Mortgage Scheme): This scheme is designed by the Lagos State Government for civil servants and low- to middle-income residents.
- Federal Mortgage Bank/NHF Scheme: Offers loans up to ₦15 million at 6% interest to workers who contribute to the NHF.
These are great options if you have a consistent income and can meet the basic documentation requirements.
Do You Qualify for a Mortgage? (Eligibility Requirements)
Before walking into any bank, check if you meet the basic criteria. Most lenders in Lagos look for:
| Age | Between 21 and 60 years old (must not exceed 60 at loan maturity) |
| Income | Steady monthly income (₦350,000 minimum for most commercial banks). |
| Employment | At least 6–12 months of stable employment or self-employment with proof of income. |
| Creditworthiness | Clean credit record (banks check your repayment history on CRC Credit Bureau). |
| Equity Contribution | You must contribute 20–30% of the property price upfront |
To put that equity contribution in more context, assume you’re buying a ₦40 million apartment.
In such a case, expect to pay ₦8–12 million upfront as your equity, while the bank funds the balance.
How Much Can You Borrow?
The amount you qualify for depends on your monthly income and existing debts.
Most banks use the Debt-to-Income (DTI) ratio, meaning your total loan repayment shouldn’t exceed 33% of your net income.
For example:
If you earn ₦300,000 monthly, your maximum monthly repayment should not exceed ₦100,000.
At a 20-year tenor, this could get you a mortgage of roughly ₦15–₦20 million, depending on the interest rate.
But the real question is: are there currently luxury apartment buildings on mortgage for ₦20 million?
That’s a matter for a seperate discussion. We created a seperate blog post to really dive into the cost of properties in Lagos.
Typical Mortgage Costs You Should Expect
Aside from the property price and equity contribution, here are other costs most buyers forget:
| Cost Type | Typical Range |
| Legal/Documentation fees | 2–5% of property value |
| Property valuation fee | ₦100,000–₦300,000 |
| Insurance (life and property) | ₦50,000–₦200,000 annually |
| Processing/administrative fee | 1–2% of the loan amount |
Required Documents for Mortgage Application
Each bank or mortgage institution will ask for some or all of these documents:
-
- Valid ID: National ID, International Passport, or Driver’s License
- Utility Bill (Proof of Address)
- Recent Payslips (3–6 months)
- Bank Statements (usually 6–12 months)
- Employment Letter or Confirmation Letter
-
- Title Documents of Property: C of O, Deed of Assignment, or Governor’s Consent
- Valuation Report: This should be from an approved valuer
- Passport photographs
For Self-Employed or SME Owners
Meanwhile, if you’re self-employed, you can replace payslips with tax clearance and business account statements. You’ll also need:
- CAC registration
- Tax clearance certificate (3 years)
- Business bank statements (12 months)
- Audited financials (for limited liability companies)
Step-by-Step Mortgage Application Process in Lagos
Here’s how it usually goes:
Step 1: Pre-Qualification
Visit a lender’s branch or website to assess your eligibility. Many banks now have online mortgage calculators.
Step 2: Choose Your Property
The property must have a valid title (C of O or Governor’s Consent). Banks won’t finance unverified or disputed properties.
Step 3: Submit Application
Fill out the mortgage form and attach your documents, property valuation report, and equity contribution receipt.
Step 4: Credit Assessment
The bank reviews your income, credit record, and repayment ability. This may take 2–4 weeks.
Step 5: Offer Letter
If approved, you’ll receive an offer letter outlining the interest rate, tenure, and monthly repayment amount.
Step 6: Legal Perfection and Disbursement
Once you accept the offer and complete legal formalities, the bank disburses the loan directly to the property seller.
Step 7: Repayment
You begin monthly repayments, typically through salary deduction or standing order.
Trusted Mortgage Lenders in Lagos
There are many options. Here are some reputable names to start with:
- Stanbic IBTC Home Loan
- Access Bank Mortgage
- Abbey Mortgage Bank
- Infinity Trust Mortgage Bank
- Platinum Mortgage Bank
- Lagos HOMS
Some real estate developers in Lekki, Ajah, and Ikeja offer payment plans, allowing you to pay 10–20% upfront and spread the balance over 2–5 years.
These aren’t mortgages, but can help you get on the property ladder faster.
The main point is to compare interest rates, repayment terms, and upfront costs before making a decision.
Finally…
As someone who has helped many clients navigate this process, I can tell you that homeownership in Lagos is achievable.
You need better financial planning and professional guidance.
Speaking of professional guidance, at RentHouseSurulere, we’re all about helping individuals as they sell, rent, and buy properties, including houses across Lagos.
If you need more personalised guidance or a professional to walk you through the mortgage process in Lagos one-on-one, feel free to reach out to us on WhatsApp, and we can assist you at every step.
