Owning a home in Nigeria has long remained out of reach for many aspiring property buyers due to high interest rates, large equity contributions and lengthy loan processes.
Typically, prospective homeowners must deal with multiple paperwork, property valuations and a minimum down payment of about 25 per cent of the property value. In some cases, mortgage interest rates can climb to nearly 30 per cent per annum, while the average loan limit offered by many lenders rarely exceeds ₦50 million.
However, a new mortgage product launched by FirstBank in partnership with the Ministry of Finance Incorporated (MOFI) is seeking to change that narrative.
The initiative, known as the MREIF Home Loan, is designed to make homeownership more accessible for Nigerians by offering more flexible and affordable mortgage terms.
Under the scheme, eligible applicants can access loans of up to ₦100 million at a single-digit interest rate of 9.75 per cent per annum. The facility also provides a repayment period of up to 20 years, significantly easing the financial burden on borrowers.
The mortgage product targets salaried individuals, including Nigerians living in the diaspora, who wish to purchase homes in approved locations across the country.
One of the key features of the MREIF Home Loan is its reduced equity contribution requirement. Unlike conventional mortgages that demand at least 25 per cent upfront payment, the new loan structure allows equity contributions as low as 10 per cent, making it easier for more Nigerians to step into property ownership.
Industry observers say the initiative could help stimulate the housing sector by lowering the financial barriers that have historically discouraged potential homeowners.
For many Nigerians who have delayed property purchases due to high borrowing costs, the new mortgage scheme presents a fresh opportunity to own a home under more favourable terms.
Interested applicants can begin the process by visiting the FirstBank website to learn more about the requirements and application procedure.
