There has been an increase in the number of loan platforms across the country, and with an increase in the number of businesses across the country, the need for loans becomes more critical.

There are various loan platforms, both online and offline, and one such loan we will be talking about is a mortgage loan in Nigeria.

We will discuss extensively what this loan is all about and how to apply for this loan, and most significantly, we will answer some of the most frequently asked questions you may have on this topic.

Overview Of Mortgage Loan In Nigeria

We cannot effectively discuss this topic without first discussing how the mortgage loan came to be. The Federal Mortgage Bank of Nigeria was founded in 1956; afterward, it became the country’s apex mortgage institution in 1994. Ever since a body called National Housing Fund has been managed and overseen by it (NHF).

The NHF is one of the social savings projects across the country that intends to raise long-term funds to give low-interest loans to contributors, which is among many of the responsibilities of this board.

In Nigeria, the federal mortgage bank loan is governed by the national housing fund, which operates under Act 3 of 1992.

This platform was formed with the sole responsibility of helping Nigerians from all walks of life, especially those with modest income streams, to help them purchase a home at their convenience.

They would contribute 2.5 percent of their monthly salaries to the fund’s managers, the Federal Mortgage Bank of Nigeria.


There are procedures for these. If you want to get on board this Mortgage loan platform, follow the steps below;

  • The first thing you will need to do is to fill out the NHF2 form and return it to the board
  • The Federal Mortgage Bank of Nigeria will receive the form you filled out from their workers.
  • The FMBN will proceed to register new intakes on the form NHF2, and they will assign each of the new intakes a unique participation number.
  • The Federal Mortgage Bank will equally provide each registered employee with a passbook, and this is to enable the members to record the monthly deduction of their 2.5% basic income.
  • After all these processes and steps have been completed, you will now be considered an employee or a registered participant of the National Housing Fund.
  • After writing down your monthly deduction, it will be submitted to the federal mortgage bank of Nigeria. It must go along with a payment schedule that will, in detail, state the amount each member contributed and the time they did so.
  • The federal mortgage Bank will then take the contribution and provide payment receipts.

These above are the step-by-step process of applying for this Mortgage loan in Nigeria, and you must follow the step above to be considered a member.

How Much Can I  Apply For?

Before applying for this Mortgage loan in Nigeria, you need to know how much you can use.

The Federal mortgage loan, like every other loan, has the maximum and minimum amount of loan you can apply for; the maximum amount of loan you can apply for on the platform is N15 Million.

But before such a massive loan is made available to you, you must first pass the creditworthiness score; we will come to this later; keep reading.

Interest Rate Of Federal Mortgage Loan In Nigeria

As you’re aware that every loan comes with an interest rate, the mortgage loan in Nigeria is not an exception. The National Housing Fund Act regulated that the interest rate for the federal mortgage loan should not be over 6% per year.

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This means that this interest rate is constant, irrespective of the amount of loan you borrowed from the platform.

Federal Mortgage Loan tenure

Every loan platform has tenure and terms of the agreement; this platform is not an exception. One of the reasons why most people opt for this loan platform is that the loan tenure can last up to 30 years.

One of the reasons why the loan tenure is long is because this platform is owned and controlled by the federal government. If you borrow from this platform, you must pay back the loan through the Mortgage Bank you borrowed it from.

What are some of the functions of Federal Mortgage Banks in Nigeria?

There are numerous functions of a federal mortgage bank in Nigeria; in this article, we will list a few of them, and they are;

  • The federal mortgage banks provide long-term credit services to Mortgage banks across the country. This is one of their most essential functions. They offer it along with rates allowing mortgage banks and institutions to grant loans to individuals. Typically, those who want to get their own houses.
  • At the federal, state, local, and even rural levels, it stimulates and promotes the establishment and development of mortgage institutions.
  • It stimulates the development of long-term secondary mortgage institutions to suit Nigerians’ housing demands.
  • Licensing authority for secondary mortgage institutions in Nigeria is what the Federal Mortgage Bank of Nigeria grants.
  • It oversees and controls the activities of Nigerian mortgage lenders.
  • It collects and maintains the National Housing Funds under the National Housing Fund Act’s provisions.
  • The Federal Mortgage Bank is also the link between the mortgage market and the capital market. They are also mobilizing both local and foreign investment into the housing sector.

Some of The Benefits Of Federal Mortgage Loan In Nigeria

There are numerous benefits of this loan platform in Nigeria and to Nigerians; for this article, we will discuss just a few of them, and they are;

  • One of the best benefits is that it comes with a housing loan of up to 85% of the cost of the house
  • They fix the interest on the Mortgage loan at 6% per year, which is one of the lowest among other loan platforms, and this rate is constant irrespective of how much you borrowed from the platform.
  • The loan repayment tenure is long, up to 30 years; this is one of the reasons why most people opt for this loan.
  • Contributions usually help to provide greater retirement security.
  • The maximum amount of loan you can obtain from the platform is high which is up to N15 Million

How To Contact The Mortgage Loan Platform

For any inquiries about the federal mortgage bank, its loan, or loan terms, you can contact them by any of these means below, and they are;

  • Federal Mortgage Bank of Nigeria
  • 266 Cadastral AO, Central Business District.
  • PMB 2273 Garki, Abuja. Nigeria
  • 09-2920689, 09-2920690, 09087973000, 08170237904.

Frequently Asked Questions

What are the requirements for a mortgage loan?

Below are some of the requirements you need before you are considered eligible to obtain a loan from this platform, and they are

  • For salaried individuals*
  • Latest salary slips.
  • Bank account statements for the previous three months.
  • PAN card/ Form 60 of all applicants.
  • ID proof.
  • Address proof.
  • Document of the property to be mortgaged.
  • IT returns.
  • Title documents.

How does mortgage work in Nigeria?

The best definition of a Mortgage is this; A Mortgage is a loan in which what is used as collateral is usually a property or real estate.

The borrower agrees with the lender wherein the borrower receives cash upfront and then makes payment over a set period until they pay back the lender in full, as agreed and with the agreed interest.

What is the minimum score for a mortgage?

The minimum credit score needed for most mortgages across the country is 620. However, having a higher credit score will boost your chances and increase the probability of your loan application being approved.

How is a mortgage paid monthly?

Unlike rent, due on the first day of that month, mortgage payments are paid in arrears, on the first day of the month but for the previous month.


We are confident that you have a broadened knowledge of mortgage loans and how to apply for them. If you have questions, feel free to use the comment section. We shall respond swiftly.