FirstBank of Nigeria has launched a new mortgage scheme designed to help more Nigerians own homes through a single digit interest rate loan facility.
The bank announced that the initiative forms part of a broader housing finance programme supported by the Federal Government through the Ministry of Finance Incorporated Real Estate Investment Fund. The fund aims to expand access to affordable mortgage financing and stimulate growth within Nigeria’s housing sector.
Under the arrangement, eligible Nigerians can access mortgage loans at an interest rate of about 9.75 percent per year. The rate is significantly lower than the prevailing commercial lending rates in the country, which often rise above 25 percent.
The facility allows borrowers to obtain loans of up to one hundred million naira, with repayment periods that can extend up to twenty years. The long tenure is expected to reduce the financial pressure on borrowers by spreading repayments over a longer period.
According to the bank, the programme is open to a wide range of applicants including salaried workers, business owners and Nigerians in the diaspora who are interested in investing in property back home.
Housing finance has remained a major barrier to home ownership in Nigeria due to high interest rates, limited access to long term credit and rising property costs. The new mortgage offering seeks to address these challenges by providing lower cost financing that makes property acquisition more realistic for many households.
Industry observers believe initiatives such as this could help stimulate demand within the housing sector while encouraging greater investment in residential development across the country.
Prospective applicants are expected to begin the process through FirstBank’s mortgage channels, where eligibility requirements and application procedures are provided.
