Nigeria 💰 NGN Last updated2026-05-28

Mortgage Calculator Nigeria

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Quick answer (Nigeria)

A ₦50,000,000 commercial bank mortgage at 26.5% over a 15-year term works out to a monthly payment of about ₦1,126,252, with total interest of ₦152,725,327 over the full term.

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Mortgage Calculator

NGN

Home Value

₦

LTV 80% · No PMI ✓

Loan Amount

₦

Interest Rate

Term

Total Monthly

₦1,209,585

PITI

Principal + Interest

₦1,126,252

75% goes to interest

Total Interest

₦152,725,327

over 15 years

Monthly Breakdown

Principal & Interest₦1,126,252

Property Tax (1.1%/yr)₦57,292

Homeowner's Insurance (0.5%/yr)₦26,042

Total Monthly₦1,209,585

Principal vs Interest Split

25% principal

75% interest

✨ Live recalculation·Includes P&I, property tax, insurance. Estimates only — consult a licensed lender for exact rates.

Reviewed by

Aisha Rahman, CFP®, MBA LinkedIn ↗

CFP® with 12+ years in mortgage & retirement planning.

Local context

Mortgages in Nigeria

Typical loan

₦50,000,000

in Nigeria

Typical rate

26.5% p.a.

prime borrower, 2026

Typical term

15 years

most common

Market overview

Nigerian mortgages are dominated by Federal Mortgage Bank of Nigeria (FMBN — state-backed), Trustbond Mortgage, Infinity Trust Mortgage, Aso Savings, and commercial banks Access Bank, GTBank, UBA, and Zenith. The mortgage market is structurally tiny — total housing finance stock is under NGN 2 trillion (~$1.3B) for a population of 220M+, vs informal/family financing for the vast majority of home purchases. CBN policy rate sits at 27.5% (early 2026) after aggressive 2024 hikes to fight post-FX-unification inflation.

Why 26.5% is the typical rate

26.5% reflects a typical commercial bank mortgage rate for a salaried Nigerian borrower at 70% LTV in early 2026, with CBN policy rate at 27.5%. FMBN National Housing Fund (NHF) scheme provides subsidized 6% mortgages to contributors earning under NGN 70,000/month — but the loan size cap and queue make this practical only for very specific income tiers.

Tax & regulatory notes

Mortgage interest is partially deductible from Nigerian personal income tax for owner-occupied homes (subject to caps). Capital Gains Tax of 10% applies on property disposal. Land Use Charge varies by state (Lagos is highest at 0.1-0.396% of assessed value). Foreign ownership of land is restricted under the Land Use Act 1978 — foreigners typically hold leasehold (max 99 years) rather than freehold. Most Nigerian property transactions use the Certificate of Occupancy (C of O) system.

🧮 Worked example

A ₦50,000,000 commercial bank mortgage at 26.5% over a 15-year term

Loan amount

₦50,000,000

Annual interest rate

26.5%

Term

15 years (180 months)

Monthly payment

₦1,126,252

Total interest paid

₦152,725,327

Total paid (principal + interest)

₦202,725,327

❓ FAQ (Nigeria)

Common questions in Nigeria.

National Housing Fund (FMBN) — am I eligible?

NHF is administered by Federal Mortgage Bank of Nigeria and requires contributions of 2.5% of monthly basic salary from all formal-sector Nigerian employees (mandatory deduction). After contributing for 6+ months, employees can apply for NHF-subsidized mortgages at 6% fixed rate up to NGN 15 million (recently raised from NGN 5M), with primary residence requirement and 30-year max tenor. Queue times are typically 12-24 months and approval rates have historically been modest, but the program remains the cheapest formal mortgage option in Nigeria.

Why are Nigerian mortgage rates so high?

Three structural factors: (1) CBN policy rate at 27.5% reflects post-FX-unification inflation control (CPI was 33%+ in early 2024, now ~22%), (2) Nigerian banks demand 4-8% spreads over the policy rate for retail housing finance due to historical credit-quality stress, (3) the long-term funding base for mortgages is essentially nonexistent — banks fund 15-year mortgages with current accounts and short-term deposits, requiring extreme term-premium pricing. As inflation cools toward CBN's 12% target, mortgage rates should compress meaningfully but remain among Africa's highest.

Can foreigners buy property in Nigeria and get a mortgage?

Foreigners can buy property with restrictions. The Land Use Act 1978 restricts foreigners to leasehold (max 99 years) rather than freehold ownership, with state governor approval required for transactions. Mortgages for foreign buyers are practically unavailable from Nigerian banks; most foreign buyers (often Nigerian diaspora) pay cash. Lagos has the most active foreign-buyer market via Eko Atlantic, Banana Island, and Ikoyi premium developments — typically dollar-denominated cash transactions with USD-priced contracts.

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