If you want to buy a home for yourself in Nigeria, you can take advantage of a mortgage loan. You can get this loan from different lenders, with different loan terms and conditions. Prior to going to a lender, you can find out how much mortgage you can afford, by using an online home mortgage calculator.
What a mortgage calculator means
A home mortgage calculator is a tool by which you can find out how much amount you have to pay each month, for a certain amount of loan. You also can choose your loan term, interest rate, and loan amount to find out the monthly repayment amount. Depending on your needs, a calculator can be of many types, like, a repayment calculator, interest-only mortgage calculator, cost calculator, etc.
Mortgage loans are offered to the people of Nigeria through accredited mortgage lending organizations and banks all across the country. The Federal Mortgage Bank of Nigeria (FMBN) issues home loans through lenders and banks and raises funds for the loans through the National Housing Trust Fund or NHTF.
Requirements to take a mortgage loan
You need to fulfill some requirements before you can be eligible to get a home loan in Nigeria. Some of the requirements are mentioned below:
- An introduction letter from your employer: You need an introduction letter from your current employer to ensure that you are a permanent employee of that company.
- Copy of documents of the property: You need to have copies of documents related to the property you want to purchase.
- Valuation report of the property: You need to produce a valuation report of the property where the purchase is from an original allottee. The valuation report should be accompanied by photographs, taken from all angles of the property.
- Cash flow projection on repayment of the loan: You need to give a cash flow projection on repayment of the loan, where the processing fee will be 0.25% annually, the management fee will be 0.5% quarterly, the annual interest rate will be 15.75% and at least 2.5% of the loan amount will include fee towards perfection and sundry charges.
- Salary stubs: You have to produce salary stubs for the last three months, to prove that you have a good steady income and you can afford to repay the loan amount.
- Bank account statement: You have to produce your bank account statement for the last six to twelve months.
- Offer letter from the agent: You need to produce an offer letter from the agent confirming your interest to purchase the property.
You can also take advantage of NHTF mortgages, even if you are a non-resident Nigerian. In that case, you will need to have a National Housing Trust number, to be eligible to get the loan. However, the interest rate of the loan will be higher, so, you can use an online home mortgage calculator, to find out whether or not you can really afford to take the loan.
Samantha Taylor is the Community Mentor of MortgageFit and has been contributing her suggestions to the Community since 2005.
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