Nigeria’s widening housing deficit has made it more appealing for many Nigerians to secure a mortgage with low interest rates in Nigeria as we enter 2026. With the housing shortfall estimated at over 20 million units, owning a home outright has become unrealistic for the average worker, making mortgage financing a more practical path to homeownership.

Rising construction costs, inflation, and soaring property prices, particularly in urban centers like Lagos, Abuja, and Port Harcourt, have pushed homeownership far beyond the reach of most first-time buyers. In 2025 alone, we have seen over 100 percent rise in the cost of renting a property in many parts of Lagos. Hence, as rents rise alongside property values, more Nigerians are turning to mortgages not merely as a convenience, but as the only viable pathway to owning a home.

In this guide on how you can secure a mortgage with low interest rates in Nigeria, as well as how preparing early, targeting subsidized programs, and following steps, can position you to access low interest mortgages, which will in turn help you to save millions in interest.

Low-Interest Options: Government Schemes Lead

Government-backed mortgage schemes have emerged as some of the most viable pathways to affordable homeownership in Nigeria, particularly for low- and middle-income earners. These schemes are subsidized by the federal government and are deliberately structured to reduce the cost of borrowing, extend repayment periods, and make mortgages accessible to a broader segment of the population.

One of the most prominent of such schemes is the National Housing Fund (NHF), managed by the Federal Mortgage Bank of Nigeria. The NHF was created to enable Nigerians to access mortgage financing at rates far below what commercial banks offer.

Under this scheme, contributors pay 2.5 percent of their monthly income into the fund and, after meeting the minimum contribution requirements, can apply for a mortgage at an interest rate of about 6 percent per annum, repayable for up to 30 years. The scheme is open to Nigerians between the ages of 18 and 60 with verifiable income, and the maximum loan amount can go as high as ₦50 million, subject to the borrower’s repayment capacity. Its long tenure and low interest rate make it one of the most affordable mortgage options available in the country.

Another key intervention is the MOFI Real Estate Investment Fund (MREIF), introduced as part of the Federal Government’s Renewed Hope housing agenda. MREIF was established to respond to Nigeria’s estimated 28-million-unit housing deficit by stimulating large-scale housing development and providing accessible mortgage financing.

Through this fund, eligible Nigerians can access mortgage loans of up to ₦100 million at an interest rate of about 9.75 percent, with repayment periods of up to 20 years. The scheme targets low- and middle-income earners and is designed to ease the financial burden of homeownership while supporting the construction and sale of affordable homes across the country. Applicants must be Nigerian citizens, meet defined income and credit requirements, and complete the prescribed documentation and application process.

The third government-backed scheme, the Family Homes Funds (FHF) Help to Own (HTO) initiative, continues to gain momentum in 2025 as a key pillar of Nigeria’s Renewed Hope Cities and Affordable Housing Programme.

Managed by Family Homes Funds Limited (FHFL), a government entity under the Ministry of Housing and Urban Development, HTO targets low- and middle-income earners, enabling them to access up to ₦40 million in financing for property acquisition and construction reflecting FHFL’s expanded ₦500 billion portfolio disbursed through partnerships with over 30 Primary Mortgage Institutions (PMIs) nationwide, with ₦100 billion allocated in Q3 2025 alone to support 10,000 families. Interest rates remain competitive and variable, typically ranging from 8% to 10% depending on the PMI and borrower’s profile.

The maximum tenure is 20 years with monthly repayments capped at 30–40% of income to ensure sustainability. Equity contributions start at 10%, and loans are secured against the property, with digital applications streamlining approvals to 4–6 weeks.

Commercial banks in Nigeria, on the other hand, typically offer mortgage loans at higher interest rates ranging from 21 to 28 percent, with an average of about 22 percent, and usually for much shorter repayment tenures than government-backed schemes.

While these loans may appear convenient because of faster processing times and fewer bureaucratic steps, the high interest rates significantly increase monthly repayments and the total cost of the property over time. For many borrowers, this can place severe pressure on household finances and increase the risk of default. As such, commercial bank mortgages are best considered only in urgent situations where alternative, lower-interest options are unavailable.

Now, lets delve deeper into the two options to help you determine the best options for you as far as getting low interest rate on your mortgage is concerned.

Understanding Low-Interest Mortgage Options: Government vs. Commercial

In Nigeria’s 2025 mortgage landscape, low-interest options, typically below 12%, are almost exclusively government-backed, offering a lifeline amid commercial rates averaging 27.5%. These subsidized schemes address the 28-million-unit housing deficit by prioritizing affordability for low- and middle-income earners. Commercial banks, while flexible for high earners, charge more to offset risks in a 27.5% MPR environment.

Government-Backed Schemes: The Path to Low Rates in Summary:

1. National Housing Fund (NHF) via FMBN

The flagship program: 6% fixed rate (some variants 6–7%), up to ₦50 million, 30-year tenure, 10% equity. Requires 6 months’ contributions (2.5% of monthly income). FMBN disbursed over ₦100 billion in 2025, funding thousands of homes.

2. MOFI Real Estate Investment Fund (MREIF)

9.75% fixed, up to ₦100 million, 20-year tenure, 10–20% equity. Launched under Renewed Hope, it raised ₦250 billion via NGX listing (November 2025), supporting off-plan and completed properties through PMIs.

3. Family Homes Funds Help to Own (HTO)

Variable 5–10% (often subsidized), up to ₦50 million, 20–30 years, 10% equity. FHFL’s ₦500 billion portfolio allocated ₦100 billion in Q3 2025, partnering 30+ PMIs for low-income focus.

These schemes cap repayments at 30–40% of income, making ₦150,000–₦250,000 monthly feasible on ₦300,000 salaries-versus ₦500,000+ on commercial loans.

In other to ensure that your information is comprehensive to make a balanced decision, we will spotlight the mortgage options offered by commercial banks.

Commercial Bank Mortgages: Higher Cost, Broader Access

Banks like GTBank, Access, and Zenith offer 18–28% (average 22%), ₦50–₦500 million, 5–20 years, 20–30% equity. Ideal for self-employed or urgent needs, but interest can double total cost. In 2025, banks held 80% of mortgages but saw defaults at 4.8% due to high rates.

Summary of Eligibility (Common Across Schemes)

* Nigerian citizenship (mandatory).

* Clean credit (300+ score via CRC; poor scores lead to 50% rejections).

* Steady income (₦100,000+ monthly for NHF/HTO; ₦200,000+ for MREIF/commercial; verifiable via payslips or tax returns).

Additional: First-time buyer preference, age 18–60/65, no existing property (for some schemes).

Government options save millions in interest, e.g., ₦20 million at 6% (NHF) costs about ₦43 million total vs. about ₦80 million at 22% (bank). Prioritize NHF for lowest rates; MREIF/HTO for flexibility. Preparation is key: Start contributions early, build credit, and formalize income.

The following are ways to access low interest mortgage options to own your property in Nigeria:

Step 1: Build a Strong Foundation – Improve Your Eligibility

Securing a low-interest mortgage in Nigeria starts long before you submit an application-it begins with deliberate preparation to boost your eligibility. In 2025, with rejection rates hovering around 50% due to incomplete profiles or poor credit, starting 6–12 months early is non-negotiable.

First, join the National Housing Fund (NHF) immediately. Contribute 2.5% of your monthly salary (deducted automatically via payroll)—after just 6 months, this unlocks access to FMBN’s flagship 6% fixed-rate loans (up to ₦50 million, 30-year tenure). Even self-employed individuals can register through cooperatives or direct remittance.

Next, prioritize your credit health. Aim for a 300+ score via CRC Credit Bureau (free basic checks available online or at banks). Clear all outstanding debts, old supplier credits, microloans, or credit cards, because defaults tank scores. Many applicants in 2025 lose out here; a clean record can shave 2–5% off commercial rates or secure MREIF’s 9.75%.

Save aggressively for equity: Most schemes require 10–20% down (e.g., ₦5–10 million for a ₦50 million loan). Use apps like PiggyVest or Cowrywise for automated savings-set daily or weekly deductions to hit targets without temptation. In 2025, PiggyVest’s high-yield lockers (up to 15% returns) helped thousands build equity faster amid 28% inflation.

For self-employed borrowers, formalize your business: Register with CAC (₦50,000–₦100,000), file three years’ tax returns, and join a cooperative for income verification. This opens doors to schemes like PWAN Stars Easy Pay (12–17% rates).

Real scenario: A self-employed trader in Alaba formalized his business, cleared debts, and saved 10% equity via PiggyVest. After 9 months’ prep, he secured a ₦40 million loan at 12% through a developer-backed scheme monthly repayments ₦350,000, affordable on his ₦800,000 turnover.

Bottommline: Emphasize urgency: 50% of applications fail from weak foundations. Start today-NHF contributions, credit cleanup, automated savings. Six months of discipline can save you millions in interest and turn “no” into “welcome home.”

Step 2: Choose the Right Lender and Scheme

With your foundation solid-NHF contributions rolling, credit cleaned, equity saving, now select the lender and scheme that matches your income and needs. In 2025, low-interest mortgages (6–10%) are almost exclusively government-backed; commercial banks average 22% (18–28%), making them a last resort.

Best Fit by Profile

* NHF (via FMBN): Ideal for low earners (₦100,000+ monthly). 6% fixed rate, up to ₦50 million, 30-year tenure, 10% equity. Requires 6 months’ 2.5% salary contributions.

* MREIF (MOFI Real Estate Investment Fund): Suited for mid-tier earners (₦200,000+ monthly). 9.75% fixed, up to ₦100 million, 20-year tenure, 10–20% equity.

* Easy Pay (PWAN Stars or similar developer schemes): Flexible for self-employed or irregular earners. 12–17%, up to ₦70 million, 20 years, 10% equity.

Rate Comparison Example

A ₦30 million loan:

NHF at 6%: about ₦180,000 monthly

MREIF at 9.75%: about ₦250,000 monthly

Bank at 22%: ₦500,000+ monthly

Step 3: Gather Documents and Apply Strategically

With eligibility strengthened and your scheme chosen, success hinges on flawless documentation. In 2025, incomplete submissions cause 50% of mortgage rejections. Assemble everything early; digital uploads now speed processing to 4–6 weeks.

Essential Document Checklist

Personal ID, financial proof, employment or business records, equity evidence, property documents, credit report.

Common pitfalls include incomplete documents, mismatched names or addresses, and fake titles. Preparation saves months.

Overcoming Challenges: High Inflation, Rejection, and Alternatives

Inflation around 28% erodes affordability, making fixed-rate schemes essential. Rejections are often feedback, not failure. Clear debts, build NHF history, formalize income, and consider developer-backed alternatives like Easy Pay.

Persistence pays. Thousands secured homes in 2025 through preparation and digital tools.

Conclusion: Your Path to Affordable Homeownership

Low-interest mortgages in Nigeria are real. With discipline, preparation, and the right scheme, homeownership is achievable, even on modest incomes. Start today. The keys are waiting.