Mortgage Calculator Nigeria: Calculate Monthly Repayments, NHF Loans and Bank Rates in 2026

Buying property in Nigeria on credit remains one of the most significant financial decisions a Nigerian household or business will ever make — and one of the least well-understood. With commercial bank mortgage interest rates ranging from 18% to 28% per annum in 2026, and NHF (National Housing Fund) loans available to eligible contributors at subsidised rates, the difference between choosing the wrong financing structure and the right one can be millions of naira over the life of a loan.

Our free Mortgage Calculator Nigeria lets you model your monthly repayment, total interest payable, and total cost of borrowing across all major Nigerian mortgage types — in seconds, without needing a bank appointment.

Types of Mortgages Available in Nigeria

NHF (National Housing Fund) Loans via FMBN

The National Housing Fund scheme, administered by the Federal Mortgage Bank of Nigeria (FMBN), is the most subsidised mortgage product available to Nigerian workers. Eligible contributors (employees in both public and private sectors who contribute 2.5% of basic salary monthly to the NHF) can access loans of up to ₦15 million at a fixed interest rate of 6% per annum for up to 30 years. This is dramatically cheaper than commercial bank rates.

Qualification requirements include: at least six months of NHF contributions, employer confirmation of contribution, and NHF equity contribution of 10% to 30% of property value. Practical access can be slow — processing times of 6 to 18 months are common. For those who qualify and have the patience, NHF loans represent the lowest-cost mortgage money available in Nigeria.

Commercial Bank Mortgages

Nigerian commercial banks — First Bank, GTBank, Access Bank, UBA, Zenith, and others — offer retail mortgage products primarily for prime and near-prime borrowers. Features in 2026:

• Interest rates: 18% to 28% per annum (variable, typically tied to CBN Monetary Policy Rate + spread)
• Maximum loan term: 20 years (most common: 10 to 15 years)
• Maximum LTV (loan-to-value): 60% to 70% (30% to 40% deposit required)
• Mandatory insurance: life assurance, fire and special perils insurance on the property
• Maximum loan amount: determined by debt-to-income ratio, typically capped at 33% of net monthly income for repayment

Estate Developer Finance

Many Nigerian estate developers — particularly those operating in the Lekki/Ajah corridor in Lagos, Maitama/Asokoro in Abuja, and GRA in Port Harcourt — offer their own instalment payment plans. These are not mortgages in the technical sense but function similarly: a deposit (typically 20% to 30%), followed by monthly or quarterly instalments over 12 to 48 months. Interest rates vary from 0% (interest-free payment plans, typically on off-plan purchases) to 15% to 25% per annum (on developer-financed deals). Developer finance is faster to access than bank mortgages but typically has shorter terms and higher effective cost.

State Government Housing Schemes

Some state governments — Lagos (LBIC), Abuja (FCDA), Ogun — offer subsidised mortgages to civil servants and general applicants on specific estate developments. Terms vary widely by state and available allocation. Check your state housing authority website for current schemes.

Understanding Nigerian Mortgage Repayment Structures

Reducing Balance (Amortising) Mortgages

The standard structure for Nigerian bank mortgages. Each monthly payment includes an interest component (calculated on the outstanding balance) and a capital repayment component. Over time, the interest portion decreases and the capital repayment portion increases. This is the most common structure and the one our calculator models by default.

Flat Rate Mortgages

Some Nigerian lenders and developer finance schemes calculate interest on the original loan amount rather than the reducing balance. This is significantly more expensive than reducing balance: a 15% flat rate loan is equivalent to approximately 27% to 29% per annum on a reducing balance basis. Our calculator lets you compare both structures.

How to Use the Mortgage Calculator Nigeria

1. Property value: The total purchase price or development cost in naira.
2. Deposit/down payment: Amount you are contributing upfront (NHF: minimum 10%; commercial bank: 30% to 40%; developer: 20% to 30%).
3. Loan amount: Automatically calculated as property value minus deposit.
4. Interest rate per annum: Enter the rate quoted by your lender (NHF: 6%; bank: 18%-28%; developer: varies).
5. Loan term: In years (NHF: up to 30 years; bank: 10-20 years; developer: 1-4 years).
6. Interest type: Reducing balance or flat rate.

The calculator outputs:

• Monthly repayment amount
• Total interest payable over the loan term
• Total amount repaid (loan + interest)
• An amortisation schedule (year by year)

Mortgage Affordability in Nigeria: What Can You Actually Borrow?

The rule used by most Nigerian banks is that your total monthly debt repayment (including the proposed mortgage) should not exceed 33% of your verifiable net monthly income. At an 18% interest rate on a 15-year term, you can afford to borrow approximately ₦5,500 for every ₦100,000 of net monthly income. This means:

• Monthly net income of ₦500,000 → maximum mortgage repayment ₦165,000/month → maximum loan ≈ ₦18.3 million at 18% over 15 years
• Monthly net income of ₦1,000,000 → maximum mortgage repayment ₦330,000/month → maximum loan ≈ ₦36.7 million at 18% over 15 years

At NHF rates (6%, 30 years), the same ₦165,000/month repayment capacity could support a loan of approximately ₦27.5 million — illustrating why NHF loans represent such significantly better value for eligible contributors.

Frequently Asked Questions

What is the current Nigerian mortgage interest rate?

Commercial bank mortgage rates in Nigeria in 2026 range from approximately 18% to 28% per annum on a reducing balance basis. NHF loans from FMBN are available at 6% per annum for eligible contributors.

How long does it take to get a mortgage in Nigeria?

Commercial bank mortgages typically take 4 to 12 weeks from application to disbursement. NHF loans via FMBN can take 6 to 18 months due to the volume of applications and the need for physical property verification. Plan accordingly if you are depending on mortgage finance to complete a purchase.

Can I get a mortgage for land purchase in Nigeria?

Most Nigerian commercial banks do not offer mortgages for bare land — only for land with an existing or under-construction building. Some developer finance schemes cover land purchase within an estate development. FMBN loans are for completed or near-completed residential properties only.