The loan size is between N1m and N15m.
Interest rate: 6% p.a.
Maximum tenor: 30 years.
The first years charges may be up to 23% or 25% because of insurance, bank charges, perfection of legal mortgage, etc.
Each year, you’ll pay insurance premium of less than 1%.
You’ll chose the house you want to buy (or land you want to develop) or give us mandate to find a suitable house for you, contribute 10-30% down payment and the federal mortgage bank will pay the balance for you as loan at 6% interest, 5-30 years tenor provided the property has perfect title.
1 – 5m, 10% down payment
5.1 – 10m: 20% down payment.
N10.1 – 15m: 30% down payment.
Collateral: The property you buy or developed with the loan would be the collateral for the loan. The mortgage bank you use will tell you to pay for perfection of title. That shouldn’t be much. You’ll need to have at least 10% of the loan you’re taking as cash in your account from where the bank will charge for the perfection of mortgage. The process takes four to six months from the time you submit all the required document to get the loan approved and disbursed. They’re putting systems in place to reduce the processing time.