Nigeria’s housing finance landscape may be set for a shift as First Bank of Nigeria introduces a new mortgage product designed to make home ownership more accessible to Nigerians.
The bank, in partnership with the Ministry of Finance Incorporated (MOFI), has launched the MREIF Home Loan, offering significantly lower interest rates and more flexible terms compared to conventional mortgage options in the country.
Historically, prospective homeowners in Nigeria have faced major barriers, including high equity contributions of at least 25 percent, interest rates that can climb to 30 percent annually, and loan caps typically around ₦50 million. These conditions have made home ownership difficult for many Nigerians.
However, the newly introduced MREIF Home Loan offers a single-digit interest rate of 9.75 percent per annum, with loan amounts of up to ₦100 million and repayment tenures extending up to 20 years. The facility also reduces the equity contribution requirement to as low as 10 percent.
According to details released by the bank, the mortgage is targeted primarily at salaried individuals, including Nigerians in the diaspora, seeking to purchase homes in approved locations.
Industry observers say the combination of lower borrowing costs, higher loan limits, and longer repayment periods could improve access to housing finance and stimulate demand in the real estate sector.
The development comes amid ongoing efforts to address Nigeria’s housing deficit by expanding financing options and encouraging private sector participation in the mortgage market.
Prospective applicants have been advised to visit FirstBank’s official platform for further details on eligibility and application procedures.
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