an average nigerian does not like d word dept on like n d developed world were they live on morgage.

y be on mortgage wen u dont have to?

i am actualy interested in a mortgage facility , have visited some nigerian banks website, and even contacted them, all i hear is the facility is for clients in selected part of Nigeria e.g Lagos , abuja e.t.c.
Am interested if you have any info.

It is not Nigerians that are not mortgage friendly. It is Nigerian banks and the FG that are not mortgage friendly.

It is not only mortgage. Getting any loan from banks in Nigeria is a problem. Only the rich and famous are able to get loans.

Also, if you look at the rate of loans in Nigerian banks, it can cause somebody headache. If you are used to getting loans for personal or business use in UK, USA and other developed countries, you will be surprise with the system in Nigeria.

The major reason why there is development in UK and USA is the availability of credit facilities at affordable interest rate. In the UK, there are currently interest rate of 6% - 8% for personal loan without any collateral (unsecured loan).

Good and sustained development cannot happen if ordinary people cannot get access to loans. No wonder Nigeria is for the rich and famous and crime is on the increase - killing, stealing, armed robbery, kidnap, etc.

Mortgage at 25% +/- is Life Slavery, Just do the maths,

beknown:

It is not Nigerians that are not mortgage friendly. It is Nigerian banks and the FG that are not mortgage friendly.

It is not only mortgage. Getting any loan from banks in Nigeria is a problem. Only the rich and famous are able to get loans.

Also, if you look at the rate of loans in Nigerian banks, it can cause somebody headache. If you are used to getting loans for personal or business use in UK, USA and other developed countries, you will be surprise with the system in Nigeria.

The major reason why there is development in UK and USA is the availability of credit facilities at affordable interest rate. In the UK, there are currently interest rate of 6% - 8% for personal loan without any collateral (unsecured loan).

Good and sustained development cannot happen if ordinary people cannot get access to loans. No wonder Nigeria is for the rich and famous and crime is on the increase - killing, stealing, armed robbery, kidnap, etc.

ahf:

Mortgage at 25% +/- is Life Slavery, Just do the maths,

Double digit is high. No matter what you are into. However, you ought to realise that default rate is much higher in naija. Ppl take loan and mistake it for their share of the national cake

A mortgage is the transfer of an interest in property (or the equivalent in law - a charge) to a lender as a security for a debt - usually a loan of money. While a mortgage in itself is not a debt, it is the lender's security for a debt. It is a transfer of an interest in land (or the equivalent) from the owner to the mortgage lender, on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. In other words, the mortgage is a security for the loan that the lender makes to the borrower.

it is a common practice of most nigerian banks to transfer bad and doubtful debts incured in urban areas to rural branches books as if the facilities were original given to the rural areas of nigeria.  it is one massive con on the society

beknown:

It is not Nigerians that are not mortgage friendly. It is Nigerian banks and the FG that are not mortgage friendly.

It is not only mortgage. Getting any loan from banks in Nigeria is a problem. Only the rich and famous are able to get loans.

Also, if you look at the rate of loans in Nigerian banks, it can cause somebody headache. If you are used to getting loans for personal or business use in UK, USA and other developed countries, you will be surprise with the system in Nigeria.

The major reason why there is development in UK and USA is the availability of credit facilities at affordable interest rate. In the UK, there are currently interest rate of 6% - 8% for personal loan without any collateral (unsecured loan).

Good and sustained development cannot happen if ordinary people cannot get access to loans.[b] No wonder Nigeria is for the rich and famous and crime is on the increase - killing, stealing, armed robbery, kidnap, etc.[/b]

there can never be any justifications for any crime. give these same fools loans they will stil be at work doing their evil deeds

spoke with someone today at stanbic ibtc bank regarding mortgage facility, the guy said i must earn upto 300k a month so as to qualify and minimum facility is N10 million @ 22% and payable over a period of 20 years.
Anyone in the house with more information regarding mortgage please lets keep it coming.

Stanbic Ibtc line 070022557826242

whatalife:

spoke with someone today at stanbic ibtc bank regarding mortgage facility, the guy said i must earn upto 300k a month so as to qualify and minimum facility is N10 million @ 22% and payable over a period of 20 years.
Anyone in the house with more information regarding mortgage please lets keep it coming.

Stanbic Ibtc line 070022557826242

Do you know how much you're talking about? N533m after 20 years if it's commulative. God help you !!!

dredone:

an average nigerian does not like d word dept on like n d developed world were they live on morgage.

debt u mean?

Ops E:

Do you know how much you're talking about? N533m after 20 years if it's commulative. God help you !!!

and ur maths is whack. should be <60M

I have never been a fan of this Nigerian Mortagage Property System. Too many legal complexities and traps hidden for the Mortgagee and it takes a sharp eagle eyed lawyer to help his client out from the inherent difficulties due to the streneous and obnoxious clauses and demands inserted in the contract for sale and mortgage contracts. I have battled so many banks over these things and the worse part is always the fluctuating interest rate which always seems to hover around 18% to 22% and its quite difficult for the person to maintain that status quo for so many years especially if he has to continue servicing the interest payment over the principal loan.

In short i really don't advise it because if your source of income to pay dries up mysterious or due to no fault of yours, where do you start from? if your finding it difficult to service the interest, how do you cope with the principal that continues to overlap year in year out? In fact most mortgage debtors have more problems financing the interest than the principal sum.

I have always prefered Nigerians buying their own lands to build according to their financial power and resources. It might take long to build the house and the cost of building materials might blow up but at least, you are controlling how you spend and when you spend but a mortgage is something you have to go to bed worrying about and waking up worrying about.

Paying 22% interest for 22 years is not a sure banker thing. You might lose your job, lose your source of income, lose the flow of the cash cow you expect, higher payments of personal finances e.g school fees for your kids or other things and you still have to be worrying about the loan and interest rate to pay.

This isnt Europe or America where the banks can cut you some slacks and fight towards a lower interest rate. Its Nigeria, it always gets higher and the rules change arbitrarily.

Being a debtor is something no one should pray for whether it happened by chance, design or accident. Bottom line you are a debtor and the thought of you being the true owner and landlord of that house or home is never complete until you finish the mortgage payment. Even tenants have a better chance of sleeping peacefully than those with mortgage homes in Nigeria because once the tenure is up, they can move to a better place or according to their pocket but in a mortgage home, it will continue to haunt and frighten you because Money is something that is subjective and you really dont know how it comes and goes especially with the high interest rate payment.

I'll rather prefer the mowe/ibafo kind of mortgage system where you can pay little sums till you own the place interest free rather than the very high loans bank give from N20 Million upwards with 22% per year for the next 20 years.Foreclosure is not a good thing and so many individuals are victims of this practice every day in Nigeria but the banks will do everything possible to supress the news because it is against their interest if people have a very negative attitude to it.

God forbid bad thing!

A bank is in the business of lending money so that they make their money off the interest! So i'll rather encourage Nairalanders looking to start their lives with their little income to purchase lands or properties according to their financial Muscle. At least you and your wife can sleep peacefully at Night with out dreaming of the debt recovery team barging on your door in your dreams!

Lawyer,

You have really rounded it all up beautifully. It is not only Nigerians at home that should avoid mortgages in Nigerian banks. Nigerians in diaspora should avoid mortgages in Nigeria because the mortgages in Nigeria are designed to enrich the banks by all means. Consumers have no voice in Nigerian mortgage market.

I will prefer to purchase land and build my own house in Nigeria, no mortgage. No hurry in life. Better a peaceful person than live in draconic debt from Nigerian mortgages.

@Lawyer

You're too good. Thanks for enlightening me more on te Mortgage System In Nigeria. I have always had this idea of living in Oyo State and building my house there. I don't have to live in Lagos or Abuja to be successful in life and add value to the lives of Nigerians. Once I have internet connection, telephones and can power my office myself, I can run my business from Ibadan. I dont need to be in debt to Nigerian banks. I can only operate bank accounts with them. Cheers.

@ Lawyer,

Thank you for that little analysis and word of advice. I have been a great proponent of this mortgage thing, having seen how it works over here in Europe and other places. I am wiser now.

Better to take a land and be doing it small small according to your ability.

Hi all, i work in a bank and the notion most of you are having is wrong. at least i know we give out loan personally i have given out over 100 the problem is not that the banks do not  give out loans but most of the customers cannot afford it . Now let me give a simple example in Nigeria today an average 3 bedroom flat will sell for at least8 million let assume this loan is given for 20 years at let say 10% the calculation will be

Principal = 8000000/240 months = 33,333.33
Interest For 1st month = 30/365*0.10* 8,000,000=65,753.42
therefore Principal+interest= 33,333.33+65,753.42=99,086.75(Monthly Repayment)
Now in Nigerian there is a labour law that says you cannot use more than 33.3% of a persons monthly income to service loan. with the above calculation for you to have a loan of 8M at 10% for 20 years you must be earning about N300,000 monthly ladies and gentlemen how many Nigerianget paid 300k monthly

The second problem is identity problem. In Nigerian the government deliberately don'twant to have accurate data of its citizenry because of politics
Abroad you cannot have a person that is not in the data base he can easily be traced unless you are illegal.  from my personal experience 95 % of loan given to salary earners dont go bad because we normally give it out with employers consent  on the other side 50% of self employed default. so am more comfortable with salary earners.

In a nutshell for a common nigerians to benefit from mortgages the goverment and private sectors most increase their employee allowances  and also have a good data based for all adult in Nigerian and also ensure that we have effective credit bureaus to those who are not credit Worthy
cheers

I really do not know where you guys got all these information from. But, I know that mortgages are accessible at competitive rates in Nigeria. Mortgage loans could be spread over thirty years at 6%p.a. I know the Nigerian govt. has placed much emphasis on tackling the inadequate hosuing in the country. Please dearies, you may wish to open a NHF account, and access mortgage loans from there.

I do not agree with the fact that Nigerian Banks do not give loans. What I fully agree with is that Nigerian loans are not given to any Tom, Dick or Harry. You cant just come up with some stories without any structure on ground like; the market, the technical know-how, adequate planning nor collateral and expect any bank to give you loan. Before seeking for a loan, first have a structure of what you want to do with the funds. Have a repayment plan also because loans are given on the basis of thier repayment plans. Your cash flow must be strong enough to support your loan request. Most Nigerian banks are conservative unlike their American and European counterparts who have reached a level that they can afford to take risks on thier populace. Thier neglect of basic banking/lending principles have led to the universal collapse of many so called giant banks. An average Nigerian bank who tries taking high risks will have itself to blame as thier are no records here. A criminal can go through the 24 banks taking loans for the fun of it without doing something tangible with the funds. Just take a look at Ecobank who tried the credit card scheme with Nigerians. They burnt thier hands immediately because people just took the credit cards, accessed the funds and just refused to pay back. In US or UK, that cannot happen because default on loan re-payment is a grave offence, and one who does that cannot have peace. In Nigeria, it is the other way round as those who default in loan repayment (especially the high networth and connected individuals) have the most peace as they have the rest of their life to enjoy the "banks" funds without any concrete law catching up on them.
Also, there are many structures on ground to accommodate many forms of business/ personal loan request. You cant approach a bank, fresh from secondary school, requesting for agric loan at 22% and expect them to listen to you. You have to approach a bank requesting for the subsidised agric loan (from select banks). It is only then that the bankers/bank will listen to you because they will know you are not ignorant and really know what you are doing.
But to be honest, the cost of bank loans in the country is relatively high. The reason is because a lot of funds are outside the banks in Nigeria, thus, making the cost of funds high as the banks posess approx 30% of the money in circulation. This means that they can only use this 30% to finance all demands for bank loan, hence, the Nigerian banks tend to prefer big projects which give better security and returns on funds. If only Nigeriians will learn to keep thier money in the banks. Just take a walk to the markets, you will be surprised that most traders keep thier money in drawers 24/7. Same as the bus drivers, the mallams, the meat sellers etc.
Also, the almost non-existence of social,business nor personal data in Nigeria makes lending costly as it is difficult to keep track of retail loans. This makes the banks lend(retail loans) to mostly govt workers who have an assured source of repayment(salaries, terminal benefits, allowances).
My advice is "if you have a sound business plan, you may approach financial advisers or investment planners/business analysts". These professionals will first help you package your dreams well, before you approach banks for financial assistance.
Please note that select banks are better for select laons, like the micro-finance banks are better for SME loans, Specialised Mortgage banks for mortgage loans ( since the unification of banks to universal banks, pls while approaching the universal banks for mortgages, seek for thier special mortage finance reps), specialised agric bans for agric loans, BOI for industrial loans. Read-up financial articles for a better understanding of how you can access bank funds towards making your dreams bcome reality.

jay bee:

and ur maths is whack. should be <60M

54m to be precised

what we do in nigeria nothing but cash accumulation, thereby incuring unecessary charges on the poor masses with all the hidden charges attached to it on qualification for the loan disbursement. a facility you are saving for will definitely increase in price before the tenure reach.so tell me how you now save and your savings and mortgage loan cannot afford you your desired facility. this is arrant nonesense. May God help and bless us all Amen

A Nigerian spend his cash - no anything on credit, unlike developed countries where people live and die with debts, credit card debts, mortgage debts etc. I will rather own a house in Nigeria than get a mortgage on a house in London - a three bedroom flat and pay so called mortgage which many are now struggling to pay, and when you cant pay, your house gets taken. Do you realy own the house anyway.

Thats the idea. You never get to really own the house.

even with the low interest rates in the advance countries there is default, how do you expect nigerians to not to default with the high interest rates charged by banks? Average take home pay of most workers including private sector is between 12k - 150k.  22% of N10M is N2.2m somebody earning N300k which are few will earn N3.6M/Annum. how do you want such person to survive?

motgage is not economic wise so why should i be a part of it?
http://sportsdesks..com

There is a basic logic in mortgage just as there is a basic logic in banking.
In banking someone owns the money and gives to others too. No matter how rich you get you can never be a bank, you can own a bank, but not be the bank. so in similar way mortgage is a system that takes away the house from individual and in a sense place it in the hands of estate firms (just like the bank). So no one gets to really own a house.

because an average nigerian man is not stupid

The average Nigerian does not like huge debts!
Borrowing 1000Naira from Iya Sikira is one thing, borrowing 10 Million naira from the bank is another! LOL!

Living in a country where one has access to mortgage loans is a good thing.

The misconception that it is a horrible debt to have and as good as imprisonment is wrong. I used to be a loan executive and underwriter for mortgage loans. It is definitely to be desired for Nigeria to be able to come up with more programs to help average families afford their own homes. The average Nigerian cannot build his own house until after twenty or thirty years of toil and sweat. Why do you have to wait to be so old and on the brink of retirement to be able to live comfortably with your kids in your own house? Its is simply about buying a home you can afford and making your monthly payments (like you would your rent) till it is totally paid off and the great part is that you can pay more than your monthly required amount. You can actually finish paying for that home in two years if you want. A stable secure job is definitely a plus with a good credit score. Nigeria has no real way of determining the credit worthiness of potential homeowners as there are no credit bureaus in Nigeria. so i wonder how that will work out.

The problem is some people dont know how to use debt effectively and its not entirely their fault
the economy is such a bad way bank and other financial organisation cant do anything but what they are doing now-lending to teh rich
Job security is almost zero, unemployment is extremely high and the law is not enforced properly

Debt is a normal part of business, business looking to expand and spread their capital/risk take advantage of loans

property12:

because an average nigerian man is not stupid

more like the average nigerian man is not financially literate!
Do you know banks also borrow money?

Chill guys, the answer is in the question itself, cos we are not Morgage riendly simple, however the intrest rate is, people would always borrow, now for xample,if Im a 45yr Old Biz man,I decide to do research on how I could build a house with minimum cost lets say I build these house/houses on a plot measuring 50/25,this is true ie half the size of what we call 100/50 in nigeria, this is the true size of a plot where a 3 bed house is built in the UK,now I managed to build 20 units,I employ few young OND marketers on %100 commission basis ie%5 commision,the lias with local banks arround and also go into Gov ministries to seek for htose who have long serice still ie Teachers,ministry workers, bank workers etc,I decide to take a risk and makemy mortgage %100,then mayB repayment for my 3 bed house monthly would be =N=17k monthly for a worked out period of years, now would I sucedd or not?does any of this need Gov intervention if so plz point it out  and would there be a flow somewhere also plz point it out for me, Im waiting with al the answer,I know where Im driving at.

The banks are not friendly, that's Y

Mortgage cant work in Nigeria so well, a nation where there is no database for people's information, where someone can assume to be anyone at anytime and anyday.