If you've been looking at mortgages in Nigeria, you may have heard about the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) and its 9.75% mortgage rate. One of the biggest questions we get is simple: “How much can I actually borrow?”
- Mortgages of up to ₦100 million through participating lenders
- Repayment periods of up to 20 years
- Minimum equity contribution from 10%, depending on the lender
- Fixed rate of 9.75% per annum
- Instalment-to-income limit of 35%
But ₦100 million is a maximum loan amount, not an automatic entitlement. Your income, existing debts, age, employment status, credit profile, property and the lender's assessment will determine how much you can actually access.
Put the ₦100 million figure into perspective
At the published MREIF rate of 9.75% per annum, a ₦100 million mortgage over 20 years would have an indicative monthly repayment of roughly ₦957,000, before considering applicable fees and insurance. That means someone earning ₦1 million a month should not read “MREIF offers up to ₦100 million” and assume they can borrow ₦100 million. The maximum advertised loan and the amount you can comfortably qualify for are two different things.
Your equity affects the property you can buy
MREIF's current programme information states that the minimum equity contribution has been reduced to 10%, while some participating lenders may have different terms. At a simple 10% equity level, a ₦60 million property could require ₦6 million in equity and approximately ₦54 million in mortgage financing. A ₦100 million property could require ₦10 million in equity and ₦90 million financing. But you should also budget for valuation, legal, insurance, title perfection and other transaction costs.
Don't calculate your required cash as simply “10% of the property price.”
The property itself can decide availability
Current government information says the programme finances completed residential properties intended for owner occupation and does not finance undeveloped land. Borrowers still go through credit assessment, property valuation and legal title verification. This is particularly important if you've found an off-plan development or a property with complicated documentation. Before paying a developer or seller, confirm that the particular property fits the mortgage product you intend to use.
MREIF is the funding; the bank is the lender
MREIF provides long-term capital through participating financial institutions, which then originate the mortgages and carry out the borrower and property assessment. That means requirements can vary between participating lenders. For example, Stanbic IBTC currently advertises a maximum MREIF loan of ₦100 million, while Union Bank also advertises up to ₦100 million but lists different equity and eligibility conditions. So don't ask only, “How much does MREIF offer?” Ask, “How much can I qualify for through the lender and mortgage structure that fits my situation?”
At HausPlenti, if you tell us you want a ₦100 million MREIF mortgage, our first job isn't to promise you ₦100 million. We assess your income, existing obligations, available equity, employment or business profile and the property you're considering, then help you understand your realistic financing range.
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Check Your HausPlenti Mortgage ReadinessTerms, eligibility requirements and loan limits vary by participating lender and may change. Figures above are illustrative and do not constitute a mortgage offer or approval.