Can You Use a Mortgage to Buy an Off-Plan Property?

You find an off-plan apartment in Lagos selling for ₦60 million, while similar completed apartments in the same area are already selling for considerably more. The developer offers a payment plan, and you immediately think: “Can I just get a mortgage to pay for it?” The answer is sometimes, but not every off-plan property is automatically mortgageable. A mortgage lender is not only assessing you as the borrower; it also needs confidence in the property, developer, title, valuation and structure of the transaction.

The house may not exist yet

With a completed property, a lender can assess the physical property, its value and documentation. With an off-plan development, the lender also has to consider the developer and the project itself. HausPlenti works with developers and mortgage institutions on housing projects and has specific development-finance requirements around title, approved building plans and project documentation. So the fact that a developer advertises “mortgage available” is not enough. Ask which lender, which mortgage product and at what stage the mortgage funds can actually be released.

The developer's structure matters

Imagine a developer selling a ₦60 million apartment off-plan and asking you to pay ₦20 million over 12 months before the mortgage takes over the balance. That is very different from a lender agreeing to finance the purchase from the beginning. Some developers structure projects specifically to work with mortgage providers, while others rely heavily on buyers' instalment payments to fund construction. Before signing an off-plan agreement, find out exactly when your mortgage can be introduced into the transaction.

Understand what happens if the project is delayed

Construction may take longer than expected, specifications may change, costs may increase and the developer may face financial or regulatory problems. A mortgage does not remove the risks of buying off-plan; it only addresses the financing side of the purchase.

So, can HausPlenti help you finance an off-plan property? Potentially, yes, if the property, developer, mortgage product and transaction structure meet the relevant lender's requirements. We would first want to understand the property, developer, purchase price, payment schedule, your financial position and the documentation available. The important question isn't simply “Can I get a mortgage?” but “Can this particular off-plan property be financed with the mortgage I qualify for?”

If you're considering an off-plan property, don't pay a large deposit first and ask about the mortgage afterwards. Let the financing, property documentation and developer structure be assessed before you commit.