FirstBank and MREIF Launch 9.75% Mortgage Loan in Nigeria

In Short

• FirstBank and the MOFI Real Estate Investment Fund, MREIF, have opened a home loan scheme for eligible Nigerians.
• The mortgage offers a fixed 9.75% interest rate and up to 20 years to repay.
• Borrowers can access up to ₦100 million, with a minimum 10% equity contribution.

What Happened

FirstBank says its FirstBank-MREIF home loan scheme lets eligible Nigerians finance completed residential properties at a fixed 9.75% annual interest rate, with repayments stretching up to 20 years.

The bank shared the details during a webinar focused on moving renters into home ownership. A mortgage is a long-term home loan, often paid monthly, secured by the property itself.

Applicants can borrow up to ₦100 million, depending on income, age, and repayment capacity. The scheme requires at least a 10% equity contribution, which is the buyer’s upfront payment.

Eligible contributors can also use up to 25% of their Retirement Savings Account balance to top up that contribution. A Retirement Savings Account is a pension account where monthly retirement contributions are saved.

FirstBank said it will apply a debt service ratio, which is a cap on how much of a borrower’s income can go to loan repayments, so borrowers still have money for other expenses. Couples can apply jointly so both incomes are counted.

For now, the scheme only finances completed homes that are purchased outright. The property must also have valid and verifiable title documents before it can be financed.

Why It Matters

Nigeria’s housing deficit is estimated at over 20 million homes, while annual housing delivery is around 100,000 units, according to MREIF’s national coordinator. If the scheme scales, cheaper and longer-tenor mortgages could expand access for salaried workers, families, and diaspora buyers who can prove title.

The fund backing also matters. MREIF said its first ₦250 billion tranche includes ₦150 billion from the federal government and ₦100 billion from private investors, under a ₦1 trillion programme registered with the Securities and Exchange Commission.

For property developers and lenders, the focus on completed homes and verified titles could push more standardisation in housing documentation. It may also reduce the risk of buyers financing unfinished projects that stall.

For fintech and proptech operators, this is another signal that formal mortgage products are trying to compete with informal “pay small small” housing models. The next question is whether more banks will join the fund to widen coverage and speed up housing delivery.