Best Mortgage Rates Lagos Nigeria - Best Home Equity Loan Rates. Free Home Loan Tips.
The lower the interest rate you have to pay to secure home mortgage, the less the amount you will need to pay to your bank. In fact, the higher the amount of money you can collect from your bank.
Commercial banks typically charge two digit interest rates for home mortgage when Nigeria real estate investors who are customers to these banks secure home loan from them.
Just to be clear . . . what are the current mortgage rates offered by commercial banks in Nigeria? And what are the best mortgage rates customers can expect from commercial banks?
Well, as at the time of this writing, many commercial banks had home mortgage rates or home equity loan rates as high as 22 percent.
Here is my experience when I approached some commercial banks in Lagos Nigeria in 2010 in search of the best mortgage rates possible.
The fourth bank was even worse.
The customer service officer told me they were not giving loans at the time of my inquiry.
This happened at the time when banks were being called to account for how they have used depositors money by the new central bank governor, Lamido Sanusi. And many banks were obviously found wanting.
Now let's work with the two data stream on home mortgage rates from the two banks mentioned above.
The second bank obviously offers a better deal. The home equity contribution required is smaller (20% versus 30% for the second bank and the interest rate is slightly lower (17% versus 17.5%).
However, be sure to read between the fine lines and ask to be told all the 'hidden' fees associated with a home loan before you commit yourself.
The Best Home Equity Loan Rate - The Federal Mortgage Bank
The federal mortgage bank of Nigeria still offers the best mortgage rates in Nigeria.
The last time I checked, the home equity loan rates for home mortgage offered by the federal mortgage bank, under the National Housing Fund (NHF), was 7 percent.
This single digit interest rate is far better than the double digit interest rates charged by commercial banks offer home loans to their customers.
How do you access the mortgage loan offered under the national housing fund?
You start by opening a mortgage account with a recognized and reputable mortgage institution like those run by banks (e.g. Intercontinental Homes). Then you fund your account through regular deposits, month after month.
After operating the account for a minimum of six months, you can then apply for a mortgage loan under the national housing fund scheme and through the mortgage institution.
You can visit the nearest mortgage institution, your preferred mortgage bank or the federal mortgage bank, for specific details.
Last updated: February 15 2011
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