Best Mortgage Rates Lagos Nigeria - Best Home Equity Loan Rates. Free Home Loan Tips.

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Best mortgage rates Lagos Nigeria - We all seek the best home equity loan rates available in Nigeria. And the reason is obvious.

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.

Since we all seek the best mortgage rates possible, it makes perfect sense for this Lagos Nigeria real estate investing website to devote some attention to it.

Now the big question: where can you get the best home equity loan rates?

No doubt you are familiar with the home loan interest rates in Nigeria.

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 first commercial bank I approached offered me home equity loan rates of 17.5 percent. In addition, I will be required to pay . . .

  • 2 percent management fee charged quarterly
  • 30 percent equity contribution before the home mortgage is approved
  • all legal fees charged by the lawyer or real estate attorney recommended by the bank

    . . . and all fees associated with registering the property title with the Lagos state government.

    I was pretty clear about what the bank required. So I went to another commercial bank for clarity on what they required to give me a home loan or home mortgage. I basically wanted to compare one bank versus the other to get the best mortgage rates possible.

    The second commercial bank I approached offered me home equity loan rates of 17 percent. In addition I will pay . . .

  • 2 percent management fee charged quarterly
  • 20 percent home equity contribution
  • legal fees charged by the real estate attorney recommended by the bank and
  • all title registration fees required by the Lagos state government

    I left the second bank and headed for the third.

    The customer service officer of the third bank clearly stated that it's not allowed for customers to open an account simply because they intend to secure a home loan.

  • I was prepared to move my account from my current bank to the bank that offers me the best deal. Can you imagine a bank telling me they don't want to collect interest from me because i want to secure a home loan? Does that sound like a business-oriented bank to you?

    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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    Share Your Experience With Home Mortgage In Nigeria. Recommend Financial Institutions That Offer The Best Rates And Service

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    What financial institutions offered you the best rates? What institutions declined your loan request and for what reasons?

    Please share your experience.

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