Exploring Mortgage Options for Home Buyers in Nigeria
May 21, 2024
Being a home buyer in Nigeria, one knowledge you should have at the tip of your fingers would be the understanding of mortgage loans. What a mortgage does for you is that it allows you to get a loan from a bank or financial institution to purchase a house or land. You would be required to pay back this money through regular payments known as mortgage payments, which include the principal (the amount borrowed to purchase the property); the interest (the cost of borrowing the initial amount); and the taxes (property taxes or insurance, which may be included in the regular payment). Here are the steps to buying a mortgage property in Nigeria:
You must make sure to study different mortgage plans and stick with plans that are affordable. Despite the fact that a mortgage could be paid over a period of time, you should not jump into any plan that seems enticing. What you need to do is study the plan and its periodic payments and see if they comfortably fit into your monthly income. This is to ensure that there are no lapses in payment when the time comes. You can also make use of mortgage calculators available on bank websites to estimate monthly payment amounts.
One thing you should be very particular about is saving for a down payment as early as possible. This is because when applying for a mortgage, one thing the bank would strongly consider is your financial standing at the point of applying for the mortgage. Also, you would be required to make a deposit, which varies depending on the seller of the property. All of this is to solidify your standing at the point of purchasing the property. Your financial standing also relates to your credit score, which should be verified as reliable based on your credit history by paying bills on time and managing your debts responsibly.
In all of these, do not miss the point where you study mortgage plans and properly access their interest rates. As earlier mentioned, your periodic mortgage payment includes the principal, interest, and taxes. The interest has a huge impact on the periodic payments you make, and to be on the safe side, you need to compare the interest rates from different institutions that offer mortgages and be sure to secure the best deal.
Mortgage services are very accessible for the typical Nigerian as long as the individual in question, which may be you, has the financial requirement to take on this payment plan. This is quite different from rental services because, after you complete the payment, you have the security of claiming ownership of the property in question, whereas a rental property does not ever end up being yours even after periods of periodic payment. This is to bring to your knowledge that a mortgage is a more efficient venture than a rental service, and it is worth it as long as you can shoulder the responsibilities.