FG, FirstBank, unveil low-interest mortgage scheme to boost home ownership

FirstBank has partnered with the Ministry of Finance Incorporated (MOFI) to introduce a new mortgage product aimed at improving access to affordable housing in Nigeria.

The initiative, known as the MREIF Home Loan, is designed to address longstanding challenges in the country’s housing finance system, where prospective homeowners often face high interest rates, steep equity contributions, and limited loan tenures.

Under the scheme, eligible applicants can access mortgage financing at a single-digit interest rate of 9.75 per cent per annum, significantly lower than prevailing market rates that can exceed 25 to 30 per cent. The loan also offers a higher financing ceiling of up to ₦100 million, with a repayment period extending to 20 years.

The programme further reduces barriers to entry by allowing equity contributions as low as 10 per cent, compared to the conventional requirement of at least 25 per cent, making it more accessible to salaried individuals.

The MREIF Home Loan targets both residents and Nigerians in the diaspora seeking to acquire property in approved locations, with the aim of expanding home ownership and stimulating activity in the real estate sector.

Analysts say the initiative could help deepen Nigeria’s mortgage market, which remains underdeveloped relative to the country’s housing deficit, while also supporting broader economic growth through increased investment in housing.

The launch underscores ongoing efforts by public and private sector players to develop innovative financing solutions that make home ownership more attainable for a wider segment of the population.