FirstBank of Nigeria has introduced the Mortgage Refinance and Equity Investment Fund (MREIF) Home Loan, a mortgage financing solution designed to expand access to homeownership for Nigerians, particularly middle-income earners seeking more affordable financing options.
The initiative is aimed at addressing the country’s housing affordability challenge by offering mortgage financing at a single-digit interest rate while lowering the entry barrier for prospective homeowners.
Under the scheme, eligible applicants can access mortgage financing at an interest rate of 9.75 percent per annum, a significant departure from the double-digit lending rates commonly associated with mortgage financing in Nigeria.
Industry analysts say the reduced interest structure could make homeownership more attainable for many Nigerians who have historically struggled to secure affordable mortgage loans.
The programme is structured to allow individuals transition from rent payments to structured homeownership through manageable repayment plans, enabling borrowers to spread payments over an extended period while gradually building equity in their homes.
Housing experts note that mortgage financing plays a critical role in expanding homeownership by providing individuals with access to long-term capital required to purchase residential properties.
Another key feature of the MREIF Home Loan is its relatively low equity contribution requirement.
Unlike conventional mortgage structures that often require homebuyers to provide between 30 percent and 40 percent of the property value as an initial deposit, the MREIF programme requires only 10 percent equity contribution from borrowers.
This means that a property valued at ₦100 million would require an upfront contribution of ₦10 million, significantly reducing the financial burden for prospective homeowners.
The programme also extends opportunities to Nigerians living abroad, allowing members of the diaspora to access the mortgage facility subject to eligibility requirements and credit verification through recognized international credit agencies such as Equifax.
By allowing diaspora participation, the initiative provides an additional pathway for Nigerians abroad to invest in residential properties in the country while maintaining ties to the domestic real estate market.
Experts believe that expanding mortgage access to the diaspora community could support housing development while increasing investment inflows into Nigeria’s real estate sector.
The introduction of the MREIF Home Loan aligns with broader efforts to strengthen the housing finance market and encourage long-term property ownership.
Financial institutions have increasingly explored mortgage solutions as part of broader strategies to deepen financial inclusion and stimulate growth within the real estate sector.
For many Nigerians, the availability of lower-interest mortgage financing could represent a practical step toward transitioning from long-term rent payments to property ownership.
FirstBank said interested individuals can visit its official website or contact its mortgage advisory team to learn more about eligibility requirements and application procedures for the MREIF Home Loan programme.
