Federal Gov’t Lowers Mortgage Rates, Reduces Down Payments For Home Ownership

The Federal Government, through the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), has announced a significant reduction in mortgage requirements to promote affordable homeownership in Nigeria. The minimum down payment for MREIF mortgages has been halved from 20% to 10%, making it easier for Nigerians to own a home.

The fixed interest rate has also been sustained at 10% per annum, with revised terms managed by ARM Investment Managers. This move aims to address financial constraints faced by aspiring homeowners and lower the entry barrier into the housing market.

CEO of ARM, Wale Odutola, emphasized the importance of this initiative in empowering Nigerians and fostering an inclusive and accessible housing market. The reduced down payment and competitive interest rates are expected to accelerate the transition from renting to owning, providing financial stability and security for many Nigerian families.

It is worth noting that the down payment can also be funded through pension accounts, further reducing barriers to participation in the scheme.