In a major shift for Nigeria’s housing finance space, FirstBank of Nigeria has unveiled a new mortgage product under the MREIF scheme, offering significantly lower interest rates and more flexible terms for prospective homeowners.
The initiative, launched in partnership with the Ministry of Finance Incorporated, is designed to ease the long-standing barriers associated with homeownership in the country.
For years, Nigerians seeking mortgage loans have faced steep conditions, including high interest rates—often as much as 20 percent per annum—limited loan ceilings, and equity contributions of 30 percent or more. These constraints have placed homeownership out of reach for many.
However, the newly introduced MREIF Home Loan offers a single-digit interest rate of 9.5 percent per annum, with loan amounts of up to ₦100 million and repayment periods stretching up to 20 years.
Industry observers say the scheme represents a significant departure from traditional mortgage structures, particularly with its reduced equity contribution requirement, which can be as low as 10 percent.
The mortgage product is targeted primarily at salaried individuals, including Nigerians in the diaspora, who are seeking to acquire homes in approved locations nationwide.
Analysts note that the combination of lower borrowing costs, higher loan limits, and longer repayment tenures could stimulate demand in the real estate sector and provide a more practical pathway to homeownership.
With the rollout of the MREIF-backed mortgage, stakeholders say Nigeria may be entering a new phase of housing accessibility, offering hope to thousands of aspiring homeowners previously priced out of the market.
