How is a mortgage repayment calculated in Nigeria?

It uses the standard amortising formula M = P·r / (1 − (1+r)⁻ⁿ), where P is the loan, r is the monthly rate (annual rate ÷ 12) and n is the number of months. Each payment covers interest first, with the rest reducing the balance over the term.

What is the National Housing Fund (NHF) rate?

NHF loans, accessed through the Federal Mortgage Bank of Nigeria (FMBN), carry a concessionary rate of about 6% per year and longer tenors, but have eligibility rules and a maximum loan cap. Commercial and primary mortgage bank loans are far higher, typically 14% to 24%.

How big a deposit do I need?

Most Nigerian lenders require a 20% to 30% equity contribution, putting the loan-to-value at 70-80%. A larger deposit lowers your LTV, reduces the loan and can improve the rate you are offered.

How much income do I need to qualify?

Lenders usually cap the mortgage repayment at around a third of your gross monthly income. The calculator shows the income implied by your repayment at that 33% cap so you can sense-check affordability before applying.

What costs are not included?

This is a principal-and-interest estimate. It excludes the lender or FMBN management fee, legal and title-perfection costs, mortgage protection insurance and any further equity required — budget for these on top.

Nigeria Mortgage Calculator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

This Nigeria mortgage calculator turns a property price, deposit, interest rate and term into a monthly repayment, your loan-to-value (LTV), the total interest you will pay, and the gross income a lender expects — reflecting how Nigerian banks, primary mortgage banks and the FMBN assess a home loan.

How it works

The repayment uses the standard amortising-loan formula:

M = P · r ⁄ (1 − (1 + r)⁻ⁿ)

where P is the loan (price − deposit), r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. The LTV is loan ÷ price; Nigerian lenders generally want this at 70-80%, i.e. a 20-30% deposit. To gauge affordability, the tool also shows the gross monthly income implied by a 33% payment-to-income cap.

Rates split into two worlds: NHF loans via the FMBN at about 6% (subject to eligibility and a loan cap) and commercial loans at roughly 14-24%.

Example

A ₦45,000,000 home with a ₦13,500,000 deposit (30%) leaves a ₦31,500,000 loan. At 18% over 20 years the monthly repayment is about ₦486,000, implying a gross income near ₦1,473,000 a month to stay within the 33% cap.

Notes

Compare the NHF route if you are eligible — its ~6% rate dramatically cuts the repayment versus a commercial loan.
A bigger deposit lowers the LTV and total interest, and may unlock a better rate.
Add the management fee, legal/perfection costs and insurance to get your true cost — they are not in this estimate.