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

The ministry of Finance Incorporated Real Estate Investment Fund (MREIF), a key driver of affordable homeownership in Nigeria, has announced a major reduction in its mortgage requirements.

The minimum down payment for an MREIF mortgage has been halved from 20 per cent to just 10 per cent, making it easier for more Nigerians to achieve their dream of owning a home.

This change is complemented by a sustained fixed interest rate of 9.75 per cent per annum.

The revised terms for the fund scheme, managed by ARM Investment Managers, are designed to address the financial constraints faced by many aspiring homeowners. By significantly lowering the entry barrier, MREIF and its group of financial partners are fostering a more inclusive and accessible housing market.

Commenting on the development, the group CEO of ARM, Wale Odutola stated that, “Our role as fund managers is to ensure MREIF operates as a credible vehicle for lasting impact. The reduction in the down payment, alongside the competitive interest rate, is a strategic move to empower more Nigerians.

“This is a testament to the power of a public-private partnership that is genuinely focused on delivering tangible solutions and contributing meaningfully to Nigeria’s economic progress.”

The new terms are expected to accelerate the transition from renting to owning, providing financial stability and long-term security for countless Nigerian families.

It is important to note that the down payment for the selected property can also be funded from the pension accounts (RSA) of willing beneficiaries, further reducing all barriers to participation in the scheme.