How to Choose the Right Mortgage for Your Property Investment

Choosing the right mortgage can make or break your real estate investment. In Nigeria, several mortgage options are available, each catering to different needs and financial situations.

1. Fixed vs. Variable Interest Rates: A fixed-rate mortgage offers stability in payments, while a variable rate could give you lower initial payments, but with the risk of fluctuating rates over time.

2. Loan Term: Shorter loan terms mean higher monthly payments but lower interest over time, while longer terms reduce monthly payments but result in more interest paid in the long run.

3. Government-backed Mortgages: Consider government schemes such as the National Housing Fund (NHF), which offers affordable loans to first-time buyers.

4. Down Payment: Most Nigerian banks require a down payment of 20% to 30%. Ensure you have a solid financial plan for this upfront cost.