LAGOS, NIGERIA — The Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF) has unveiled new mortgage terms designed to make homeownership more attainable for millions of Nigerians. In a landmark move, the minimum down payment has been reduced from 20% to just 10%, while the fixed mortgage interest rate has been lowered from 12% per annum to 9.75% per annum.
This policy shift, part of the Federal Government’s Renewed Hope agenda, tackles one of the biggest barriers to homeownership — the high initial equity contribution. With this change, more Nigerians can move from renting to owning their own homes.
The revised terms apply to MREIF’s long-term mortgages with repayment periods of up to 20 years, combining lower upfront costs, reduced interest rates, and extended tenure to ease the financial burden on households.
Dr. Armstrong Takang, CEO of MOFI, stated:
“These new terms reflect our mission to build a sustainable and inclusive housing market. By reducing the down payment and maintaining a low interest rate, we are removing major barriers to homeownership and creating a pathway to a brighter, more secure future for families across Nigeria.”
Wale Odutola, Group CEO of ARM, fund managers for MREIF, added:
“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.”
Beneficiaries can also use funds from their Retirement Savings Account (RSA) to cover the down payment, further reducing entry barriers.
Learn more at: https://www.arm.com.ng/mreif-about-mreif/
