By:ThinkBusiness Africa
In a real estate market where double-digit inflation and high commercial lending rates have long made homeownership a distant dream, a new path has opened for Nigerians. The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) is officially bridging the gap, offering fixed, single-digit interest rates to prospective homeowners.
Managed by ARM Investment Managers, the N1 trillion fund is designed to bypass the traditional 25%–30% interest rates seen in commercial banks, providing a steady 9.75% per annum rate for qualified buyers.
Securing a mortgage through the MREIF is not a direct “government handout” but a structured financial process. Here is how you can navigate the path to your own front door:
- Verify Your Eligibility: The fund is open to Nigerian citizens, including those in the diaspora. To qualify, you must: Be between 21 and 60 years old (or within your official retirement age); Have a verifiable and steady source of income; Maintain a clean credit history with no record of returned cheques.
- The MREIF isn’t for “buying land” or “self-building.” It is specifically for completed or nearly completed residential properties.
- Action: Visit the official MREIF portal or check with partner developers to select a home. These properties usually come with pre-verified titles (C of O), saving you legal headaches later.
Prepare Your 10% Equity
One of the fund’s biggest advantages is the low entry barrier. While most banks demand 20% to 30% upfront, the MREIF requires only 10% equity.
Under current guidelines, you can utilize up to 25% of your Retirement Savings Account (RSA) balance to fund this 10% down payment.
MREIF provides the liquidity, but you apply through Eligible Financial Institutions (EFIs). Major players include Stanbic IBTC, Access Bank, FirstBank, and FCMB.
Once your chosen bank verifies your “Debt Service Ratio” (your monthly repayment shouldn’t exceed 40% of your income), the loan is disbursed. The rate is fixed, meaning even if market rates spike in 2027 or 2030, your 9.75% remains unchanged for the duration of your tenure (up to 20 years).
The fund’s maximum loan limit is N100 Million (though some special categories may reach N200 Million), making it accessible for everything from studio apartments for young professionals to family homes in the suburbs.
