Sterling Bank and Ministry of Finance team up for n100m mortgage deal

KEY POINTS

• Sterling Bank has partnered with the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to launch a long-term mortgage plan.
• Eligible Nigerians can now access home loans of up to ₦100 million with a low fixed interest rate of 9.75% per year.
• The plan allows for a long repayment period of up to 20 years, making it easier for people to pay back over time.
• To start, the fund has a ₦10 billion commitment, with plans to grow as more people apply for the scheme.

MAIN STORY

Sterling Bank has officially joined forces with the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to launch a new mortgage initiative. The move is aimed at cutting down Nigeria’s large housing deficit by making it easier for citizens to own their own homes.

The agreement was signed at Sterling Bank’s headquarters in Lagos, promising to open up homeownership to a wider range of Nigerians through cheaper financing.

Under this new deal, people can apply for mortgage loans of up to ₦100 million. A major highlight of the plan is the interest rate, which is fixed at about 9.75% per year—much lower than many other commercial loans. Additionally, homeowners have up to 20 years to finish their repayments. To make it even easier to get started, the bank only requires a 10% down payment (equity), meaning the mortgage covers up to 90% of the house’s value.

David Adebayo, Vice President of Consumer Banking at Sterling Bank, said the partnership shows the bank’s commitment to helping Nigerians own homes in a way they can afford. Mounir Bouba from ARM Investment Managers, who manages the fund, added that this public-private cooperation is key to solving Nigeria’s housing challenges. The program is open to salary earners, business owners with good records, and even Nigerians living abroad.

WHAT’S BEING SAID

• “By combining competitive pricing with longer tenors… we are lowering the barriers to homeownership,” said David Adebayo, Vice President at Sterling Bank.
• Mounir Bouba of ARM Investment Managers noted that the deal helps “catalyse private capital” to fix the housing shortage.
• The bank emphasized that the plan is built for “salary earners, business owners, and Nigerians in the diaspora.”

WHAT’S NEXT

• Application Window: Both new and existing Sterling Bank customers can begin applying for the facility through the bank’s mortgage portals.
• Fund Expansion: While the starting commitment is ₦10 billion, managers plan to increase this amount as more Nigerians sign up.
• Property Partnerships: Sterling Bank is expected to work with real estate developers to list homes that qualify specifically for this 90% financing deal.

BOTTOM LINE

The Bottom Line is that Sterling Bank and the Ministry of Finance are making it cheaper to stop renting and start owning. By offering a 9.75% interest rate and a 20-year window, they are removing the high costs that usually stop Nigerians from getting a mortgage.

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