What is Mortgages, it's advantages and disadvantages

The Lagos state governor have recently signed the mortgage bill into law, hence we need to take a look at the opportunities available for us in owning our homes through mortgages especially when it has been successfully done in other countries and has greatly reduced their housing needs compare to Nigeria.
Read excerpts from Guardian Newspaper-
(LAGOS—Governor Babatunde Fashola of Lagos State yesterday signed into law the bill for a law establishing the state mortgage board aimed at making houses affordable to the masses.
Fashola, who also inaugurated members of the board at a brief ceremony at Lagos House, Ikeja, disclosed that plans were underway to ensure that efficient lowcost houses were made available for Lagos residents on a proposed mortgage policy, which would be unveiled next week.
The board is chaired by the state Commissioner for Finance, Mr. Rotimi Oyekan, with his colleague in the Ministry of Housing, Mr. Dele Onabokun, and three others as members.
According to Fashola, the passage of the law is a momentous achievement for the state because it will serve as the regulatory framework for the creation of enabling policy that will guide government and private sector in establishing mortgage schemes that will be beneficial to all residents.
Fashola, noted that with the new law, the Conveyance Act of 1881 had been repealed.
The governor added that the 119-year old law had always posed challenges to legal practitioners dealing with mortgage matters.
Fashola, who said details about the bank would be unveiled at a public forum in the next few days, noted that workers and residents of the state would be able to access facilities to build a home of their own.)

Most home buyers have to borrow money in order to purchase their home. Few have enough money sitting in the bank, or in other easily saleable assets, to pay the entire cost of the home at once. (Even those few who do have enough money usually find it financially advantageous – perhaps for extra tax relief — to borrow some of the money.) The home loan they receive is called a “mortgage.” Generally, a mortgage is a loan of money to the home owner secured by a “lien” on the real estate.
In most countries, a mortgage is the primary way that prospective homeowners have of buying a house, flat or land on which to build a property, collectively called real estate. This type of mortgage is called a residential mortgage or home loan. They are most often taken up by individuals or couples.
Mortgages are also commonly used for commercial property, such as offices, factories, retail outlets or building containing multiple units such as office blocks, shopping malls and warehouses. This type of mortgage is called a commercial mortgage or commercial property loan. They are most often taken up by businesses rather than individuals, although individual investors may also purchase commercial property.
The prospective buyer will borrow money from a bank, credit union or other financial institution – the mortgage lender – and use that money to fund some, most or all of the cost of the purchase. They will then pay the money borrowed – the principal – over time, together with an interest payment. The property bought provided as security for the mortgaged amount. So, if they do not pay the money on the agreed schedule, that is if they default on the loan, the lender has the right to take possession of the loan as a foreclosure.
Mortgages nowadays are typically associated with real estate, although they did historically cover property in general, including crops, factory equipment, ships and trains.
The term mortgage derives from the French term ‘dead pledge’. This means that the mortgage agreement ends when the loan is paid off, or when the property is taken into foreclosure.
In most legal systems, the borrower has legal right to the real estate, but the lender has legal rights to enforce ownership of the security if the loan falls delinquent, he can sell the property or take ownership and rent it out.
Also Read these articles and all the links.
For Your Mortgages contact-
Mrs Adeleye, she is a Real Estate Agent on the Lagos Island. She can help you get plots of land, let your properties and get a property under mortgage in Nigeria.
She is also a Qualified UK Mortgage Broker. contact her for mortgage, loan & insurance in the UK and Nigeria.
Mrs Olubola Adeleye
Suite 105 Pearl Plaza,
Thomas Estate,After Doren Hospital,
+2347065221108 or 07087499733.
An architect with decades of experience


  1. Unfortunately, your article does not address any information specific to mortgages in Lagos State (or Nigeria)…

    1. Oh yes, this is just an opener for us to start thinking about it. Mortgage is wide so I gave an address of an expert above if you really needs to know more. Subsequently I will write more on it. thanks

Leave a Comment

Your email address will not be published. Required fields are marked *