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The short answer
Nigerian banks rarely sell a product called a “home equity loan”, but many will lend against a house you own as collateral for a secured term loan or business facility, usually lending well below the property’s forced-sale value. You need clean, registrable title such as a Certificate of Occupancy or a registered deed, and the mortgage over the property must be properly perfected, which takes time and costs money.
How borrowing against property works in Nigeria
In countries with deep mortgage markets, homeowners can take a second loan against the value they have built up in their house. In Nigeria most homes are bought or built with cash, so the idea of equity release is less familiar. What does exist is the use of property as collateral: you pledge your house, and the bank lends you a sum for business or personal use. The bank’s security is a legal mortgage or charge over the property.
Product names vary. Look for secured term loans, asset-backed loans, or business overdrafts and term loans secured on property. Stanbic IBTC’s site, for example, lists secured term loans with tenors of up to 7 years. Ecobank Nigeria lists mortgage, personal and cash-backed loans on its loans page. For the general list of what banks take as security, see collateral Nigerian banks accept.
How much a bank will lend
Banks do not lend the full value of a house. They have it valued by an approved estate surveyor, who usually gives an open market value and a lower forced-sale value (what it might fetch in a quick sale). The bank then lends a proportion of that, called the loan-to-value (LTV) ratio, and also checks that your income or business cash flow can repay. Banks set their own LTV limits and do not generally publish them; ask.
Example only. A house in Ibadan is valued at ₦40,000,000 open market and ₦28,000,000 forced-sale. If a bank lent 50% of forced-sale value, you could borrow up to ₦14,000,000, subject to your ability to repay. Borrowing ₦10,000,000 at an example rate of 32% a year over 60 months would cost about ₦335,926 a month, about ₦20,155,531 in total.
Title and documents banks want
- Good title. A Certificate of Occupancy, a registered deed of assignment with the Governor’s consent, or another title the bank accepts. See title documents mortgage lenders accept.
- Search report. A search at the state land registry showing the property is in your name and free of other charges.
- Valuation report. From a surveyor on the bank’s panel, at your cost.
- Building approvals. Approved building plans, where the bank asks.
- Income evidence. Statements, accounts or payslips, as for any loan.
- Spousal or family consent. Where others live in or have an interest in the property.
Perfecting the mortgage
Before releasing funds, the bank will want its mortgage over your house properly created and registered, so its claim ranks ahead of others. This usually involves a mortgage deed, consent from the state, stamping, and registration at the land registry. In Lagos, the Mortgage and Property Law 2010 includes a section on the filing of mortgage instruments (section 53) and sections on the mortgagee’s powers, including sale and appointing a receiver (section 35). Perfection costs and timelines vary by state; ask the bank for an estimate in writing before you start.
Uses and risks
| Use | Makes sense when | Risk |
|---|---|---|
| Expanding a business | Cash flow from the expansion can cover repayments | If the business fails, the house is at risk |
| Building or finishing another property | Rent from the new property covers payments | Delays in building leave you repaying with no income from it |
| School fees or medical bills | A short, clear repayment plan exists | Long-term debt on a short-term need |
| Paying off expensive debt | The new rate is clearly lower in total | Turning unsecured debt into debt secured on your home |
The core risk is simple: if you cannot repay, the lender can enforce against your house. Read mortgage default and foreclosure before you pledge a family home.
Alternatives to pledging your home
Before using a family house as security, consider whether another route meets the need with less at stake: a cash-backed loan against savings or a fixed deposit, a vehicle or equipment loan secured on the asset being bought, a cooperative loan, or simply a smaller unsecured loan repaid faster. For a business, invoice or contract finance may fit better than property-backed borrowing; see contract finance.
What to check first
- Confirm your title is in your name and registrable, and fix any gaps first.
- Ask two or three banks what they lend against property and on what LTV.
- Get the full cost: interest, management fee, valuation, legal and perfection costs.
- Work out repayments from income you can rely on, not from hoped-for profits.
- Ask how the bank releases the title when the loan is repaid.
Where Pryme fits
Pryme does not lend against property. For smaller everyday spending with Spaces merchants, Loans on Spaces from Solid Allianze MFB are offered on how your account is run, with the full agreement shown for you to accept before anything is drawn, and no house at stake.
Questions people ask
Can I use my house as collateral for a loan in Nigeria?
Yes. Many banks accept property as collateral for secured term loans and business facilities, if the title is good and the mortgage can be perfected.
How much can I borrow against my house in Nigeria?
Banks lend a proportion of the valuer’s figure, often based on forced-sale value, and only what your income can repay. Ask each bank for its loan-to-value limit.
Can I borrow against a house with only a survey plan or receipt?
Most banks want registrable title such as a Certificate of Occupancy or a registered deed with Governor’s consent. A survey or purchase receipt alone is rarely enough.
What happens if I cannot repay a loan secured on my house?
The lender can use its remedies under the mortgage deed and state law, which may include selling the property. Speak to the lender early if you are falling behind.
Sources
- Stanbic IBTC: personal products pages (navigation lists secured term loans with tenor up to 7 years) · accessed Oct 2026
- Ecobank Nigeria: Loans · accessed Oct 2026
- LawGlobalHub: Mortgage and Property Law of Lagos State 2010 (contents) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.