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Construction finance
Finish the house on your land, one inspected stage at a time.
For land you already own with a registered title and approved plans. We release money in four stages as your builder reaches each level, so the money and the work move together.
Who it suits
Landowners whose building has stalled, or who want to start right.
Many homes in Lagos and Ogun sit at foundation or lintel level for years. Construction finance pays your builder directly at each stage after our surveyor signs it off.
- Four stage releases: foundation, lintel, roof, finishing
- Our surveyor visits before every release
- Interest only while you build, full repayments after
- Works with your builder or one from our list
How it works
Step by step, with typical times.
- 17 days
Title and plan check
We confirm your land title and the approved building plan.
- 25 days
Bill of quantities
Your builder prices the work; our surveyor checks the figures are fair.
- 3Weeks 1 to 6
Stage one: foundation
First release paid to the builder once the site is set out and the foundation poured.
- 4Weeks 7 to 20
Stages two and three
Lintel and roof releases after each inspection, with photos sent to you.
- 5Weeks 21 to 30
Finishing and switch over
Final release for finishing. Your full repayments start the month after.
Worked example
What it looks like in naira.
An illustration using example figures. Your own rate and repayment are confirmed in your offer letter.
- Price of the home
- ₦38,000,000
- Your deposit
- ₦11,400,000
- Loan
- ₦26,600,000
- Example rate
- 20.0% a year
- Term
- 15 years
- Monthly repayment
- ₦467,175
What the repayment covers
Each month part of your payment clears interest and part reduces the loan. In the early years more goes to interest; by the last third of the term most of each payment cuts the balance.
The figure includes building insurance and life cover on the balance. It does not include service charges for an estate or your own contents insurance.
Example details for this demo.
What you will need
Documents, gathered once.
Title and survey
Certificate of occupancy or governor's consent, plus a registered survey plan.
Approvals
Approved building plan and a bill of quantities from a registered quantity surveyor.
Identity and income
Photo ID, six months of statements and proof of income for repayments after the build.
In pictures
Stages we finance on a typical bungalow (example photos).
Questions
Asked often about this mortgage.
Do I need to own the land outright?
Yes. The land must be fully paid for and titled in your name. If it is under a family title, talk to us first.
Can I use my own builder?
Yes, as long as they can show two finished projects and agree to stage inspections.
What if the cost goes up during the build?
We build a 10% contingency into the budget. Larger increases are reviewed with you and your builder.
When do repayments start?
You pay interest only on what has been released while building, then full repayments from the month after completion.
How long can the build take?
Up to 12 months. Most bungalows finish in seven to nine months.
Related
You might also look at.
Home purchase mortgage
Buy a finished home or a unit from an approved developer, with as little as 20% down.
Refinance and equity release
Move an expensive loan to us, or raise funds against a home you already own outright.
Have a half-built house?
Bring your plans and title. We will tell you what it takes to finish.