A COMPLETE GUIDE ON THE BEST MORTGAGE PROVIDERS IN KENYA
Most would agree that owning a house in Kenya today is a significant accomplishment. However, it's expensive and quite a challenge.
The cost of land keeps rising, construction material prices are through the roof, and there's more.
Now, imagine a way to make owning your dream house a reality, regardless of your net worth.
That's where a mortgage comes in! This guide includes:
What a mortgage means
What's needed to get a mortgage
Where to find an affordable mortgage
Top mortgage providers in Kenya
What is a mortgage?
A mortgage is a loan offered by banks and other financial institutions to home buyers. The property is used as collateral for the loan. Most banks will require a 20% down payment to get started.
One advantage of taking a mortgage is that with each payment, you gradually own a piece of the property. This differs from paying rent, where ownership doesn't accumulate.
Taking a mortgage divides property ownership into two parts: equity (what you own) and debt (what the bank owns). With each mortgage repayment, you increase your equity, aiming to own the property by the end of the amortization period.
Another benefit of a mortgage is the potential to increase the property's value. For instance, if you take a 4,000,000 Ksh mortgage and sell the property for 7,000,000 Ksh, you'd profit 3,000,000 Ksh, paying the bank only what you owe them, without sharing the profit.
Types of mortgages in Kenya:
There are two types based on the rate paid on the loan:
a) Floating rate mortgage: Also known as a variable or adjustable-rate mortgage, this type fluctuates based on market rates. The mortgage rate changes with the market, potentially cheaper but riskier compared to fixed rates.
b) Fixed-rate mortgage: This mortgage type has a constant interest rate throughout the loan term. Safer but often more expensive compared to variable rates, with a risk of being locked into a higher rate if interest rates fall.
Types of loans you might be offered:
To cater to different borrowers, financial institutions offer varied loans, including:
Owner-occupied residential mortgage
Investment residential mortgage
Construction loan for building from the ground up
Equity loans using accrued equity for extra funds, usable for various purposes.
Top mortgage providers in Kenya:
Here are some with their average annual interest rates, though these figures are estimates and may change over time:
NCBA Bank 9.5% to 9.9%
Housing Finance Group: 12.2%
Standard Chartered Bank: 12.5%
Citibank Kenya: 12.9%
Commercial Bank of Kenya: 13.3%
KCB Bank: 13.4%
CFC Stanbic Bank Kenya: 14.4%
Barclays Bank of Kenya: 14.9%
Co-operative Bank: 15.1%
Consolidated Bank: 15.4%
Please note: The figures are estimates and may vary over time.
Fanaka Real Estate and NCBA Partner to Simplify Your Homeownership Journey
Owning a home in Kenya is a dream for many, but navigating the process of financing can often feel like an obstacle course. Fortunately, there's good news for aspiring homeowners! Fanaka Real Estate Ltd., a leading real estate company based in Nairobi, has partnered with NCBA, one of Kenya's most respected banks, to streamline the financing process and make your dream home a reality.
Why This Partnership is a Game Changer:
Simplified Financing: Fanaka Real Estate's experienced team will work closely with NCBA to guide you through the entire financing process. They will help you understand your eligibility for different mortgage products and navigate the paperwork, saving you time and hassle.
Competitive Rates: Through NCBA's extensive portfolio of mortgage products, you're more likely to secure a loan with attractive interest rates and flexible repayment terms that suit your budget.
One-Stop Shop Convenience: Having both your real estate agent and lender under one roof eliminates the need to coordinate between different parties. This streamlined approach ensures a smoother and more efficient home buying experience.
Expert Guidance: Fanaka Real Estate's market knowledge combined with NCBA's financial expertise empowers you to make informed decisions throughout the process. You'll benefit from valuable insights into the property market and personalized guidance on securing the best possible mortgage deal.
Contact Fanaka Real Estate: Email them through [email protected]
Through the partnership, the Bank will provide mortgage loans to both salaried and non-salaried customers of Fanaka Real Estate. Salaried buyers will benefit from payment terms extending up to their retirement age, while non-salaried customers will enjoy terms up to the age of 65.
In addition, the Bank will offer the Buy and Build financing option, covering up to 100% of the costs. This facility allows customers to purchase a piece of land and construct a home simultaneously, making the process seamless and efficient.
For those who already own land, the Bank's construction solution will help turn their vision into reality. This comprehensive support ensures that all customers have the financial tools needed to achieve their real estate goals.
Why You Should Take Advantage of This Partnership:
Reduced Stress: The combined efforts of Fanaka Real Estate and NCBA take the weight off your shoulders. You can focus on finding your dream home while they handle the complexities of financing.
Faster Approval: Streamlined communication between the realtor and lender can expedite the loan approval process, allowing you to move into your new home sooner.
Increased Access to Properties: With NCBA's backing, you may be eligible for mortgages that open doors to a wider range of properties, giving you more choice in your home search.
Don't let the challenges of financing hold you back from achieving your dream of homeownership. With Fanaka Real Estate and NCBA as your partners, the path to owning your own home is clearer and more accessible than ever. Contact Fanaka Real Estate today and take that first step towards turning your dream into reality.
Should you need to start or require more information about the partnership and how to get started with either a plot purchase loan, buy and build product, or the easy build option from NCBA, feel free to reach out to us through [email protected].
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