Provision of affordable housing to all citizens of Kenya is a very complex task, which one of the ways to achieve it is through mortgage loans. Even though there are different loans, loan apps, private money lenders in Kenya, financial institutions offer martgage loans to the average Kenya citizen to help towards the provision of houses.
Mortgage loans allow individuals to own a home or property. The financial institution would pay the price of the home off and repayments made by the borrower till he/she gets full ownership of his/her dream house.
- What are mortgage loans?
- How to apply in Kenya
- Mortgage Loan Providers
- Financial Institution that offer mortgage loans
- Mortgage Loan Maturity
- Preparation for mortgage loans
- Guidelines for mortgage loan process
- How to repay mortgage
What are mortgage loans?
Mortgage loans are loans offered by financial institutions, mainly banks to own a home or a property. The financial institution will settle the property owner and in return take the title of the home till the borrower makes the final repayment. Upon final repayment, the borrower takes full ownership of the house.
How to apply for a mortgage loan in Kenya
In applying for a mortgage loan, there are step-by-step procedures to follow and they include:
- Fill out a mortgage application form(s) and cross check all details before submission
- Choose a lender or bank.
- Get a loan estimate form from the lender you chose. Review the loan estimates, additional payments and interest
- Assemble and submit your documents and other loan paper works
- Start your loan processing and make other necessary corrections
- Signing and underwriting begins. Here more documents could be requested by the lender for more clarity. Endeavour to provide all
- Approval and loan clears to close.
Primary mortgage loan providers in Kenya
The primary loan providers in Kenya are:
- Commercial banks
- Microfinance banks
- Sacco (financial and non-financial co-operatives)
List of banks that offer mortgage loans in Kenya
Where to get mortgage loans in Kenya are mostly from banks and other financial institutions. The banks that offer mortgage loans in Kenya are:
- The mortgage company -Kibra- Nairobi, Kenya
- Kenya Mortgage Refinance company
- Prittworld properties and mortgage Limited- Nairobi, Kenya
- United Women Sacco
- Investment and mortgage bank limited- Nairobi, Kenya
- Mortgage Point Limited- Nairobi, Kenya
- Housing Finance Westlands branch – Nairobi, Kenya
- Missoni- Mombasa, Kenya
- Kenya Commercial Bank- Nairobi, Kenya
- ASA Kenya: NAKURU branch – Nakuru, Kenya.
- Platinum Credit – Phoenix housing- Nairobi, Kenya
- Equity Bank – Kenya
- Co-operative Bank – Kenya
- NCBA Greenspan – Nairobi, Kenya
- Icraf Agency
- Thika Co-operative Bank
- Diamond Trust bank
- Central Bank of Kenya Nyeri Annex- Nyeri, Kenya
Average Number of Mortgage loans maturity in Kenya
The average number of mortgage loan maturities in Kenya is 11.2 years with a minimum of 5 years and maximum of 20 years depending on the mortgage loan institution.
Preparations for mortgage loans in Kenya
To prepare for applying for a mortgage loan, there are few things to do. They are:
- Confirm and know your credit history. Make sure it is error free
- Know the precise type of mortgage you need
- Conduct and extensive research work and compare lenders and banks
- Get all your documents or paperwork ready
- Establish a solid source of income or have a reasonable salary amount.
- Search and find your desired home.
Guidelines to mortgage loans processes
The guidelines to aid in your mortgage loan processes are:
- Endeavour to go for a home inspection through the agents or people involved
- Answer any call by your lender and adhere to instructions given by the bank
- If possible, go for a home insurance ownership or enquire if your lender offers a home insurance
- Do not take a new loan.
- As often as possible review your documents
How to repay mortgage loans
You can repay mortgage loans through an automatic debit from your bank account on the due date.
You can write a standing order requesting that your fund be transferred into your lender’s account at a particular date.
Note: It solely depends on the lender. The lender will determine a specific way of repaying your mortgage loan as at when due.
Reducing housing costs and giving mortgage loans is one great puzzle Fintech companies have solved in Kenya. With support from the government and proper collaboration from the borrower, they have increased access to home loans.
Moreso, in their fundamental rethinking of an approach to reaching a goal of adequate, safe and affordable housing, they designed procedures to assess mortgage loans.
However, getting mortgage loans can be demanding, but you need to follow the due process till you get to the end to own your dream house.