List of Banks, Companies That Offer Mortgages In Kenya
Owning a house tends to be frustrating and expensive today because the cost of land is ever rising, construction materials price is high and the pay for the workers. The mortgage helps to own a house a reality regardless of all the problems.
Mortgages are loans offered to buyers by banks and companies as collateral while the property is used.
To start with, most banks require a down road payment of 20 percent of the property.
One of the main advantages of the mortgaged property is that you own a little piece of property each time you pay off the mortgage. By paying the debt that you owe a bank you end up buying more equity thus gaining the property that you have.
The other reason is that, with a mortgage, you can trip the value of the property i.e when a bank gives you five million you buy a property and you find someone who is interested you call sell them the property at nine million and hence make a profit of four million then pay the bank the amount you owe them.
Types of mortgages in Kenya
Mortgages are classified on the rate paid on the loan they include
- Floating rate mortgage
It factors in fluctuating rates of the credit market. The mortgage rate goes up or down depending on the market. When rates are high in the market the credit goes up and goes down when the rate is low. This tends to be risky.
2. Fixed-rate mortgage
Here the fixed rate does not fluctuate with the credit market. It is the safest and the most expensive
Types of loans that banks or companies offer:
- Owner-occupied residential mortgage.
To those that purchase the property for investment, not for residence.
- Investment residential mortgage.
To those that purchase the property for investment, not for residence
- Construction loan.
To those that want to build in a land hence the amount is spent in construction
- Top up loans also called an Equity loan
Using Equity to get extra funds which can be used in other things
Things you need to get a mortgage
With each institution or bank, they require some documents to get a mortgage of which vary depending on the company. The requirements include;
- A signal mortgage application form.
- Original copies of your identification documents, identification card, or passport.
- An introduction letter from your employer
- Three months payslip
- Certified bank statement for at least six months
- Letter of an offer or a sales agreement
Mortgage providers in Kenya
Some of the mortgage providers in Kenya and the average annual interest rate with which may vary with time. They include;
- Housing finance group
- Standard chartered bank 12.2%
- Citibank Kenya 12.5%
- Commercial Bank of Kenya 12.9%
- KCB Bank 13.35
- CFC Stanbic Kenya14.1%
- Barclays Bank of Kenya14.4%
- Co-operative Bank of Kenya 14.9%