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.

Cynthia Kerubo

Mar 4, 2021 - 10:55

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List of Banks, Companies That Offer Mortgages In Kenya

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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;