NCBA Bank, in partnership with the Kenya Mortgage Refinance Company (KMRC), have launched a home acquisition initiative that will enable Kenyans own a home at affordable interest rates.
The proposition will allow NCBA customers to own homes starting from 9.5% interest rate with up to 25 years repayment and 105% home financing, with a limit of a loan amount of up to Ksh. 6 Million to be issued. The mortgage loan will be used to acquire new homes or to construct for residential purposes, in major towns across the country.
This proposition will be available to individuals who earn a gross income of Ksh. 150,000 and below, making it a property finance solution for the mass market. Under the proposition couples will also have the option to combine incomes as long as they are within the Ksh. 150,000 threshold. Furthermore, the 105% financing offered will reduce the down payment required in traditional mortgages, where customers will get additional financing for the legal and stamp duty fees.
Tirus Mwithiga, NCBA Group Director Retail Banking said the initiative seeks to address the current housing challenges being experienced in the country.
“Historically, the property sector has targeted upper income segment of the market. However, as a bank, we are working in partnership with other organizations such as the Kenya Mortgage Refinance Company (KMRC) and like-minded Real Estate developers to make home ownership accessible to more market segments.” said Mwithiga.
Mwithiga added, “Our property financing team will hold monthly webinars with the aim of demystifying the offer as well as discussions around the fulfilment of the affordable housing dream in order to raise awareness of the concept. In addition, we will keep utilizing our partnerships with developers like Unity Homes, Zima Homes and Maisha Development to present our offering in suitable properties through open days and on-site activations.
“Homeownership dignifies our communities and provides opportunities for individuals and families to build wealth over time. In line with KMRC’s strategic focus of providing fixed rate, long-term funds to catalyze the growth of home loans, we are committed to work with NCBA and provide all the support that the bank needs on this journey. Ultimately, we expect more Kenyans to access these affordable home loans being rolled out,” said Geofrey Mwaura, Head of Credit at KMRC.
The property finance unit at NCBA Bank seeks to provide customers with end-to-end solutions. NCBA Bank property loans cover purchase of plots, single residential or commercial units, purchase of multiple residential or commercial units, purchase of office blocks, Go Downs or light industrial property.
NCBA has signed partnerships with quantity surveyors, valuers, furniture shops, house fittings dealers among others who will provide support to prospective clients as additional services that come with mortgages.