Kenyans can now purchase property at a low-interest rate thanks to a new initiative launched by NCBA in collaboration with the Kenya Mortgage Refinancing Corporation (KMRC).
With a maximum loan amount of Ksh 6 million that can be provided, the proposal will enable NCBA customers to own homes starting at 9.5% interest rates with up to 25 years of payback and 105% home financing.
The mortgage loan will be utilized to purchase new homes or to build residences in significant cities across the Country.
This proposal will be open to anyone with a gross annual income of KSh. 150,000 or less, making it a property financing option for the broad market.
Couples will also be able to combine their incomes under the proposal, as long as they are under the KSh. 150,000 threshold. The 105% financing option also lowers the down payment necessary for conventional mortgages, where consumers receive additional funding for the cost of legal and stamp duty.
The government’s commitment to implementing a number of ambitious social programs to foster long-term economic development is in line with the affordable housing project, which is available to all working and self-employed Kenyans.
The project, according to Tirus Mwithiga, Director of Retail Banking for NCBA Group, aims to alleviate the nation’s present housing challenges.
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“Historically, the property sector has targeted the 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 homeownership accessible to more market segments,” said Mwithiga.
A survey by the Kenya Property Developers Association (KPDA) estimates that there are currently 2 million unoccupied homes and that 61% of urban households reside in slums.
NCBA Bank’s property finance division aims to give customers end-to-end solutions. NCBA Bank property loans are available for the acquisition of plots, single residential or commercial units, multiple residential or commercial units, office buildings, Go Downs, or light industrial assets.
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