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NyumbaNet Home Finance: Your comprehensive Guide to Buying That Dream HomeOwning a house is every one's dream. However, too often, the resources are not enough to buy that dream house in cash. The way out is to get a mortgage and repay it over a period of time.
NyumbaNet seeks to make the process of home financing a lot easier by providing you with comparative information that you can peruse through before you decide to apply for a mortgage.
COMPANIES OFFERING MORTGAGES IN Savings and Loan Head Office C/O Josephine Nderitu, Marketing and Business Development Manager George Laboso, Sales Manager Salama House, Tel. (254 20) 338770/338777/8 Fax: (254 020) 334384 Email: savloan@kcb.co.ke, jnderitu@kcb.co.ke, glaboso@kcb.co.ke Website: http://www.kcb.co.ke/about/subsidiaries_sl_overview.asp Housing Finance Head Office: Rehani House, Tel: (254 20) 317474 (Pilot Line) Fax: (254 20) 340299 (Main Fax Line) Email: hotline@housing.co.ke Website: www.housing.co.ke
EABS Bank Head Office 5th Floor, Tel. +254 20 2883000 Fax: +254 20 2883815 Barclays Bank Head Office c/o Retail Product Managers Tel. +(254) (2) 332230/241270 Fax +(254) (2) 213915 Information also available at all Barclays Bank Branches Email: barclays.kenya@barclays.com Website: http://www.barclays.com/africa/kenya/homeloan.htm
Standard Chartered Bank Head Office Tel. 254-020-32093900 Information also available at all Standard Chartered Bank Branches Website: www.standardchartered.com/ke Stanbic Bank Kenya Limited Head Office
SUMMARY OF INTEREST RATES Savings and Loan Residential loans 15% per annum Commercial/ Income Generating 15% per annum Estate Development 14% per annum Special Schemes Negotiable Housing Finance Interest rate is subject to the term of the loan as follows: Loans of between 11 and 15 years = 17.75% Loans of between 5 and 10 years = 17% Loans of between 1 and 5 years = 16.25% The above rates are subject to change.
EABS Bank Residential and commercial property up to Kshs. 5 M – 16% Residential and commercial property up to Kshs. 10 M – 15% Residential and commercial property above Kshs. 10 M – 14% Barclays Bank Customer Category Term of Loan Interest Rate 1. Personal/ Professional 1 to 15 years 14.5% 2. Business 1 to 10 years 15.5% Standard Chartered Bank 14.5% per annum for all the tenures. This is a variable rate and may change from time to time.
Stanbic Bank The current pricing on a Stanbic mortgage loan ranges from base rate + 1.50% per annum to base rate + 4.50% per annum; our base rate is currently 13.75% per annum. The interest rate applicable to your loan will be determined after a credit assessment of your financial position. CALCULATING MORTGAGE MONTHLY PAYMENTS Housing Finance has a page on their website that enables you to calculate the amount of monthly payments you would make for your mortgage. All you need to do is to key in the mortgage amount, interest rate and loan period. To view the page, click on the link below: http://www.housing.co.ke/interestcalc.php DETAILED MORTGAGE INFORMATION Savings and Loan Savings and Loan, which is a wholly owned subsidiary of Kenya Commercial Bank offers the following mortgage products
Repayment Periods are as Follows:
Loans are available to salaried persons, self-employed individuals, partnerships/joint borrowers and limited companies. Loan amount in proportion to value of property Purchase (In
Construction (In
Purchase And Construction In Other Towns And Rural Areas
Mortgage Costs
Housing Finance Loan Application Requirements- Self – Employed Persons FOR PURCHASE OF EXISTING/NEW HOUSE:
Application Requirements – Construction
Note: Maximum monthly repayments not to exceed 35% of gross Income while at least 20% of gross income to be retained as net after loan repayments and personal living expenses APPLICATION REQUIREMENTS FOR EMPLOYED PERSONS FOR PURCHASE OF EXISTING/NEW HOUSE § § Copy of title. For leasehold properties un-expired term on lease should be at least 30 years to redemption date. § Certificate confirming that the vendor has paid ground and land rates to city council. § Originals or certified copies (by employer) of the pay slips for the last 3 months. § Originals or certified copies (by bank) of the bank statements for the last six months. § Copy of PIN certificate § Copies of identification documents § If the account is joint, a marriage certificate § Letter from employer stating your income, retirement age, length of service, employment terms (contract or permanent), eligible house allowance/owner occupier allowance § Open a Lengo savings account (Minimum balance is Kshs 10,000.00. you will require filling account-opening forms with copies of identification documents and 2 passport size photographs) § Fill our application forms § Pay valuation fees based on the selling price and provide instructions/consent for valuers to visit premises Note: - Maximum repayment period is 15 years subject to normal retirement age of 55 years. - Where borrower will occupy the property, maximum loan is 80% of the open market value or cost, whichever is lower. - Where borrower will rent the property, maximum loan is 70% of the open market value or cost, whichever is lower. ON ACCEPTANCE OF OUR OFFER LETTER § Life insurance quotation from our Insurance Brokers after the applicant has gone for the medical examination arranged by them § One months instalment payable in advance (includes monthly insurance premiums & ledger fees) § Annual fire insurance premium, annual life insurance premium and annual ledger fees § Irrevocable letter from employer for loan repayment or standing order instructions § Legal fees and disbursements, payable to the advocates directly § Stamp duty of 4% of selling price payable to the government § Commitment fee – 1% of loan approved Table showing mortgage repayment schedule
*Exclusive of insurance premium *Rates subject to change EABS Bank MORTGAGE LOAN REQUIREMENTS A. PURCHASE OF EXISTING PROPERTY 1. Sale Agreement duly stamped and signed. 2. Certified copy of title deed by the lawyer. 3. Copy of the PIN Certificate – (Applicant/s and Guarantor/s) 4. Evidence of current income from all sources i.e. (I) If employed – Payslips for 3-4 months. Letter from employer indicating – Terms of service, Position held, Salary received, Duration of payment (II) If in business- Audited Accounts for last 3 years. - Certificate of Incorporation/registration and memorandum and articles of Association as well as Tax assessment form. (III) If Rented Income – Tenancy/Lease Agreement and copies of title deed on the rented properties as evidence of ownership. 5. Certified bank statements for the last 12 months. 6. Original and copy of your Identification card or passport. 7. Evidence of balance to complete purchase i.e. 25% for a freehold/leasehold property. 8. Initial fees (I) Valuation fee (Based on property value) Example – Property valued at Kshs. 0.5-2 M – Kshs. 13,570.00 “ “ “ 3 M – Kshs. 15,340.00 “ “ “ 4 M – Kshs. 18,290.00 (II) Medical fee – Kshs. 5,790.00 per person. (III) Bank opinion charges – Kshs. 500.00 9. Current Leading rate. Residential and commercial property up to Kshs. 5 M – 16% Residential and commercial property up to Kshs. 10 M – 15% Residential and commercial property above Kshs. 10 M – 14% 10. Example of monthly repayment/loan period applicable schedule (Flexible) @ 16% Amount Kshs. 5 Years 10 Years 15 Years 20 Years 0.5 M 12, 159.10 8,357.70 7,343.50 6,956.30 1 M 24, 318.10 16,751.40 14,687.00 13,912.60 2 M 48, 636.20 33,502.70 29,374.10 27,825.20 3 M 72, 954.20 50,254.00 44,061.10 41,737.70 NB; Your net income should be more than three (3) times any of the above repayments. B. CAPITAL RAISING All the items in ‘A' above except Nos. 1 and 7. C. UNDER CONSTRUCTION All the items in ‘A' above except No. 1 plus the following:- 1. Approved building plan by the Nairobi City Council. 2. Specifications of work to be done. 3. Contract Agreement duly stamped & signed by al parties. 4. Qualifications and Registration of the contractors and architects. 5. NB: All stage payments are made to contractors on production of architects' certificate and as per our valuers recommendation. 11. Photocopies of each of the above items MUST be enclosed and MUST have, or open an account with us.
Barclays Bank Barclays Bank's mortgage facility provides the following products:
The Barclays Mortgage facility has the following features:
The Barclays Home loan is only available to salaried individuals and self-employed professionals such as doctors, lawyers and architects. Mortgage Costs
General Requirements for application
Documents for security perfection § Valuation report § § Copy of title § Rates clearance certificate § 3 passport size photos Standard Chartered Bank Qualifying Criteria: A Kenyan national or permanent resident Product Features
Ø Purchase of a new home – Kes 1,000,000 Ø Re – mortgage of existing property – Kes 500,000 Ø Borrow additional funds against own property – Kes 500,000
Ø City property: 85% Ø Urban property: 70% Approved Areas Mortgage Costs
Customer Requirements
Stanbic Bank Step One: qualifying Criteria 1) Loan amount is above KES 1,000,000 The home loan amount you require is at least KES 1,000,000 (USD 12,500). The maximum home loan amount available to you is dependant on your income and repayment ability. 2) Loan is for an existing, developed residential property The loan you acquire should be for (i) an existing, developed, residential property in 3) 20% Deposit You will be putting down a minimum deposit of 20% of the net purchase price. If you have already paid a down payment to the seller and this is noted in your sale agreement, this amount will be considered as part of the 20% deposit. 4) Period of loan The period of your loan will be between 2 to 10 years. Qualifying Criteria: The period of your loan will be between 2 to 10 years. 5) Gross Monthly Income Your gross monthly income is at least KES 100,000 (USD 1,875) minimum. Spouse's/partner's income may be included if the property/loan is in joint names. 6) Repayment/Income Ratio less than 35% Your loan repayment should not exceed 35% of your gross monthly income. 7) Leasehold If the property is leasehold, the remaining term after the final loan repayment date is not less than 25 years. 8) Current Account You will open a current account with Stanbic Bank 9) Residency You reside in Step Two: Documentation Required *Completed home loan application form *Completed Income/Expenditure and Asset/Liability forms. *Certified copy of your current pay-slip if employed or proof of income if self-employed. *Certified copy of your contract of employment (Expatriates only). *Certified copy of your Kenya Revenue Authority PIN certificate. *Certified copy of your national identity document or passport if you are not an existing customer. *Copy of documents of title to the property. *Copies of 12 months bank statements (both current and loan accounts) certified by your current banker, if your existing current account is not with Stanbic, or your existing current account has been conducted with the bank for less than 12 months. *If your account has been conducted with the bank for less than 12 months, a letter of reference from (1) your employer, or (2) an existing customer of the bank, or (3) previous bankers or (4) other credible referees. COSTS Some of the costs associated with the purchase of property in 1. Down payment/Deposit 20% of the net property purchase price. 2. Insurance Mortgage protection life assurance and property insurance (against fire & related perils) are required. The cost will depend on the value of the property the applicant is buying and the applicant's age next birthday. 3. Valuation Fee charged will vary from company to company. 4. Stamp Duty 4% of property sale price. 5. Legal fees Fee charged will vary depending on the loan value. 6. Surveyor's fee Approximately KES 35,000 – KES 50,000 7. Facility arrangement fee 0.5% of loan amount.
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