HF to finance property costs
03 September 2013, 13:19
Nairobi - Housing Finance is set to finance costs associated with property ownership to increase the uptake of mortgages by the middle to lower end of the market.
Speaking during the launch of Ezesha, a mortgage program, Housing Finance Managing director Frank Ireri said that the revolutionary solution will accelerate access to home ownership as borrowers will not have to wait for years accumulating a deposit to access mortgage.
According to Ireri, the firm will now finance up to 105 percent of the property value which will cover 100 percent of the property cost, stamp duty and the professional fees.
He said that the institution understands the challenges associated with raising entry costs in home ownership during these hard economic times and this made the company come up with an innovative home ownership solution.
“One major stumbling blocks to home ownership has been the upfront of payments such as down payments, stamp duty, valuation and legal fees which account for about 18% of the property cost,” said Ireri.
The company is targeting borrowers who have the afford-ability to repay a home but do not have the deposit required, in line with bettering lives through property and investment solutions.
“Although many borrowers fulfill the afford-ability requirements to repay their loan in full, and are in good credit risk, they often struggle to come up with the deposit,” added Ireri.
The low and middle income class forms a high proportion of the Kenyan population and the trend is expected to continue owing to the rise in numbers of medium income class from 1,5 million as at 3.9 million in 2002 to 3.9 million currently.
It is estimated that a total of 34.3 million housing units will be produced between 2008 and 2030. Of these, 2.2 million units representing 52% of the total will be for low income urban households.
According to the MD, Housing Finance has now acquired the capabilty to provide a wide array of tailor made banking services to its clients across all boards, both in Kenyan KES and foreign currency.
Join in the conversation on our Facebook page. Also get the latest news by following us on Twitter.
Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.