, NAIROBI, Kenya Apr 11 – As the demand for housing in the country continues to rise, CfC Stanbic bank has introduced an initiative that will enable potential homebuyers to easily take up mortgages.
The bank has re-launched its 100 percent mortgage financing which means that customers do not have to pay a deposit, which the bank had pegged at 25 percent of the value of the property.
Speaking to Capital Business CfC Stanbic Director of Direct Banking Andrew Robertson said that such hindrances have made it difficult for many Kenyans to own homes adding the bank was placing itself strategically to capitalise on the demand for housing.
"We are really trying to help especially first time home buyers ensure they that they meet stringent requirements and qualify for home loans more easily," Mr Robertson said.
A recent survey by the Central Bank of Kenya and the World Bank revealed that there are only about 15,000 mortgage loans in the country, which is too low compared to other countries in Africa.
However, besides increasing the uptake, the bank which controls 10 percent of Kenya\’s mortgage market hopes that through this solution, it will grow this segment further.
"From a CfC Stanbic’s point of view we are trying to assist clients to acquire or enter into the property market," Mr Robertson said.
He said mortgage financiers in the country will have to come up with innovative solutions in future if they were to meet the rising demand for housing in the country.
"The demand for property is always going to be there so as the economy continues to grow there have to be more solutions in the market to bridge the gap between demand and supply," he said.
The mortgage programme offers residential homebuyers full loan-to-value financing which will enable first time homebuyers gain greater purchasing flexibility.
The 100 percent Mortgage Programme provides eligible homebuyers who have the ability to repay their loans, but have not yet saved enough for minimum down payment, with the opportunity to purchase a home now, while taking advantage of competitively priced mortgage products and terms.
Combined with the bank\’s flexible repayment options designed to help customers to pay off their mortgage sooner, the 100 percent mortgage deal is an ideal option for first-time homebuyers.
Eligible clients will however be required to have a salary of Sh100,000 to qualify for the mortgage.
Mr Robertson said mortgage finance provides the bank with an avenue to diversify its business portfolio and grow its business.
"Home loans are one of our important asset classes so we are continuously trying to grow that part of our business," he said.