NAIROBI, Kenya, Sep 12 – Housing Finance (HF) has lowered its lending rate to 18 percent from 23 percent in a move expected to increase uptake of mortgages in the country.
The mortgage financier said the reduction in the lending rate was as a result of a drop in the cost of credit and declining inflationary pressure.
HF Managing Director, Frank Ireri said the company projects a growth in new mortgages especially in the middle to lower end of the market.
“Housing Finance has decided to pass on the benefits of an improved credit environment to our customers through lowering borrowing costs for aspiring homebuyers,” said Ireri.
Ireri said the firm has scaled up its involvement on the supply side of residential middle and lower income housing.
“Despite a slowdown in economic activity, we have continued to be involved in property development which will create significant lending opportunities for the company,” said Ireri.
HF supply strategy is aimed at ensuring creation of significant mortgage lending opportunities for the Company.
The mortgage financier, joins KCB and CfC Stanbic, who revised their lending rates downward on Monday following the Central Bank’s move to cut the Central Bank Rate by 350 basis points to 13.50 percent last week.