Kenya's Mortgage Terms

National Mortgage facility for civil servants has offered loans to 391 workers from different ministries and local government authorities worth 4.5bn during the 2016/17 financial year.

This was stated in Dar es Salaam by the Director for Housing Section in the Ministry of Lands, Housing and Human settlement Development, Mr. Michael Mwalukasa, while speaking to reporters on the advancement made by the facility.

He said since the facility was founded 2,040 civil servants were helped among the 3,900 applications they have received.

Explaining further, he said when the facility was launched; their objective was to offer loans to 500 public servants annually on average of 3mil/- in each mortgage.

‘’The total cost of funds provided is 12bn/-,” he stated. Mr. Mwalukasa said the facility has made it possible for government officials to get houses in legally accepted regions.

“The facility to a larger degree has encouraged housing development in different districts and cities, the maximum sum of loans provided is 20mil/- given in two stages with regard to the aim of attaining it,” he said

The National Housing Corporation of Tanzania a leading real estate development and management firm authorized under the Ministry of Lands, Housing and Settlements Development has also launched a new system which lets its patrons to pay for the houses purchased while living in their own homes.

Known as the “Tenant Purchase Scheme”. It allows Tenants to purchase NHC houses directly through a long-standing payment plan, where the tenant pays a monthly payment for a period of ten years. With the house given over to client after completing all requirements. The patron is given their housing unit title deed after the final payment.

The main purpose of the Tenant Purchase Scheme is to offer a simple and lasting access to home ownership for institutions and households that are not otherwise capable of either raising sufficient funds for complete purchase of housing or who might not meet the criteria for traditional mortgage finance.

This tenant purchase scheme has been operational since November 1st 2016