Point Properties Ltd

StanChart to offer 13pc mortgage loans

Prospective homeowners could borrow up to Sh100 million at 13 per cent annual interest or at six per cent for dollar denominated mortgages from Standard Chartered Bank . This is after the lender introduced the Kenya shilling and dollar-denominated loan products targeting to disburse Sh4 billion in the next two months. Head of retail banking David Idoru said the new products emanated from a market survey conducted in Kenya and eight other Asian countries that indicated home ownership and children’s education enjoyed top priority for most individuals. He said the bank was ready to meet demand for mortgage loans using the new products that mitigate difficulties experienced by Kenyan borrowers after introduction of the interest rate capping law which tightened regulations for dishing out loans. “We are introducing flexibility based on our customers’ feedback. This facility allows customers to plan in the long term up to 25 years,” said Mr Idoru. Read more

35 Saccos Sign Up to Offer Interest-Free House Loans

A group of 35 savings and credit co-operative societies (SACCOs) has unveiled a housing loans plan in which their members will get interest-free mortgages. The scheme, called the Africa Tenancy Purchase Initiative, will see credit union members pay an upfront deposit of 10 per cent of the cost of a unit and then pay the balance in “rent” instalments for up to 20 years. The unions, including Kimisitu Sacco, Safaricom Sacco, Habitat Housing Co-operative, and Nation Sacco, have a pipeline of five projects under the tenant purchase scheme comprising high-rise apartment blocks within the Nairobi metropolis. Up to 5,000 members are expected to benefit in the next two years, a number that is projected to rise as more saccos join the scheme. “With more than 90 per cent of Kenyans being tenants, this scheme converts their rent payments to make them homeowners. You just pay the deposit and the balance as rent. There is no interest rate,” said Mr David Ndegwa, a real estate developer and a member of the scheme’s steering committee. “We have critically analysed the consumer behaviour and the dynamics around how much a typical Kenyan in urban areas pays for rent and structured an affordable rent-and-purchase…

Gross non-performing loans (NPLs) rose 15.8 per cent to Sh170.6 billion in March compared to Sh147.3 billion in December, the Central Bank of Kenya (CBK) says in its first quarter industry report. “Real estate sector recorded the highest increase in NPLs over the quarter by Sh5.9 billion or 42.3 per cent. This is attributable to slow uptake of housing units,” the CBK report says, adding that the pile of bad loans in the personal/household sector increased by Sh5.7 billion or 21.5 per cent between December 2015 and March 2016 “as a result of negative macroeconomic drivers such as job losses and delayed salaries.” Story by Victor Juma. Read more Source