Understanding Mortgage Financing In Kenya

Whether you’re a first-time homebuyer or looking to upgrade to your dream property, these lenders offer various options that suit your needs and budget. Let's help you find a deal that won’t leave you eating noodles for the next 30 years.

2024 Top-Rated Mortgage Lenders in Kenya

KCB Bank:

Known for its flexibility, one can borrow any amount of money starting from Kes 500,000.KCB offers various mortgage options with interest rates ranging from 9.5% to 13.4%. At KCB financing, owners can access up to 90% of the property for owner occupiers and 80% for income-generating properties. They provide loans for houses, purchases, construction, and refinancing, with up to 25 years of repayment terms.

NCBA Bank:

NCBA makes becoming a homeowner an achievable goal. Mortgage loan facilities include the loan amount in local currency and 1.5 % of the loan amount in foreign currency.

NCBA mortgage loans are offered in Kenya Shillings, Dollars, Pounds, and Euros. They offer up to 105% Financing of the property value or the market price, whichever is lower. The maximum term is up to 25 years, and the Home loan Interest cost is calculated on a reducing balance basis.

HF Group:

HF Group partners with Kenya Mortgage Refinance Company (KMRC) to facilitate home ownership. They offer Loans of up to 90% of the purchase price or valuation, whichever is lower. The Repayment period is up to 20 years.

The Fees and rates include Commitment fees, which are 2% of the loan amount; Excise duty, which is 20% of the commitment fees; and related cost. The HF group's benefits include a Concessional rate of 9.5%.

Standard Chartered Bank:

Standard Chartered Bank has interest rates of approximately 12.5%, and they offer comprehensive mortgage services, including loans for residential and commercial properties. A home buyer can borrow up to KES 100 million, with up to 100% financing and a long tenure of up to 25 years.

Citibank Kenya:

This bank has maintained a strong presence, with house interest rates around 12.5%. It is known for its efficient application process and customer service.

Commercial Bank of Africa (CBA):

CBA offers a range of mortgage products, with rates starting at around 13.3%. They focus on customer satisfaction and flexible repayment terms.

Co-operative Bank:

Known for its community focus, this bank offers mortgages with interest rates of about 15.1% and various products suitable for different financial needs.

CFC Stanbic Bank:

Their interest rates hover around 14.4%, and they provide various home financing options catering to first-time buyers and investors.

Barclays Bank of Kenya:

Now, under Absa, they offer mortgage products with interest rates close to 14.9%. They provide tailored solutions to meet individual customer needs.

Consolidated Bank:

With one of the higher interest rates at about 15.4%, they still cater to a niche market, providing various mortgage products.

Conclusion

Navigating the mortgage market for houses in Kenya can be complex, but with the proper guidance, you can find the best lenders for your finances.

You can achieve your dream of buying a house by understanding the different types of mortgage lenders, choosing the right lender, and managing your mortgage costs and fees.