The Kenyan mortgage nightmare explained in 5 minutes

A mortgage is a type of loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments divided into principal and interest. The property is the collateral to secure the loan.The following financial institutions offer affordable mortgage rates in Kenya:

1. Standard Chartered Bank of Kenya

Standard Chartered offers some of the cheapest mortgage rates in Kenya. The interest rates can go as low as 12.2% with an option for the comprehensive 105% mortgage financing solution. You will incur a 1% or Ksh 10,000 (whichever is higher) facility fee but can spread your mortgage repayment premiums across a 25-year period hence giving you more bearable monthly payments. Standard Chartered Bank offers mortgage services to both residents and non-residents. Some of the additional fees you should be aware of include:

Facility arrangement fee: 1% of the loan amount (Minimum KES 10,000)
Legal costs and stamp duty varies depending on property value and location
Fire (property) insurance comprehensive insurance with the Bank’s interest duly noted
Mortgage protection insurance for the borrower to safeguard the borrower during the mortgage term
Valuation fees upon approval of the application, the property should be valued
You can drop by their calculator page to see the latest mortgage rates.

2. Commercial Bank of Africa

Commercial bank of Africa offers an attractive mortgage loan rate that is more affordable than the average mortgage rate in Kenya at 12.9%. Their mortgage loans have several unique features such as:

Available and experienced relationship management on hand to advise and guide you on property evaluation and market trends
Flexible repayment periods of up to 25 years
No penalty for early repayment.
Unlike several other banks, the Commercial Bank of Africa has a fast and straightforward application process. To be deemed eligible for a mortgage loan, one needs to show up with:

A completed and signed mortgage application form
Your original ID/passport (plus copies)
Bank statements for the previous six months
Payslips for the last six months
A duly signed sale agreement.
3. Kenya Commercial Bank

There are several reasons why one should get a mortgage loan through Kenya Commercial Bank (KCB). This bank offers several attractive bonuses when it comes to mortgages such as flexible payment. When it comes to payment options, KCB allows for:

Joint payment
Rental payment
Alternative payment This bank also has competitive interest rates and offers mortgage income rates at 13.3%.
When it comes to requirements, an individual is required to show proof of income and proof that they can meet 10% financing and other costs such as stamp duty, lawyer’s fee, and valuation fee. You can use their mortgage calculator to check out the premiums for different mortgage sizes and payment periods.

4. Barclays Bank of Kenya

Barclays Bank Kenya has been offering Mortgage loans to Kenyans for many years. This has allowed them to create a large and loyal customer base. They have an attractive interest rate of 14.4%. Their mortgage loans come in a complete package with:

Repayment period of up to 25 years
Purchase the desired property anywhere in the country
Up to 90% of finance
Security charge over the property.
This bank also offers the simple and easy option of applying for a mortgage loan through its website. Using the bank’s customer-friendly customer service, one can quickly get advice on matters such as interest rates and monthly repayments.

5. Diamond Trust Bank

Diamond Trust Bank can finance the purchase of your dream house by offering you a mortgage loan. This bank will finance up to 90% of the value of the home. As for payment, they have a custom payment plan to suit every unique client’s needs. Payment is also organized into regular installments. The repayment minimum period is 1 year and the maximum is 20 years or one’s 60th birthday. Their mortgage interest rate is 14.6%.
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