Cheapest Mortgage Rates Lenders in Kenya

There are hundreds of mortgage lenders in Kenya, but certainly, not all of them have affordable rates. So which lenders offer the cheapest mortgage rates in the country?

Owning a home is a lifelong ambition for many Kenyans, and it is now more possible than ever thanks to many low mortgage rates in Kenya today. A mortgage is a loan in which real estate or property is used as security.

The borrower (you) enters into an arrangement with the lender (typically a bank) to get a lump sum to invest in your real estate enterprise and then repay the loan and accrued interest over a specified time period. Before applying for a mortgage, it is critical to conduct extensive research on various banks and their interest rates.

When approaching a bank for any type of financing, there are a few crucial variables to consider. The most significant thing is to study their terms and conditions carefully, paying special attention to the proportion of costs covered by the loan, the loan repayment duration, and the interest rates. Obtaining a mortgage is no different.

Before applying for a mortgage loan, you should think about things like interest rates, monthly payments, location, and property prices. It is also advisable to select a bank that you know and trust.

Here are some recommended Kenyan banks with the lowest mortgage interest rates.

Cheapest Mortgage Rates Lenders in Kenya

1. Citibank Kenya

Citibank Kenya is a popular mortgage provider in Kenya, with comparatively low housing mortgage rates. This bank provides a mortgage loan at a rate of 12.5%. This bank features a quick and easy application process with a quick approval time.

The bank has been in Kenya since 1975 and has built a loyal customer base thanks to low-interest rates and a flexible payment structure. This bank also provides many mortgage choices that guarantee the consumer bespoke interest rates based on their specific demands.

2. Standard Chartered Bank Kenya

Standard Chartered now has some of the lowest mortgage rates in Kenya. With the option of a comprehensive 105% mortgage financing solution, interest rates can be as low as 12.2%.

You will be charged a 1% or Ksh 10,000 (whichever is greater) facility fee, but you can spread your mortgage payback premiums over a 25-year period, resulting in more manageable monthly payments. Mortgage services are provided by Standard Chartered Bank to both residents and non-residents.

You should be aware of the following additional fees:

  • Fee for facility arrangement: 1% of the loan amount (minimum of KES 10,000).
  • Legal fees and stamp duty can vary based on the value of the property and its location.
  • Fire (property) insurance – all-inclusive insurance with the Bank’s interest clearly stated
  • Borrower mortgage protection insurance – to protect the borrower during the mortgage term
  • Fees for valuation – the property should be valued when the application is approved.

Read also, List of Top Mortgage Lenders in Kenya

3. Kenya Commercial Bank (KCB)

There are various reasons why a mortgage loan from Kenya Commercial Bank (KCB) should be obtained. This bank provides various appealing mortgage benefits, such as flexible payment options.

KCB accepts the following payment methods:

  • Joint payment
  • Rental payment
  • Alternative payment

This bank also offers attractive interest rates and mortgage income rates starting at 13.3%, forming one of the cheapest mortgage rates in the country. When it comes to criteria, an individual must present proof of income as well as proof that they can cover 10% financing as well as additional costs such as stamp duty, lawyer’s fees, and appraisal fees.

You can use their mortgage calculator to compare premiums for various mortgage sizes and payment terms.

4. Commercial Bank of Africa

Commercial Bank of Africa offers an appealing mortgage loan rate that is lower than Kenya’s average mortgage rate of 12.9%. Their mortgage loans have various distinguishing aspects, including Relationship management is available and experienced to advise and coach you on property evaluation and market trends.

Repayment terms of up to 25 years are available. There is no penalty for repaying early. Unlike many other banks, Commercial Bank of Africa provides a simple and quick application process.

To be considered qualified for a mortgage loan, one must present:

  • A mortgage application form that has been completed and signed
  • Original ID/passport (together with copies)
  • Bank statements from the last six months
  • Salary slips for the previous six months
  • A properly signed sale contract

5. CFC Stanbic Bank

CFC Stanbic Bank has mortgage rates as low as 14.1%. Their mortgage packages have various appealing features, including a construction mortgage. This bank will help you realize your ambition of developing a dream home. This bank will finance up to 90% of the total building cost as determined by a legally registered Quantity Surveyor’s Bill of Quantities.

Financing for the finished property is available up to 105%. T