List of Top Mortgage Lenders in Kenya

There are arguably tens of mortgage lenders in Kenya, but how reliable can they be? If you are like the majority of people, you would agree that owning a house or a home in Kenya nowadays is one of the most difficult tasks that is both costly and inconvenient.

The cost of land is constantly growing, as are the costs of construction materials, among other things. If you are considering how you could make your dream of owning a home a reality regardless of your net worth, this is when a mortgage comes into play.

Most of the top Mortgage lenders are banks, but there are other financial institutions that provide mortgage loans including Saccos.

This article will inform you on:

What a mortgage entails
What you’ll need to apply for a mortgage
Where can I acquire a low-cost mortgage?
Kenya’s top mortgage lenders

List of Top Mortgage Lenders in Kenya

What is a Mortgage?

A mortgage is a type of loan. It is a loan provided to homebuyers by banks and other financial entities. The property is utilized as loan collateral. Most banks will want a down payment of 20% of the property’s worth to get started.

One advantage of getting a mortgage is that you own a small portion of the property every time you pay it off. This is not the situation when it comes to paying rent.

Taking out a mortgage on a home divides ownership into two parts: equity (what you own) and debt (what the bank owns). As a result, by making mortgage payments, you accumulate more equity and eventually purchase the home by the end of the amortization period.

Another advantage of getting a mortgage is that you can increase the value of the home after you buy it. Assume you obtain a mortgage of 4,000,000 ksh and purchase a property.

Assume you locate someone interested in the property and willing to pay you 7,000,000 Ksh. If you decide to sell the property at that price, you will have made a tidy sum of 3,000,000ksh. You just need to pay the bank what you owe them, not the profit you made.

Read also, List Of Best Asset Financing Banks In Kenya

Types of mortgage products in Kenya

In Kenya, there are two types of mortgages. This classification is determined by the interest rate paid on the loan.

The loan you take out on your property can be:

a) Floating rate mortgage

This sort of homeowner’s loan, also known as a variable or adjustable-rate mortgage, takes into account fluctuating credit market rates. This means that mortgage rates will fluctuate based on the market.