Best Banks For Mortgage Loans
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As the saying goes, east or west, home is best! There’s definitely nothing as relaxing as the confines of one’s own living space after a grueling hard day’s work.
Be it a college cubicle or a rented apartment, anywhere can be a place to kickback, unwind and recharge.
However, there’s that special satisfaction that comes with owning a home and doing away with rental expenses as well as having a place to live out one’s retirement days.
It is for this reason that various banks offer mortgage loans for aspiring home owners to make it a reality.
Below, we look at some of the Kenyan banks that offer mortgage loans, features/benefits of the said loans as well as the requirements needed to qualify for the loans.
( Please note that this list is in no particular order )
1. ABSA BANK
A) Home Loan Straight Purchase
| Features | Requirements |
|---|---|
| Intended for anyone who wants to own a home | Payslips – latest 3 month’s payslips (6 months if allowances are paid)- For salaried |
| Repayment period of up to 25 years | Letter from employer confirming terms of employment, anticipated retirement age, basic salary and allowances indicate the fixed and variable ones, date of employment/length of service and position held at company.- For salaried |
| Purchase the desired property anywhere in the country | Pin certificate- For salaried |
| Up to 90% finance | National ID or passport- For Salaried |
| Security charge over property | 12 months’ statements for non-customers- For Salaried |
| Transfer stamp duty – 4% of home value / 2% for upcountry | Marriage certificate for joint applicants- For Salaried |
| Stamp duty on charge – 0.10% | Regular income, i.e consultancy fees, rental income- For professionals |
| Negotiation fees – 1-2% | Latest 3 years’ audited accounts – For professionals |
| Legal fees – 1.20% | 12 months’ bank statements- For professionals |
| Fire insurance – 0.13% | Professional license and registration certificate by the relevant professional boar- For professionals |
| Home loan protection cover – 0.30% | Certificate of registration/incorporation, memorandum and articles of association, and trading license.- For Business customers |
| Valuation fees – 0.25% of value of property | Audited accounts for the last 3 years (operated business for at least 4 years)- For Business customers |
| Account holder of Absa- For Business customers | |
| Annual tax return- For Business customers | |
| Age 18 to 55 years- For Business customers | |
| Equity contribution of 20%- For Business customers |
B) Construction Loan
| Features | Requirements |
|---|---|
| Up to 100% of the construction costs if a plot is already owned | Payslips – latest 3 month’s payslips (6 months if allowances are paid)- For salaried |
| Up to 80% for buying and building – with a maximum 20-year payback period | Letter from employer confirming terms of employment, anticipated retirement age, basic salary and allowances indicate the fixed and variable ones, date of employment/length of service and position held at company.- For salaried |
| Fixed-price contract for amount above KES10m | Pin certificate- For salaried |
| 9-month moratorium during construction after which repayment starts | National ID or passport- For Salaried |
| Interest paid only on the amount drawn | 12 months’ statements for non-customers- For Salaried |
| Construction loans are disbursed in four phases, 25% of the loan at a time – subject to architect’s certificate and relationship manager report. | Marriage certificate for joint applicants- For Salaried |
| Building plans must be approved. | Regular income, i.e consultancy fees, rental income- For professionals |
| Bill of quantities (BQs) must be drawn by independent and qualified quantity surveyor. | Latest 3 years’ audited accounts – For professionals |
| Construction site must be urban property intended for residential use. | 12 months’ bank statements- For professionals |
| Both pre and post-construction evaluation fees are applicable. | Professional license and registration certificate by the relevant professional boar- For professionals |
| Stage valuations are done throughout the construction process. | Certificate of registration/incorporation, memorandum and articles of association, and trading license.- For Business customers |
| Audited accounts for the last 3 years (operated business for at least 4 years)- For Business customers | |
| Account holder of Absa- For Business customers | |
| Annual tax return- For Business customers | |
| Age 18 to 55 years- For Business customers | |
| Equity contribution of 20%- For Business customers |
C) Equity Release
| Features | Requirements |
|---|---|
| Get up to 80% of the value of your property in cash. | |
| Repayment period is 15 years. | |
| Value of property needs to be more than KES2m (Nairobi) and KES1.5m (up country). | |
| Security: charge over property. | |
| Valuation fees: 0.25% of property value. | |
| Transfer stamp duty- 4% of home value / 2% for upcountry | |
| Stamp duty on charge – 0.1% | |
| Negotiation fees – 1% to 2% | |
| Legal fees – 1.2% | |
| Fire insurance – 0.125% | |
| Home loan protection cover – 0.3% | |
| Valuation fees – 0.25% of value of property | |
D) Buy-To-Let
| Features | Requirements |
|---|---|
| Loan up to 70% of property value | |
| Purchase up to six properties | |
| Finance is available for single-family occupant houses only. | |
| A 12-month rental lease must be signed upon purchase. | |
| No moratorium is available. | |
| Transfer stamp duty – 4% of home value / 2% for upcountry | |
| Stamp duty on charge – 0.10% | |
| Negotiation fees – 1% to 2% | |
| Legal fees – 1.2% | |
| Fire insurance – 0.125% | |
| Home loan protection cover – 0.3% | |
| Valuation fees – 0.25% of value of property | |
| Stamp duty – 4% or 2% depending on the location | |
E) Re-Mortgage
| Features | Requirements |
|---|---|
| Value of property: more than KES2m (Nairobi) and KES1.5m (up country) | |
| Interest rate: 14% on reducing balance | |
| Deposit: 0% | |
| Tenure: up to 25 years depending on retirement age | |
| Security: discharge and charge over property | |
| Stamp duty on charge – 0.25% | |
| Negotiation fees – 1% to 2% | |
| Legal fees – 1.25% | |
| Fire insurance – 0.15% | |
| Home loan protection cover – 0.3% |
F) Business Mortgage Loan
| Features | Requirements |
|---|---|
| Use your business mortgage to buy premises or release equity | |
| You can choose from a fixed or variable rate of interest. | |
| The maximum loan will be determined by the value of the property. | |
| The minimum value of the property must be KES3 million for Nairobi and KES1,2 million for rural areas. | |
| The business must be in existence for at least 4 years, showing profits in the last 3 years of operation. | |
| Get loan repayment cover for your mortgage. | |
| Use your mortgage for equity release on residential property | |
| Obtain mortgage for commercial purposes where the business will be operating. | |
| Get mortgage for owner occupation for a first and second home or you can re-finance to get another loan | |
2. BANK OF AFRICA
A) BOA Mortgage Finance
| Features | Requirements |
|---|---|
| Capital gains from property appreciation. | A duly completed and signed loan application form. |
| Savings on rent. | A sale agreement/offer letter |
| Flexible terms of repayment. | Copy of identity such as identification card or passport and registration documents for a business. |
| Personalized customer service. | Proof of income i.e. payslips. |
| Financial advice on mortgage products. | Bank statements for the last six months. |
| Tax benefit through mortgage relief. | Copy of the title for the property offered as collateral. |
| Own occupation. | A valuation report from a valuer in the bank’s panel (can also be availed after approval). |
| Letter of introduction and undertaking from employer for employed persons. | |
| Open a Current account. |
3. BANK OF BARODA
A) Baroda Home Loan
| Features | Requirements |
|---|---|
| Maximum loan amount of Kes. 100 million. | Regular income |
| Maximum loan tenor is 15 years | Minimum age of 21 years |
| Embedded credit life protection insurance in the loan repayments | Valid identification |
| Simple one step application form and process for applying and hassle free approval. | |
| Rate of Interest CBR+4% | |
| Loan processing fee will be refunded on availment. | |
| No facility renewal fee, No minimum income requirements, penalty for early repayment. | |
| Joint borrowing with close family members is allowed. | |
| Protection of credit life insurance, which can also be financed | |
B) Baroda Mortgage Loan
C) Baroda Home Improvement Loan
3. CONSOLIDATED BANK
A) Mortgages
This is a product designed to service the needs of customers who may wish to own or build their home through purchase or construction of a residential or commercial property, purchasing a plot, equity release or project finance.
| Features | Requirements |
|---|---|
| Proper documentary identification (Identity Card or Passport) | |
| One (1) recent colored passport size photo. (To be provided or taken at the branch) | |
| Introductory letter from the employer/ an account holder. | |
| KRA pin | |
| Next of kin details | |
| Bank statements for the last 6 months- For self employed | |
| Business registration certificate- For self employed | |
| Cash flow projections- For self employed | |
| Copy of the latest annual filing returns and receipts- For self employed | |
| A brief history of the business and nature of the business- For self employed | |
| Audited accounts for a period of 3 years- For self employed |
4. EQUITY BANK
A) House/ Home
This is a loan facility that enables Equity customers to purchase complete house units or construct homes either for residential or commercial purposes.
| Features | Requirements |
|---|---|
| The loan amount is based on the customer’s ability to pay. | Three original latest pay slips |
| The loan period is up to 180 months (15 years). | 2 Copies of the ID & Pin certificate. |
| Financing Margin – up to 100% financing. | An introduction/Appointment/Confirmation letter from the employer. |
| Must have an existing MOU with the customer’s employer. | Duly signed authorization forms. |
| Salary is not a prerequisite for some employers. | Dully completed loan application and appraisal form |
| Must have the ability to pay | Valuation report |
| Ability to effect loan deductions on check-off is required. | Title deed |
B) Plot Loans
This is a long-term facility to enable customers purchase land/plots either for residential or commercial purpose.
| Features | Requirements |
|---|---|
| The loan amount is based on the customer’s ability to pay. | Three original latest pay slips |
| The loan period is up to 120 months (10 years). | 2 Copies of the ID & Pin certificate. |
| Financing Margin – up to 100% financing. | An introduction/Appointment/Confirmation letter from the employer. |
| Equity must have an existing MOU with the customer’s employer. | Duly signed authorization forms. |
| Salary is not a prerequisite for some employers. | Dully completed loan application and appraisal form |
| Must have the ability to pay. | Sale agreement |
| Ability to effect loan deductions on check-off. | Valuation report |
| Title deed |
5. FAMILY BANK
A) Estate Development
Estate development, or project financing, is tailored for developers putting up houses for sale.
| Features | Requirements |
|---|---|
| Financing repayable within 24 months. | Approved building plans |
| Financing terms are dependent on the scale of the project and fulfillment of the outlined requirements. | Approved structural drawings |
| Priced bills of quantities | |
| Approval from National Environmental Management Authority (NEMA). Project team should submit their comprehensive CVs, registration certificates and profiles of successful projects completed in the past 5-10 years | |
| Feasibility study confirming viability of the project | |
| Formal contract between the developer and the contractor duly executed |
B) Construction Loans
| Features | Requirements |
|---|---|
| Business registration certificate | |
| Bank statements for the last 12 months | |
| Books of accounts or cash flow statements | |
| One passport size photograph | |
| Articles of Association and Memorandum of Association | |
| Certificate of incorporation | |
| Board resolution to borrow | |
| Bank statements for the past one year | |
| Audited accounts for the past 3 years | |
| Management accounts | |
| Cash flow | |
| Duly completed loan application forms |
C) Company Schemes
These schemes enable employees and members of the group to access mortgage loans at subsidized rates.
| Features | Requirements |
|---|---|
| Business registration certificate | |
| Bank statements for the latest 12 months | |
| Books of accounts or cash flow statements | |
| One passport size photograph | |
| Articles and memorandum of association | |
| Certificate of incorporation | |
| Board resolution to borrow | |
| Bank statements for the last one year | |
| Audited accounts for the last 3 years | |
| Management accounts | |
| Cash flow | |
| Duly completed loan application forms |
D) Brick-By-Brick
Build your home in phases and pay in affordable stages. What’s more, you can move in to your home once the first phase is completed.
You can then decide to take a break from building and carry on later, or continue with construction as you live rent free, comfortably and safely in your new home.
| Features | Requirements |
|---|---|
| Build your home in phases and pay in affordable stages | Business registration certificate |
| Choose to take a break from building and carry on later | Bank statements for the latest 12 months |
| Your new home will grow with you as your finances and circumstances allow | Books of accounts or cash flow statements |
| Embark on the next phase of your construction whenever you are ready | One passport size photograph |
| Organized and affordable manner | Articles and memorandum of association |
| Certificate of incorporation | |
| Board resolution to borrow | |
| Bank statements for the last one year | |
| Audited Accounts for the last 3 years | |
| Management accounts | |
| Cash flow | |
| Duly completed loan application forms |
E) Owner Occupier
Owner Occupier is collateralized by the dwelling house and is best especially if you are considering acquiring your first home for your family occupation
We grant a purchase loan to buy ready-built residential house or construction of a house .
| Features | Requirements |
|---|---|
| The repayment for owner occupier mortgage is capped at a maximum of 25 years | Business registration certificate |
| Bank statements for the past 12 months | |
| Books of accounts or cash flow statements | |
| One passport size photograph | |
| Articles of Association and Memorandum of association | |
| Certificate of incorporation | |
| Board resolution to borrow | |
| Bank statements for the past one year | |
| Audited accounts for the past 3 years | |
| Management accounts | |
| Cash flow | |
| Duly completed loan application forms | |
F) Plot Loans
Plot loans are open to both individuals and investors who would wish to purchase land for future development.
| Features | Requirements |
|---|---|
| Business registration certificate | |
| Bank statements for the past 12 months | |
| Books of accounts or cash flow statements | |
| One passport size photograph | |
| Articles of Association and Memorandum of Association | |
| Certificate of incorporation | |
| Board resolution to borrow | |
| Bank statements for the past one year | |
| Audited accounts for the past 3 years | |
| Management accounts | |
| Cash flow | |
| Duly completed loan application forms |
6. I&M BANK
A) Home/ Mortgage
7. KENYA COMMERCIAL BANK
A) KCB Home Loan
| Features | Requirements |
|---|---|
| Borrow loan amounts from Ksh 500,000 | Pay slips for the last 3 months |
| Repayment period of up-to 25 years | Letter from employer confirming employment status |
| Financial access to 90% ( owner occupier ), 80% ( income generating activities ) & 70% ( plot purchase ) | Bank statements for the latest 6 months |
| Available to salaried, self employed, contracted and Kenyans in diaspora | National ID or valid Passport |
| Easily accessible express interest at over 200 KCB branches country-wide. | KRA PIN certificate |
| Access to Home loan top-up | Three passport size photographs |
| Appraisal fees at 2.5% of loan amount | Sale agreement duly signed by both parties and witnessed by a lawyer. |
| Ledger fees of Ksh350 per month | Title to property being purchased/charged (minimum lease term must be at least 35 years) |
| Stamp duty on charge (0.1% of loan amount) | Open a mortgage account with an opening balance of Kshs.10,000 |
| Insurance to cover life and property | A third of your basic salary is to be left to cater for your living expenses |
| Valuation fees | Bank statements for the last 12 months |
| Legal fees | KRA PIN Certificate |
| Negotiation Fee of 2.5% of loan amount | Certificate of Registration & Trading License |
| Stamp duty at 4% of cost of property or value on the open market | Partnership Deeds |
| Insurance premium can be financed by KCB | Audited Books of Accounts |
| Income tax return | |
| Tenancy agreements for rented properties/rental schedules | |
| Memorandum & Articles of Association | |
| Certificate of Incorporation | |
| Audited Books of Accounts | |
| KRA PIN Certificate | |
| Tax Compliance Certificate | |
| Directors Resolution to Borrow | |
| Approved building plans | |
| Approved structural drawings | |
| Priced bills of quantities | |
| Profiles for the architect, contractor and quantity surveyor | |
| NEMA approval | |
| NCA Certificate |
8. NCBA BANK
A) NCBA Home Loan
9. STANDARD CHARTERED BANK
A) Home Mortgage
B) Construction Mortgage
C) Non-Resident Mortgage
