- Interested customers will be offered the mortgage financing at a rate of 11.75% with an approval timeline of 48 hours.
- Customers will purchase units at the newly completed Mi Vida at Garden City project located within Garden City.
Image: HANDOUT
Individuals seeking to purchase and own homes are being offered lower mortgage rates and a shortened timeline for loan approval to boost the housing agenda.
This comes with the recent partnership between Gulf African Bank and the residential developer, Mi Vida Homes.
The pact will offer interested customers mortgage financing at a rate of 11.75 per cent with an approval timeline of 48 hours.
It seeks to allow the bank’s customers and non-customers access the loans and related banking products to purchase units at the newly completed Mi Vida at Garden City project located within Garden City.
The completed project consists of 221 apartments located in the larger Garden City ecosystem that encompasses retail and commercial spaces within the confines of a single location.
Mi Vida Homes CEO Samuel Kariuki said that the partnership with the lender is part of their strategy to increase financing options for potential home buyers.
He said that they are constantly seeking partnerships with institutions that offer our potential customers a variety of home financing options.
"We believe the bank has unique product offers for customers who prefer using financing models that are anchored on the bank's principles,” Kariuki said.
The partnership will see consumers enjoy faster approval of their loans and also have a convenient time space of up to 20 years to facilitate repayment.
The latest survey by BuyRentKenya on mortgages in the country approximates a timeline of 45 to 60 days for a mortgage to be fully approved with the assumption of no inordinate delays with any third-party processes.
The repayment period condition of 20 years is almost double of Central Bank of Kenya (CBK)'s benchmark of 11.2 years.
The move to offer consumers alternatives to easy and convenient ownership of housing units in the country props up the new regime’s task of fulfilling one of its promises in the housing agenda.
The rolling out of a social and affordable low-cost housing program targeting an average of 250,000 units a year.
The new government is also tasked with ensuring that the mortgage uptake multiplies more than 30-fold as listed in their manifesto.
The manifesto indicates the government’s commitment to growing the number of mortgages from 30,000 to 1,000,000 by enabling low-cost mortgages of Sh10,000 and below.
The Gulf African Bank collaboration assured that Kenyans will now be able to access the financing needed to purchase housing units that meet their needs of affordability and quality.
The developer further aims to develop more units in Riruta, Nairobi and also eyes projects in other areas as part of its ambition to deliver quality and affordable housing to the Kenyan market.