Absa Provides 105% Mortgage Financing
Absa Bank has introduced 105% mortgage financing, empowering Kenyans to realize their dreams of homeownership at a fixed interest rate of 9.5%.
This offering enables prospective homebuyers or those planning to construct their homes to access financing of up to KES 10.5 million, repayable over a flexible tenure of up to 25 years and it is accessible to individuals across all income brackets.
The 105% offering covers all associated costs including due diligence, valuation, Stamp Duty, legal fees, and transactional expenses, this comprehensive package makes homeownership more attainable than ever before.
In addition, the bank offers re-mortgage financing of up to KES 10.5 million at the same fixed interest rate of 9.5%, catering to individuals seeking to obtain a new mortgage with the bank.
Head of Mortgages at Absa Bank Kenya PLC, John Kaburu, stated that the product was developed in response to the current operating environment, aiming to assist more Kenyans in their pursuit of homeownership.
“As your financial partner, we recognize the challenges posed by the current economic climate and its effect on consumers’ purchasing power. Therefore, we have designed a mortgage solution to provide affordable credit, allowing prospective homeowners to fulfill their aspirations at ease,” said Mr. Kaburu.
This initiative reflects Absa Bank’s commitment to addressing pressing consumer needs, following a survey conducted by the Central Bank of Kenya in 2022, where commercial banks identified the high cost of property acquisition and limited access to long-term financing as major obstacles for individual borrowers seeking mortgage loans.
“As a seasoned player in the mortgage sector, we are committed to crafting solutions and experiences that cater to the unique needs of our customers. Our approach mirrors the construction of a compelling story of homeownership, wherein we act as the conductors, assembling a team of home loan specialists, legal experts, appraisers, insurance providers, and esteemed real estate professionals. This comprehensive approach aligns with our purpose of “Empowering Africa’s tomorrow, together … one story at a time” as our customers embark on life journeys of homeownership,” he added.
Absa is a founding member of the Kenya Mortgage Refinance Company (KMRC), a partially state-owned entity. Through KMRC, banks and SACCOs can access affordable housing loans, enabling them to provide financing for homeownership at a fixed interest rate of less than 10%.