Developer Login

Mortgage Acquisition

This is the purchase of a developed property. One can acquire a property:

  • For own use (own occupation)
  • For investment

The types of property purchased include:

  • Residential units
  • Commercial properties (including Office space/business premises)
  • Commercial cum residential properties (mixed use properties)

Features/benefits:

  • Owner occupier: Up 95% financing for employed and 90% financing for self-employed
    An owner occupied property is where the borrower will occupy the house. A borrower is able to enjoy mortgage relief on interest of up to Kshs. 150,000 when filing their annual returns or monthly on their pay slip where accommodated by their employer.
  • Investment residential: Up 90% financing for employed and 80% financing for self employed
    This is a mortgage loan where the borrower intends to rent out the property. The rental income(s) from such properties can be factored when assessing the borrower’s ability to service a loan.
  • Commercial properties: Up to 70% financing
    Commercial properties are defined as properties purchased for the purpose of generating income – mostly in form of rental income; - however in some cases for a profit gain or for business use. (Examples include apartment blocks, mixed use properties, hospitals, offices, shops/retail space and hotels). 
    Note: 70% financing for companies.

Requirements

  1. General requirements:
    • Duly completed application form
    • Copy of National ID / Passport
    • Copy of KRA PIN
    • Open / Operate a Co-op Bank account (to service loan repayments)
    • Copy of Title / Lease over property being purchased (Minimum lease term - 25 years post loan tenure)
    • Duly signed Sale Agreement/draft sale agreement/ letter of offer (For Outright purchase) 
    • Current Valuation Report (upon loan approval)
    • Evidence of Deposit paid
       
  2. Non-Salaried customers to provide:
    • Business history, profile and background
    • Business registration certificate
    • Audited Books of Accounts for last 3 years
    • Projected Cash-flows, Balance Sheet / Profit & Loss Account for next 3 years
    • Bank statements for the last 1 year to date; Co-op and Other Banks
    • Full details of all Borrowings and Facilities Advanced from other institutions (e.g. letters of offer, loan statements for 6 months)- where applicable
       
  3. Companies to additionally provide:
    • Memorandum & articles of association
    • Board resolution authorizing borrowing
    • Certificate of incorporation
       
  4. Landlords to additionally provide:
    • Rental income schedules/Tenancy agreements
    • Proof of ownership for all rented properties
    • 6 months bank statements where rental income is banked
       
  5. Salaried customers to provide:
    • 3 months pay slips - Originals or Certified copies
    • 6 months salary bank statements - Originals or Certified copies
    • Letter from employer stating:  Position/ Length of service/ Retirement age/ Income/Employment terms, (permanent or contract details)
    • Where on contract employment: copies of existing and previous contracts & CV to confirm professional background
       
  6. Diaspora Customers to additionally provide:
    • Copy of Kenyan Passport
    • Registered Specific Power of attorney
    • Utility bill 
    • Copy of work permit/residency permit
    • KRA Pin Copy 
    • 3 months pay slips/paystubs - Originals or Certified copies 
    • 6 months salary bank statements - Originals or Certified copies 
    • Letter from employer stating:  Position/ Length of service/ Retirement age/ Income/Employment terms, (permanent or contract details)
    • Where on contract employment: copies of existing and previous contracts.

*Diaspora documents have to be notarized by a Notary Public.

Other notes:

MAXIMUM REPAYMENT PERIOD

  • Self- employed individuals /SME borrowers - 15 years 
  • Company borrowing - 10 years 
  • Saccos/societies - 10-15 years 
  • Employed borrowers - 20 years
  • Diaspora borrowers - 10 years                                              
  • Land purchase - 5 years for self- employed and 10 years for employed 10 years.
  • Special schemes - 20 years