MORTGAGE RATES KENYA: CO-OP BANK

Most of the banks in Kenya today offer mortgages to their customers in different and attractive packages. Most of the figures are appealing to the eyes of the potential buyers.One of the exciting package is the Co-op Bank Kenya Good Home Mortgage.

The Co-op Bank Good Home Mortgage

This package comes with a few new packages that the market is yet to start offering mainstream. With a GHM, you get disclosure of the charges that might accrue to the process. This gives you the benefit of prior knowledge of all the costs involved for proper budgeting. The package comes with in either fixed rolling or variable mortgage interest rates. There is also a possibility of a partnership in case of SACCOs so that the SACCOs on the other can lend to their members at affordable costs.

Other features of the Good Home Mortgage from Co-op Bank Kenya include the Good Faith Estimate which is a document that the bank provides to the customers to show the estimates of the costs and fees that are associated with the mortgage offering. As a GHM customer you also get a project certification from Co-op Bank to give you an assurance that you are buying property that meets all the standards from genuine developers. With GHM you also have the option of an Accelerated Repayment Scheme. This option gives you a chance to increase your monthly repayments to shorten the repayment period. Note that the shorter the repayment period, the cheaper will the mortgage be. Long term mortgages incur you more in terms of interest repayment.

For individuals buying the owner occupied type of mortgage, the interest rates will range from 19.25% to 20% p.a depending on the term. Developers get different rates depending on the security they are willing to offer and the term. Co-operative societies get even cheaper rates depending on the product choice.

The product offering summary

Up to 95% financing for the property value. You need at least 5% of the total sum if you intend to buy for own occupation. Only a maximum of 50% of your income can be used to repay the package Roughly 7% of the selling price will be the associated cost (cost of selling) Fully cleared title deed document An account with Co-op Bank to give easier access to the GHM.