Absa Bank has made a significant stride towards making homeownership a reality for more Kenyans with the introduction of 105% mortgage financing. This groundbreaking offering, accompanied by a fixed interest rate of 9.5%, presents a golden opportunity for individuals to fulfill their dreams of owning a home or constructing one, regardless of their income bracket.

Quick Summary:

  • Absa Bank launches 105% mortgage financing at a fixed interest rate of 9.5%.
  • The offering provides financing of up to KES 10.5 million, covering all associated costs, with a flexible tenure of up to 25 years.
  • Head of Mortgages, John Kaburu, emphasizes the bank’s commitment to addressing consumer needs and assisting more Kenyans in pursuing homeownership.

John Kaburu, Head of Mortgages at Absa Bank Kenya PLC, expressed the bank’s dedication to supporting Kenyans in their quest for homeownership, particularly in light of the current economic challenges. The 105% mortgage financing product was developed in response to the prevailing operating environment, aiming to provide affordable credit solutions that empower prospective homeowners to achieve their aspirations.

The comprehensive package offered by Absa Bank covers all associated costs, including due diligence, valuation, Stamp Duty, legal fees, and transactional expenses. This holistic approach makes homeownership more attainable than ever, eliminating barriers that have historically hindered individuals from accessing mortgage loans.

Mr. Kaburu highlighted Absa Bank’s commitment to crafting solutions tailored to the unique needs of its customers. Drawing from the insights gleaned from a survey conducted by the Central Bank of Kenya, which identified the high cost of property acquisition and limited access to long-term financing as significant obstacles for borrowers, Absa Bank is determined to address these challenges head-on.

As a founding member of the Kenya Mortgage Refinance Company (KMRC), Absa Bank plays a pivotal role in facilitating access to affordable housing loans. Through KMRC, banks and SACCOs can access financing at a fixed interest rate of less than 10%, further expanding the pool of resources available for homeownership initiatives.

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