Home ownership is a dream of many visionary Kenyans.
Mortgage is one of the ways that home owners go for to make the dream possible.
Take a look on the factors highlighted below.
Interest
Mortgage lender can arbitrarily change interest rates midstream. Seek out fixed interest rates first before signing up a mortgage agreement.
It’s expensive
Mortgages in Kenya are expensive. Save for a few years first so that you have a good stock of deposit (at least 30 per cent) to place as equity for the house at the point you are taking a mortgage. This help you get lower monthly mortgage installments or at least a shorter mortgage period.
Extra costs
You need to either ensure you have the cash upfront so that the costs are not added to the mortgage itself or vigorously negotiate with all the service providers in the transactions including lawyers and valuers.
What are you really paying for?
You’ll tend to note that houses that are being sold under mortgages tend to be a bit more expensive to the borrower than houses that are paid for in cash or even in installments. This is because developers have significant costs and inconveniences they have to deal with to facilitate sale of the houses to mortgage borrowers. They would therefore price these costs and inconveniences to the buyer. It is important to get this clarity before signing up.