Homeownership is a dream cherished by many, yet the high costs involved often create a significant barrier. For years, the prospect of securing a mortgage seemed daunting, particularly for the middle class, due to the steep double-digit interest rates. But here's the good news: The landscape has changed, especially for first-time homebuyers. Affordable home loans are now within reach, making the dream of owning property in Kenya more attainable than ever!
What is an affordable home loan?
Affordable home loans are special mortgage facilities backed by the Kenya Mortgage Refinancing Company (KMRC) and offered through selected banks and SACCOs. These loans are designed with single-digit interest rates ranging from 9% to 9.9% per annum. Borrowers can access up to KSh. 10.5 million, repayable over a period of up to 25 years at a fixed interest rate. Typically, a down payment of 20% of the purchase price is required, with the bank financing the remaining 80% upon property completion. In some cases, borrowers may even qualify for 105% financing.
These loans are specifically tailored to make homeownership attainable for the underserved segment of the market — individuals and households with a monthly income of Kshs. 200,000 on average. Importantly, these affordable home loans can be accessed only once in a lifetime.
Affordability
The structure of these loans ensures that monthly repayments are almost equivalent to what you would pay in rent. Thanks to the incentives and extended repayment periods, owning a home is now within reach for many. Here are some examples of properties that you can own at nearly the same cost as renting:
1 bedroom in Kilimani — Kshs 1.36 M deposit & Kshs 56,806 monthly repayments for 15 years
Expected monthly net rent — Kshs 55,000
Affordable home loan repayment — Kshs 56,806 / month.
2 bedroom in Kilimani — Kshs 1.98 M deposit & Kshs 82,703 monthly repayments for 15 years
Expected monthly net rent — Kshs 75,000
Affordable home loan repayment — Kshs 82,703 / month.
1 bedroom in Westlands — Kshs 1.8 M deposit & Kshs 75,185 monthly repayments for 15 years
Expected monthly net rent — Kshs 85,000
Affordable home loan repayment — Kshs 75,185 / month.
2 bedroom in Westlands — Kshs 4.06 M deposit & Kshs 109,018 monthly repayments for 15 years
Expected monthly net rent — Kshs 110,000
Affordable home loan repayment — Kshs 109.018 / month.
Who is eligible?
Property: The property to be purchased with an affordable home loan has to be a residential property for owner occupation / for occupation by immediate relatives of the owner.
Borrower:
Kenyan citizens both in the country and diaspora
Salaried individuals
Self employed individuals with verifiable source(s) of income
Take the first step towards homeownership!
Thanks to affordable home loans available through our partner financiers, owning a home is now more achievable than ever. We've reduced the house hunting journey from months to minutes through Our Website . Use our affordable home loan calculator to get an estimate of the amount you qualify to borrow and get matched with vetted properties within your affordability range, as well as the right property agent and financial partner.
For more information on how we can help you achieve your homeownership goals, reach out to us at +254 743 466 209 / +254 757 488 833 or email us at info@rentscore.africa .
