NCBA has partnered with Kenya Mortgage Refinance Company (KMRC) to roll out an ambitious product that it says will enable Kenyans to own homes affordable interest rates.

NCBA customers will be able to access the offering to own homes starting from 9.5 per cent interest rate with up to 25 years repayment period and 105 per cent home financing.

The potential home owners will access up to Sh6 million with the mortgage facility to be used to acquire new homes or to build for residential use in major towns across Kenya.

NCBA says the facility will be available to individuals who earn a gross income of Sh150,000 and below adding that it is a property finance solution that is targeting the mass market.

The proposition will also allow couples to combine their incomes to access the mortgage facility as long as their incomes fall within the Sh150,000 threshold.

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NCBA added that the 105 per cent financing offered lowers the down payment requirement in traditional mortgages, where customers get extra funding for legal and stamp duty fees.

The bank says the initiative is aligned to the Government’s affordable housing pledge to spur economic development and is open to all Kenyans, whether employed or in business.

NCBA Group Director Retail Banking Tirus Mwithiga said the bank’s mortgage proposition is seeking to tackle the current significant housing shortfall being witnessed in the country.

“Historically, the property sector has targeted upper income segment of the market. However, as a bank, we are working in partnership with other organizations such as the Kenya Mortgage Refinance Company (KMRC) and like-minded Real Estate developers to make home ownership accessible to more market segments,” said Mwithiga.

He added, “Our property financing team will hold monthly webinars with the aim of demystifying the offer as well as discussions around the fulfilment of the affordable housing dream in order to raise awareness of the concept.”

Mwithiga said NCBA will also use its partnerships with developers including Unity Homes, Zima Homes and Maisha Development to offer customers suitable affordable properties.

“In line with KMRC’s strategic focus of providing fixed rate, long-term funds to catalyze the growth of home loans, we are committed to work with NCBA and provide all the support that the bank needs on this journey,” said Head of Credit at KMRC Geoffrey Mwaura.

He added, “Ultimately, we expect more Kenyans to access these affordable home loans being rolled out.”

A report by Kenya Property Developers Association (KPDA) estimated the current housing deficit at two million houses with close to 61 per cent of urban families living in slums.

The report put the current urbanization rate of 4.2 per cent, which is equivalent to 500,000 new city dwellers each year with hurdles in demand and supply aggravating the deficit.

NCBA has further partnered with a host of property market stakeholders like quantity surveyors, valuers, furniture shops, house fitters as extra services coming with mortgages.