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HomeInsurance & Mortgages NewsState-backed mortgage firm to set aside 150% more funds

State-backed mortgage firm to set aside 150% more funds

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 that it plans to increase the funds it would set aside over the coming year to  Sh7 billion. This would amount to a 154.73 per cent rise from the Sh2.748 billion the company funnelled in the 12 months leading up to June 2021, in order to refinance mortgages and increase access to home loans.

“KMRC is accelerating processing of loans so that participating financial institutions may continue to originate mortgages and, therefore, catalyse applications for home loans,” the firm’s chief executive Johnson Oltetia said in a statement following the announcement. “KMRC… [will be] introducing developers to the participating financial institutions so as to create visibility of available eligible properties and encourage uptake of loans for home purchasing.”

Under the KMRC framework, prospective home buyers who qualify for loans could access up to Sh4 million for property in the Nairobi metropolitan, while a loan for property elsewhere is capped at Sh3 million. Borrowers are offered a repayment period of up to 20 years under this scheme. In the year ended June 2021, Kenya’s largest mortgage financier the KCB Group received more than 75 per cent of the Sh2.748 billion allocated, while Nairobi-based Stima Sacco received Sh69 million.

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