Absa Bank Kenya has launched 105 percent mortgage financing product, marking a significant milestone in Kenya's real estate industry, and offering a breakthrough to the longstanding challenges faced by prospective homeowners.

The new financing option, introduced at a fixed interest rate of 9.5 percent, provides a unique opportunity for Kenyans to turn their homeownership dreams into reality.

The 105 percent mortgage financing from Absa Bank is designed to cater to a wide range of individuals, including prospective homebuyers and those planning to construct their homes.

With financing of up to KES10.5 million available and flexible repayment tenure of up to 25 years, this offering is poised to ensure that homeownership is within reach for individuals across all income brackets.

One of the key features of Absa Bank's 105 percent mortgage financing is its comprehensive coverage of all associated costs, including due diligence, valuation, Stamp Duty, legal fees, and transactional expenses.

This all-inclusive package eliminates the financial burden often associated with property acquisition in Kenya, making homeownership more attainable than ever before.

In addition to the 105 percent mortgage financing, Absa Bank also offers re-mortgage financing of up to KES10.5 million at the same fixed interest rate of 9.5 percent. This option caters to individuals seeking to obtain a new mortgage with the bank, further expanding the range of financing solutions available to prospective homeowners.

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Affordable credit

John Kaburu, Head of Mortgages at Absa Bank Kenya PLC, noted that the new product was developed in response to the current operating environment, aiming to assist more Kenyans in their pursuit of homeownership.

"As your financial partner, we recognize the challenges posed by the current economic climate and its effect on consumers' purchasing power. Therefore, we have designed a mortgage solution to provide affordable credit, allowing prospective homeowners to fulfill their aspirations at ease," said Mr. Kaburu.

This initiative reflects Absa Bank's commitment to addressing pressing consumer needs, particularly in the area of affordable housing. A survey conducted by the Central Bank of Kenya in 2022 identified the high cost of property acquisition and limited access to long-term financing as major obstacles for individual borrowers seeking mortgage loans.

Absa Bank's 105 percent mortgage financing seeks to overcome these challenges, providing a viable solution for prospective homeowners.

Furthermore, Absa Bank is a founding member of the Kenya Mortgage Refinance Company (KMRC), a partially state-owned entity. Through KMRC, banks and SACCOs can access affordable housing loans, enabling them to provide financing for homeownership at a fixed interest rate of less than 10 percent.

Absa Bank's alliance with KMRC underscores its commitment to supporting the growth of the housing sector in Kenya and providing affordable housing solutions to its customers.

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