Co-op Bank is offering young Kenyans an opportunity to finance up to 100 per cent of the cost of a residential property through a mortgage facility of up to Ksh10.5 million.

🇰🇪 Breaking It Down

The facility, offered under the Kenya Mortgage Refinance Company (KMRC) mortgage solution, has an interest rate of 9.5 per cent and a repayment period of up to 25 years for salaried borrowers.

Evan Mwangi, Acting Head of Retail Mortgage at Co-op Bank, outlined the facility during this week's Co-op Bank Youth Forums, which focused on homeownership and mortgages for young people.

According to Mwangi, the financing can be used to buy a ready house, purchase land and construct a house, or build on land already owned by the borrower.

📌 What You Need to Know

"With Co-op Bank, you can get 100 per cent financing to buy a ready house or buy land, and the bank finances the building or just construction under the KMRC mortgage solution," Mwangi said on Friday, August 21.

The maximum property value under the facility is Ksh15 million, while the maximum mortgage financing is Ksh10.5 million.

For young buyers, Mwangi noted that Co-op Bank has properties available at about Ksh3.5 million, including one-bedroom houses in Ongata Rongai and three-bedroom houses in Kisaju.

Mwangi said 100 per cent financing can help borrowers who qualify for a mortgage but may struggle to raise a traditional deposit upfront.

However, borrowers must still demonstrate that they can afford the repayments.

According to Mwangi, the bank considers income, existing financial commitments, credit history, employment or income stability, and the value of the property.

📰 Source: Kenyans.co.ke