Young Kenyans can get mortgage loans of up to Ksh10.5 million through a Kenya Mortgage Refinance Company (KMRC) arrangement, with repayment periods of up to 25 years.

🇰🇪 Breaking It Down

The facility allows borrowers to buy a ready house, purchase land and build, or construct a house on land they already own.

Evan Mwangi, Acting Head of Retail Mortgage at Co-op Bank, explained how the KMRC mortgage works during this week's Co-op Bank Youth Forums session.

KMRC provides long-term funding to mortgage lenders, allowing banks to offer home loans at more affordable rates and longer repayment periods.

📌 What You Need to Know

Borrowers apply for the mortgage through the bank rather than directly through KMRC.

Co-op Bank data seen by Kenyans.co.ke has revealed that for a Ksh1 million mortgage, for instance, a borrower would pay Ksh21,001 per month over five years.

The payment falls to Ksh12,939 over 10 years and Ksh8,736 over 25 years.

A Ksh2 million mortgage would require Ksh42,003 monthly over five years, Ksh25,879 over 10 years and Ksh17,473 over 25 years.

For a Ksh3 million mortgage, the monthly payment is Ksh63,005 over five years. It falls to Ksh38,819 over 10 years and Ksh26,210 over 25 years.

Mwangi said borrowers should consider how much they can comfortably commit to repayments rather than focusing only on their maximum borrowing limit.

📰 Source: Kenyans.co.ke