By David Kaveke
There have been many questions regarding those in the Diaspora and whether they can easily access mortgage facilities. This week we answer some of those nagging questions regarding access to mortgage facilities.
Q: Who is a Diaspora client?
A: A client in Diaspora is any non-resident Kenyan or foreigner who would like to enjoy banking services and products provided in Kenya. Many financial institutions have both mortgage and savings products to suit their needs and at the same time provide convenience and return on investment.
Q: What mortgage products do I qualify for while in the Diaspora?
A: Depending on the financial institution there are a range of mortgage product, which include property (plot, apartments, and houses) purchase, construction of residential and commercial houses among others.
For example, Housing Finance can finance up to 85 per cent the price of the property.
Q: Do I need a power of attorney to apply for a mortgage?
A: No. The process is designed in a way that you do not need a power of attorney to take up a mortgage in Kenya. The whole transaction can be done while you are away.
Q: If I have already changed citizenship, do I qualify for a mortgage?
A: Yes you do. Under the new Constitution, dual citizenship is allowed. As long as you have a valid Kenyan passport and a valid foreign passport you can apply for a mortgage.
Q: Can I start saving for a mortgage while abroad?
A: Yes. There are savings accounts targeting those who would like to save towards owning a home.
Q: What is the process of applying for a mortgage?
A: The first step towards applying for a mortgage is to provide your income details to the bank, that is, your net income, living expenses and rental income if any. The bank will appraise you and advice on the loan amount you would qualify for. This will enable you to budget and look for a property you can comfortably pay for. Once you have identified a property, you will need to submit your full application for approval.
Q: How can I get a property in Kenya?
A: There are many sites on the Internet that will offer a one-stop property shop. They will showcase a wide range of properties from various property suppliers in Kenya, thus enabling customers to access and choose from the database. Others like Housing Finance’s Property Point has also entered into strategic partnerships with suppliers of building and construction materials such as cement manufacturers, tiling, paint manufacturers, cabling to make all these services accessible at negotiated discounts.
The writer is Head of Mortgage Finance, Housing Finance
