Purshottam Developers and Stanbic Bank Kenya have entered a structured mortgage finance partnership that will enable customers to own homes in Ruaka at an affordable cost.
Kenyans will be able to acquire the 1-, 2- and 3-Bedroom apartments with a standard minimal deposit and subsidized mortgage loan interest at 9.5% for loan amounts below Kshs 8M as part of the Kenya Mortgage Refinance Company (KMRC) and Stanbic Bank Kenya partnership.“Under this partnership customers will access competitively priced mortgages with lower monthly repayments. Our strategic focus is to help bridge the home ownership deficit across the country as the country’s national housing goals,” Purshottam Developers Managing Director Jayesh Chavda.
Austin Waga head of Mortgages at Stanbic said the partnership will help Kenyans access good quality homes at an affordable mortgage rate.
Stanbic Bank Kenya is also one of the only banks to offer 105% financing for properties under Kshs 20M. According to the Kenya Banker Association (KBA), Stanbic Bank Kenya Limited was the second-largest primary mortgage lender in Kenya, with a market share of 13.1%, after Kenya Commercial Bank Kenya Limited (KCB).
The agreement comes on the heels of the state-backed Kenya Mortgage Refinancing Company’s (KMRC) successful corporate bond issuance to raise long-term capital. KMRC’s aim is to lower mortgage interest rates and lengthen repayment tenors, making housing more affordable and improving the viability of home loans as a pathway to homeownership for Kenyans.
The Apartments commenced construction in December 2019 and will be open for occupation by end of April this year.