Frontpage Slideshow | Copyright © 2006-2010 JoomlaWorks, a business unit of Nuevvo Webware Ltd.
The Mortgage Company,
The Greenhouse, 2nd Floor
Adams Arcade, Ngong Road
P.O. Box 29310-00100, Nairobi

Tel: +254 729 933955, +254 737 933955
Email: info@tmcafrica.com
www.tmcafrica.com
WATCH TMC VIDEO
HOW CAN I REDUCE THE COST OF MY MORTGAGE?

The Mortgage Company, being the first independent mortgage brokerage firm in East Africa has found itself trying to find solutions for both the developers and mortgage buyers…scanning the market for any opportunities to get customers solutions that make financial sense. Although we have managed to get customers fantastic savings during this time, we are also challenged to find long term sustainable solutions.

Let us attempt to offer customers “first aid” as we search for longer term options that will guarantee customers a good night’s sleep
Firstly, it would be prudent to take a fixed rate mortgage at this time. This would ensure that you can plan your repayments over the long term and avoid the risks of market fluctuations. Although these are few and far between, we can help you find a suitable financier to avail the facility.

Secondly, we can review your current mortgage and assess refinancing options that are open to you. You may be surprised that you can restructure your current facility to make it more tenable especially during these uncertain times.

Thirdly, it would help to look at your entire borrowings and see whether you do need to pay off the more expensive debts or consolidate the same. Our mortgage experts at TMC can help you review your current circumstances and recommend the best way to restructure your facilities to optimize the repayments.

For developers it would be important to review your development objectives to see how best to structure your development whether to phase it, structure the financing differently or get an equity partner instead of debt. It will be crucial to ensure that you have a clear take out of your units by getting a strong partner to work with you on end user financing. TMC has solutions for both and will on a best effort basis assist you think through the best structure for your development finance and ensure that you have a clear take out from the onset.

 
More Articles :

» Speech by Caroline Kariuki,Managing director of Mortgage Company on mortgage report in kenya

Speech by Caroline Kariuki,Managing director of Mortgage Company on mortgage report in kenya Caroline Kariuki, Managing Director,The Mortgage Company Thank you, Farhana, Ladies, Gentlemen, and members of the press, for your time and interest today...

» Mortgage broker forays into Kenya

An independent mortgage brokerage firm has entered Kenya’s mortgage market with a view to deepening property ownership and mortgage uptake in the country. The Mortgage Company (TMC Africa), the first mortgage broker in East Africa, hopes to...

» What happens to my mortgage repayments if I should be retrenched?

With the difficult economic times it is not surprising to be retrenched 2-3 times in your career. However, this should not stop you from owning a home. At TMC we have recently made innovations in our work with some insurance companies to develop a...

» 3 facts about Experienced Developers

A good location doesn't mean the best area in town when you are a developer. If you buy in the centre of the best area then you are going to pay the highest price and that doesn't leave you any room to make a profit. Some of the most successful...

» 3 facts about Commercial Developments

Options you have for your commercial development finance include property refurbishment, property conversion, new building project and purchase of land.Financing options is provided depending on your worthiness, background, and possible outcome of...

FacebookTwitterLinkedin

Did you know

Buy-to-let gains recovering as

mortgage prices fall

  • Mortgage rates have dropped sharply in the last two months
  • The best mainstream mortgage offer is now Barclays at 15.5 per cent
  • The highest mainstream mortgage offers are now from National Bank and Chase Bank at 22 per cent
  • The comprehensive cuts have seen the average mortgage rate move to 19 per cent, from 22.5 per cent in the second
    quarter
  • Foreign currency mortgages are being made available at much lower rates still, from 9 to 10.25 per cent, but carry
    heavy exchange rate risk
  • The third quarter brought a sharp recovery in the combined returns from rents and house price rises for buy-to-lets, to
    13.12 per cent in September, up from 6.81 per cent in June 2012

Mortgage rates declined, in some cases by as much as 6 percentile points, in the third quarter of 2012, reported The
Mortgage Company in its quarterly mortgage report.
At the same time, the returns from buy-to-lets jumped sharply, significantly narrowing the gap between returns and
borrowing costs.
The biggest rate cuts since June came from Barclays, which cut its mortgage rate by 6.4 percentile points, to offer the
currently lowest mortgage rate in the mainstream market, at 15.5 per cent.
Other notable cuts came from HFCK, which cut its rates by 5 percentile points to 18 per cent, and Equity Bank, which cut
its rate by 3 points to 21 per cent.
However, many mainstream banks were slow to follow, finally announcing cuts this week. This latest realignment has
moved the average mortgage rate to 19 per cent, and sees National Bank and Chase Bank topping the league for the
country's most expensive mainstream mortgages, at an annual interest rate of 22 per cent.
“Some mortgage takers are really suffering through holding mortgages with some of the country's most expensive
suppliers - in some cases now paying several hundred thousand shillings in extra interest payments a year,” said Ms Carol
Kariuki, the MD of The Mortgage Company (TMC).
“This, alone, brings home the need for full information flows on the different mortgage rates available in the market, so
that consumers can choose genuinely competitive mortgage offers,” she said.
TMC also published its first league table on the foreign currency mortgage rates available in Kenya from I&M Bank, CFC
Stanbic, CBA, Equity Bank and Bank of Africa.
“With interest rates on these mortgages running at between 9 and 10.25 per cent, these mortgages are currently far
cheaper than shilling-denominated mortgages, but mortgage takers need to take great care with foreign currency
mortgages, where repayments are in dollars, pounds or Euros. When the exchange rate moves against them, it can leave
them carrying huge extra burdens in buying the foreign currency for their mortgage repayments,” said Ms Kariuki.
For mortgage financed landlords, who for the last decade, were earning more from rent and house price appreciation
than they were paying in mortgage interest, the last year brought a marked dip into negative returns.
However, the gap between gains on buy-to-let houses and pay-outs on mortgage interest narrowed sharply in the third
quarter, with buy-to-let returns climbing to reach 13.81 per cent by September, from 6.81 per cent in June.

Total returns on mortgaged house purchases

A comparison of the costs of a variable mortgage, versus the gains in house price appreciation and rental
income in each year.

How recent rate cuts are leading to

big savings on repayments

Scenario: A Kshs. 10m mortgage (20% deposit) over 20 years based on the
best rate available at that time.

SNAP SHOTS

A 3.5% rate cut from April 2012 to October 2012 led to a 16.5% reduction in monthly repayments.
A 2.1% rate cut from April 2012 to July 2012 led to a 11% reduction in monthly repayments.
A 1.4% rate cut from July 2012 to October 2012 led to a 6% reduction in monthly repayments.

Preferential Rate Mortgages

Did you know that high net worth individuals and preferential clients can sometimes get better rates?

Mortgages available to the diaspora

At a glance, banks best rates for foreign currency mortgages available to those earning an income in
US Dollars, GB Pounds or Euros including but not limited to the diaspora.

How Kenyan property yielded better returns for the diaspora

over the last ten years

Scenario: Buying a Kshs. 10m home in Kenya with a 20% deposit and a 9%* interest rate over a 10 year period yielded
a return of Kshs. 18.9m while buying a home in the US with a 20% deposit and a 3%* interest rate over a 10 year period yielded
a return of Kshs. 3.7m. This is because property in Kenya over the last ten years has appreciated on average 331%
versus 50% for US properties. *Return is calculated by subtracting total cost of home from value of property at period end

Talk to us

First time buyers promise

  • Learn about mortgages
  • Guide you through the process
  • Help you on get on the property ladder

Speak to our friendly experts
Call +254 729 933955
Click tmcafrica.com