In a significant stride towards promoting homeownership and financial inclusion, several prominent banks in Kenya have announced partnerships with Mi Vida Homes, a leading real estate developer in Nairobi. These partnerships aim to revolutionize the real estate and banking sectors by providing individuals with unprecedented access to mortgage loans, making the dream of owning a home in Nairobi a reality for many.
Nairobi has witnessed a surge in demand for affordable housing in recent years. However, the financial constraints associated with purchasing a home have often remained a significant hurdle for aspiring homeowners. In an effort to address this issue, Mi Vida Homes, known for its commitment to quality, affordability, and on-time delivery, has collaborated with several esteemed banks to provide customized mortgage solutions.
- Standard Chartered – offering 14.25% interest rate with a 30% discount on closing costs.
- NCBA Bank – NCBA customers can access interest rates of as low as 9.5% with up to a 25 year repayment period.
- Stanbic Bank – offering 9.5% fixed rate for up to 25 years so long as loan amount is not above 8 million Kes; also providing financing of up to 95% for diaspora Kenyans.
Mi Vida Homes also has partnered with several other notable Kenyan banks including Absa Bank, I&M Bank, KCB, Co-Op Bank, HF Group, Gulf Bank and Equity Bank. For more details on what each bank is offering to Mi Vida homebuyers, you can connect with Mi Vida Homes here.
How does this compare?
In 2022, the CBK found that the average loan maturity for mortgages was 10.9 years with a range from 5 years to 18 years. The average interest rate charged for mortgages in 2022 was found to be 12.3% with a range from 8.2% to 17%.
According to the Central Bank of Kenya’s Bank Supervision Annual Report 2022, Kenyans cited that the high cost of property purchase and limited access to affordable long-term financing, were two of the top three factors keeping them from obtaining a mortgage loan.
Mi Vida has also been working closely with the Kenya Mortgage Refinance Company (KMRC), a financial services company founded in 2018 with the purpose of providing financing to Kenyan banks to better enable them to offer more affordable mortgage loans.
Combining Mi Vida Home’s mission to be the preeminent and most-trustworthy developer of affordable housing with partner banks offering special rates to Mi Vida buyers, both of these obstacles to mortgage access are being addressed.
Benefits to Homebuyers
These strategic partnerships between Mi Vida Homes and the aforementioned banks will bring a plethora of benefits to prospective homebuyers:
- Affordable Financing: Access to tailored mortgage solutions with competitive interest rates will make homeownership more affordable for a broader segment of the population.
- Quality Homes: Mi Vida Homes has established a reputation for constructing high-quality, well-designed homes that cater to various needs and preferences. This partnership ensures that aspiring homeowners can acquire not only financing but also a dream home.
- Streamlined Process: The collaboration will simplify the mortgage application process, making it more efficient and less intimidating for first-time homebuyers.
- Financial Inclusion: By expanding access to mortgage loans, these partnerships contribute to financial inclusion, empowering more Kenyan citizens to invest in their future.
- Stimulating Economic Growth: Increased homeownership has the potential to stimulate economic growth by boosting the construction and real estate sectors, creating job opportunities, and increasing overall economic stability.
The Path Forward
The banking partnerships with Mi Vida Homes mark a significant milestone in addressing the housing crisis in Nairobi, Kenya. Aspiring homeowners can now embark on their homeownership journey with confidence, knowing that they have the support of reputable banks and a trusted real estate developer.
This groundbreaking initiative has the potential to change the lives of countless individuals and families in Nairobi, as they take their first steps towards owning a place they can call home.
*For more information on Mi Vida Garden City, reach out to Mi Vida directly to see how you can capitalize upon this unique offer.*