Looking to buy a house in Kenya? Homeownership is probably the biggest decision of your life. There are many consideration factors involved and the most important being the method of payment. You can opt to pay for the house outright if you have the funds. But in most situations, homes are bought via a mortgage.
Understanding mortgages
The way mortgage works are very simple. You select a house of your choice. A financial institution buys the home on your behalf. And you pay the price of the house to the institution in regular installments. In exchange for allowing you to start living in the house without you having paid the full price for it, the institution charges you interest on the price of the house.
Types of mortgages
There are two kinds of mortgages. Fixed-rate mortgages have a fixed interest rate from the first day to the last but are usually more expensive to acquire. A cheaper but slightly riskier alternative is an adjustable-rate mortgage, where the interest rate depends on market conditions and changes from time to time.
Other charges
Apart from the interest rate, there are some other charges associated with mortgages. To name a few, there is usually a negotiation fee, a monthly ledge fee, legal fees, valuation fees, commitment fees, and a stamp duty.
Do you qualify?
The process of getting a mortgage in Nairobi is simple. The first step is to find out if you qualify for a mortgage. Factors like your income, personal expenses, the type of property you want, your age, your credit score determine if you do.
What property do you desire?
Once that is out of the way, the next step is to select a property of your choice. Once a property is selected, you will be assigned an agent who will help you get in touch with the right financial institution.
Time to make a deal
Your application is then processed based on certain documents you submit. After this, the financial institution can make an offer to you. The property is then formally acquired by the institution that you will be availing the mortgage from. Once the property is officially in their name, they can assign a monthly, quarterly, or yearly charge to you, which acts as an installment.
Now that you have an idea of what it takes to be eligible for a mortgage and how to go about opting for one, you’re one step closer to having a home in Nairobi. If you’re on the lookout for an ideal residential project, look no further than Garden City’s latest and most offering.
Mi Vida Garden City Apartment Nairobi is one of the latest residential projects in Nairobi and addresses the shortage of affordable, middle-income housing for families. Over the next five years, it will add upwards of 3,000 homes within a 47-acre spread that is ideal for living, working, and relaxation. This mixed-use development along Thika Superhighway is just a short drive from Nairobi’s central business district. It offers easy access to Jomo Kenyatta International Airport. Know more about Mi Vida here.
