Sabaki Green Estate
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Checklist for obtaining a mortgage in Kenya

ByComplete Circle Properties

Here’s a checklist of qualifications for obtaining a mortgage in Kenya:

1. Age Requirement

  • Minimum age: 18 years.
  • Maximum age at loan maturity: Often 60-65 years.

2. Proof of Income

  • Demonstrate consistent income through employment or business.
  • Employed individuals: Usually need pay slips, employment letter, and bank statements (usually for the past six months).
  • Self-employed: Financial statements, audited accounts, and tax returns (commonly for the past 1-3 years).

3. Credit History

  • Good credit history, usually checked through Credit Reference Bureaus (CRBs) in Kenya.
  • Banks assess your ability and willingness to repay based on your credit score and history.

4. Debt-to-Income Ratio

  • Banks typically require that your monthly mortgage payments do not exceed 40% of your net income.
  • Other debts are also factored in to ensure you aren’t over-leveraged.

5. Down Payment

  • Most lenders require a down payment, usually around 10-30% of the property’s value.
  • Some banks offer 100% financing, but this is rare and may come with higher interest rates.

6. Proof of Identification

  • Kenyan citizens: National ID card.
  • Foreign nationals: Valid passport and possibly work permits.

7. Property Valuation and Survey Report

  • The bank will require an independent valuation of the property to ensure it matches the sale price.
  • In some cases, a survey report may also be required, especially for land mortgages.

8. Legal Documentation

  • Title deed or lease agreement for the property.
  • Sale agreement between the buyer and the seller.

9. Bank-Specific Requirements

  • Some banks may have additional requirements, such as insurance coverage, a minimum income threshold, or special requirements for foreigners.

10. Work Experience (for Employed Applicants)

  • Employed applicants may need proof of continuous employment, often at least 1-2 years with the current employer.

11. Residency Status (for Foreign Nationals)

  • Banks may have specific mortgage products or restrictions for non-Kenyan residents.
  • Foreign nationals might need a Kenyan co-borrower or sponsor.

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