I&M Bank Drops Mortgage Rate to 16.5%

I&M bank has dropped its home loan base lending rate to 16.5% per annum from its previous 18%. The new move officially kicked off on the 1st of November, 2012 and is part of the bank’s Step Up Loan service.

According to Kenya’s 2nd best mainstream housing lender, the product is designed for clients with undeveloped plots, construction plans, and renovations. It also targets clients wishing to make property purchases.

This comes shortly after the Hass Property Index reported a sharp drop in mortgage rates for the third quarter of 2012.

According to Hass Consult, the average mortgage rate fell to 19% from 22.5% during this year’s second quarter.

The Index highlights Barclays Bank as the best mainstream housing loan provider with a mortgage rate of 15.5%. National Bank and Chase Bank currently charge 22%, making them the country’s most expensive mortgage lenders.

Below is a table of the country’s top 10 best lenders according to data from Hass’s Property Index:

Bank Interest Rate *Mid October 2012 Change in Rates Since June 2012
  1. Barclays
 15.5% -6.4%
  1. Standard Chartered
 16.9% No change
  1. I&M
 18% -1.5%
  1. KCB S&L
 18% -1%
  1. HFCK
 18% -5%
  1. CFC Stanbic Bank
 18.5% No change
  1. Bank of Africa
 19% -3%
  1. CBA
 19% -5%
  1. Diamond Trust Bank
 19% -5%
  1. Co-operative Bank
 19.25% -4.5%
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