According to a report released on Wednesday by The Mortgage Company, I&M Bank is the cheapest mortgage provider in the country. I&M is retailing mortgages at 19%. Bank of Africa on the other hand was ranked most expensive as it retails mortgages at 28%.
Last year the rate on mortgages went up in response to the Central Bank’s increase of the CBR from 7% to 18% o curb inflation. This 9% increase made it more expensive for commercial banks to access borrowing from the CBK and resulted in an increase of the rates of interest on the financial products offered by the banks, this included mortgages and ordinary loans advanced to the public.
The number of Kenyans taking mortgages has been on the steady increase over the last few years and the results of this report will assist possible home owners to gauge the market of providers and choose the provider with the most attractive interest rate.
Read more about this report in the Business Daily.