Both employed and self-employed members of a pension scheme are eligible to access this product provided they intend to acquire a residential house that is ready for occupancy.

This product only applies when buying a residential house The product also does not apply for construction facilities

This product allows for joint applications for spouses under the same or different pension schemes

This is to ensure that the 40% of accessed pension funds are not diverted but fully utilized into acquisition of a property and to avoid transfer of the house to a third party

The member/buyer caters for the cost of charging the property to the pension scheme too.

There are no penalties for early redemption and accelerated loan repayment. If anything, the member gets to save by redeeming their loan early since interest payable within the shortened period lowers significantly.

This facility is only applicable once

This product cannot be applied to offset an existing facility.

No. Closing costs are to be catered for separately by the member.

No. This product is applicable for members still in active employment and yet to attain retirement age, since the 40% of accrued pension benefits is released as a down payment for a house to be paid for in cash or paid as a mortgage over the remaining number of years to retirement.

Yes. Any member below the retirement age is eligible for this product as long as the 40% of accrued benefits is sufficient to cover the entire purchase price.

However, for members whose 40% of accrued benefits is not sufficient, the approval will be based on the ability to repay.

1. Commitment fees for the mortgage.
2. Stamp Duty for transfer of property – 4% of property value for Nairobi, Mombasa and Kisumu and 2% of property value for upcountry properties.
3. Stamp duty for registration of charge –  1% of the loan amount.
4. Legal Fees –  between 1.5% and 2% of the loan amount.
5. Valuation fees –   Approximately 0.25% of the Property Value.
6. Insurance fees –    for life cover over the applicant’s life and for fire (and other perils) over the property taken as security for the mortgage.

Any residential property that befits your style, income and meets your need for a home. This could be a bungalow, maisonettes, town house or apartment.

Yes. The bank may accept an apartment as security for a mortgage, provided the apartment has a sublease on the land it sits on. In Kenya, this is acceptable proof of ownership which a Bank may charge as security for a mortgage.

Yes. The bank may accept an apartment as security for a mortgage, provided the apartment has a sublease on the land it sits on. In Kenya, this is acceptable proof of ownership which a Bank may charge as security for a mortgage.

Up to 20 years for employed, subject to retirement age

The Bank would finance the lower of the value or the sale price.

Interest rate on this mortgage product is variable but computed on reducing balance. One is free to prepay the mortgage by making lumpsum payments or redeeming the balance as there are no penalties for this.

Yes, provided the property is within major towns and has a title deed/certificate of lease as proof of ownership.

Yes; Your past credit history plays a major part, as negative credit listings may affect your chances of getting a loan approval from the Bank.

One of the covers we have in place for the mortgage is the life cover, which carries a retrenchment rider, such that in the event of retrenchment, Insurance steps in to make the monthly mortgage instalments for 6 months.

In the event of death while still servicing the mortgage, insurance comes in to redeem the mortgage by clearing any outstanding mortgage balance. This would in effect mean that the property under purchase would be discharged to the next of kin.

Where the rates and rents are applicable, you should continue paying them to the respective jurisdictions as they are payable by the property owner. Remember, with a mortgage, the property is registered in your name  but charged to the Bank as collateral for the mortgage.

The maximum amount you can qualify for is dependent on your ability to repay based on the payslip, existing rental income or existing business income.