HomeNewsCABS Budiriro Housing project: Disbursement of loans begin

CABS Budiriro Housing project: Disbursement of loans begin

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CABS has so far disbursed 85 out of the 214 approved loans for the Budiriro Housing Project totaling $1,6 million, a senior staffer has said.

VICTORIA MTOMBA
BUSINESS REPORTER

Speaking in Harare, last week CABS managing director Kevin Terry said: “Disbursements are continuing as we process the loans. Despite the liquidity challenges that we are facing, the demand for mortgage finance is generally high and we have had a lot of interest and enquiries coming through.”

Terry said the first 85 beneficiaries would be moving into their four-roomed houses starting this week.

Two-roomed houses from Budiriro cost $22 000 and the deposit is $5 874, while the four-roomed houses cost $27 000 and the deposit is $7 258.

Terry said applicants in some cases faced difficulties in raising the required deposit, but others received employer assistance to raise the required deposit.

CABS signed a memorandum of understanding with Harare City Council last year to set up a $15 million housing fund in Budiriro that would see the construction of 3 000 low-cost housing units.

The building society increased its tenure on mortgage loans to 20 years from 10 years this year.

Terry said the bank requires a 25% deposit for the total mortgage from homeseekers.

Early this year Terry indicated that the group would lend $100 million this year and the funds would be demand-deposit driven.

Zimbabwe Association for Housing Finance statistics shows that in 2013 mortgage lending stood at $84 million up by 29% from 2012.

The interest rates for the mortgage stood at between 10-20% in this market.

Zimbabwe has a housing backlog of over 1,2 million and government through Zimbabwe Agenda for Sustainable Socio-Economic Transformation has indicated that it seeks to construct 25 000 houses a year until 2018.

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