STANBIC Bank Zimbabwe has introduced a new mortgage dubbed “home loans” repayable over a 20-year period, as part of its programme to reduce the housing backlog in the country.
BY TATIRA ZWINOIRA
Head of personal and business banking, Brian Ndadzungira said the bank was geared to play its part in helping potential home-owners have their own roofs over their heads.
“Stanbic Bank is aware that everyone dreams of having their own place to come home to and we are offering potential home-owners an opportunity to make that dream a reality. In addition, we also offer loans for home improvements for existing house owners. This will enable one to renovate or improve an existing property,” he said.
The loan repayments will be lower than rentals for comparative properties and will come with life and property insurance cover.
Under the programme, potential clients have to produce acceptable title deeds.
Ndadzungira said one can have a joint application of the loan with their spouse, making it more affordable for couples who pool their financial resources.
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He said given that buying a home can be complex and stressful, Stanbic Bank has a means to lessen the financial burden.
“To ensure commitment from the buyer, our home loans come with a deposit commitment from the client. This means the prospective home-owner has to raise part of the price of the house. Stanbic will allow you time to raise the deposit required. We have savings and investment product offerings that can assist you to raise the deposit,” Ndadzungira said.
Mortgage lending has been very low in Zimbabwe, but many financial institutions were now coming on board introducing home loans.
In the Reserve Bank Economic review ending November 20, weighted commercial bank lending rates for individual and corporate clients increased from 10,91% and 7,31%,to close the week under review at 10,93% and 7,77%, respectively.
