Property developer WestProp Holdings Limited is set to establish a mortgage bank to support long-term housing finance and accelerate its property developments, including the multi-million-dollar Chivhu Eco-City.
The move comes as the developer pushes a new housing finance model anchored on 30-year mortgages for the Chivhu project, in a first in the local market, as most local banks offer far shorter loan tenures that make home ownership difficult for many Zimbabweans.
The proposed mortgage bank would mobilise long-term capital to finance home purchases, allowing buyers to spread payments over three decades while helping the developer scale up large housing projects, WestProp chief executive officer Ken Sharpe said.
This comes as the long-tenure mortgage model has already generated thousands of inquiries since the Chivhu project was announced.
“This is the first time in Zimbabwe in nearly 20 years that anyone is offering mortgages of up to 30 years,” Sharpe said. “It is a unique financing model because people can pay under US$300 a month and buy property over 30 years.”
To support the model, the developer said it plans to create its own mortgage financing structure.
“We have to do it internally. It’s our own mortgages. We are opening a mortgage bank this year. The board has agreed to establish a mortgage bank in Zimbabwe,” Sharpe said.
The planned institution will require significant capital to sustain long-term lending, with WestProp targeting an initial capital raise of US$1 billion.
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“There are indicative possibilities of US$200 million and US$100 million from two parties,” Sharpe said, adding that a team led by the company’s chairperson, Michael Louis, is in Washington, D.C. to meet potential funders
He said the idea to expand mortgage financing emerged from the company’s experience with Pomona City, where it introduced 10-year mortgages to make property purchases more accessible.
“When we started Pomona City, we offered 10-year mortgages because we felt that was what the market needed,” Sharpe said.
The model proved successful and WestProp has a mortgage book of about US$30 million, he said, highlighting the strong demand for long-term housing finance.
“The problem the banks have is long-term money. As a developer, we realised the mortgage product is needed in Zimbabwe,” the property magnate said.
Sharpe said unlocking mortgage financing could significantly stimulate the economy.
The company estimates the country has over US$100 billion worth of real estate with title deeds, suggesting that unlocking just 20% — about US$20 billion — through mortgages could significantly boost economic activity.
“For every dollar of mortgages, it creates about US$3 of economic activity,” Sharpe said.
“If Zimbabwe unlocks US$20 billion in mortgages, the economy could accelerate progress toward becoming an upper-middle-income economy by 2030.”
However, Sharpe cautioned that the success of long-term mortgages depends on a stable currency and policy certainty.
“To do this, we need to guarantee the continued use of the US dollar,” he said.
“The statutory instrument restricting the currency should be removed. The sooner it is lifted, the more confidence lenders will have to offer 30-year financing in Zimbabwe.”
