How to Finance Your Home Purchase in Kenya: Mortgage Options Explained
Mortgage Solutions for Your Dream Home in Kenya
Financing your dream home doesn’t have to be daunting. At Boma Bora, we simplify the process by providing insights into the best mortgage options available in Kenya. Whether you’re a first-time buyer or an experienced homeowner, choosing the right financing plan is key to securing your ideal home without financial stress.
Explore the diverse mortgage options below and discover tips to make informed decisions: Popular Mortgage Options in Kenya.
Fixed-Rate Mortgages
Predictability is key with a fixed-rate mortgage. The interest rate remains constant throughout the loan term, ensuring your monthly payments stay stable. This is perfect for buyers who want consistent repayments over time.
Adjustable-Rate Mortgages (ARMs)
An ARM starts with a lower interest rate for an initial period, offering short-term savings. However, the rate adjusts based on market trends, which could lead to fluctuations. Ideal for buyers who plan to sell or refinance before the interest rate increases..
Balloon Mortgages
Looking for low initial payments? A balloon mortgage provides just that, with a lump-sum payment due at the end of the term. This is best suited for buyers expecting higher future income or planning to sell the property before the balloon payment is due.
Kenya Mortgage Refinance Company (KMRC)
KMRC offers affordable home loans through partnerships with banks and SACCOs. Designed for first-time buyers and affordable housing seekers, these mortgages come with competitive interest rates.
Government-Backed Mortgages
Through programs like the Affordable Housing Program, government-backed mortgages provide low-interest loans with extended repayment terms, making homeownership accessible to low- and middle-income Kenyans.
Islamic Financing (Shariah-Compliant Mortgages)
For buyers seeking interest-free options, Islamic mortgages use profit-sharing models. Buyers and lenders co-own the property until payments are complete, at which point full ownership is transferred.
How to Choose the Right Mortgage
- Compare Interest Rates: Shop around to find the most competitive rates across different lenders.
- Assess Loan Terms: A longer loan term may lower your monthly payments but increase overall interest costs.
- Account for Fees: Look beyond interest rates and consider all associated costs, including legal, appraisal, and closing fees.
At Boma Bora, we don’t just help you find your dream home—we help you secure it.
Let Boma Bora Guide You Home
Whether you need advice on choosing the right mortgage or assistance with the application process, our team is here for you.
Fill the contact form for expert guidance and personalized solutions.