Co-Operative Bank of Kenya wants you to achieve that dream of owning your own home by offering you their Co-op Bank Good Home Mortgage loan.
The Co-op Bank Good Home Mortgage loan, offers you a maximum of 95 percent of the mortgage value, hence you will only need to have a minimum of 5 percent of the amount if your property is for owner occupation. Co-op Bank will consider a maximum of 50 percent of your income as that to be applied to repay the facility. Costs associated with the process will amount to about 7 percent of the facility’s selling price.
The Co-op Bank Good Mortgage loan gives a clean title that is free from encumbrances and where all land rates and rent are cleared. For Co-operative societies, requirements depend on the product chosen and the borrowing power limits. An account with Co-operative Bank to allow you easier access to the Good Home Mortgage.
Co-op Bank Good Home Mortgage loan is unique in its own way as compared to other offerings that are already in the market because:
- It does upfront disclosure of all the processes and charges for your benefit.
- It combines both variable and fixed rolling mortgages, which gives you the benefit of choosing what interest regime is good for you. In short, it has a two-in-one mortgage facility.
- For co-operative society members (SACCOs), it offers support so that they can in turn lend to you as a society member.
- It has special products targeting the rural population who would like to develop affordable but decent homes. These include offering wholesale mortgages and technical support to housing co-operatives to lend to their members.
- It has redefined turnkey projects to also include individuals who team up and wish to construct houses under structured projects for owner occupation.
- It will avail a partnership mortgage with the co-operative societies to enable them easily mobilize their members and give them affordable housing.
- It offers term-based pricing which recognizes the time value of money and passes the benefit to our customers with very competitive rate
The Good Home Mortgage has various features, tailored to suit individual needs and to make loan repayments more comfortable. These features include:
- Good Faith Estimate
This is a document provided by The Co-operative Bank to Good Home Mortgage Customers, showing how an estimate that includes an itemized list of fees and costs associate with your mortgage loan. The Good Faith Estimate is, however, just an estimate.
Often, parents and their children wish to purchase properties together. The parent is nearing retirement and their children have started working. This option helps such customers combine their incomes and take a long-term home loan, wherein the installment reduces in amount upon the retirement of the earning parent.
- Project Certification
The project approval facility provides customers the comfort of purchasing properties from builders who have complied with all basic documentation. Co-op Bank will issue prospective buyers with a Good Home Buyer’s Guide to enable proper evaluation of what is available.
- Accelerated Repayment Scheme
The scheme offers the customer a great opportunity to repay the loan faster by increasing the monthly installments. Whenever you get an increment in your disposable income or have lump sum funds for loan repayments, you can benefit by saving on interest to be paid.
- Fixed and Variable Rates
Co-op Bank Good Home Mortgage loan rates are quite flexible and competitive that are fixed and variable, thus are dependent on the term of the mortgage. Rates range from from 19.25 percent to 20 percent p.a (All on reducing balance) for individuals who want to buy owner-occupied houses, whereas for organizations wishing to buy commercial properties for investment, the rates are flexible depending on the security and term of the facility. Co-operative society members will enjoy a discounted rate depending on the choice of product
For one to qualify for the Co-op Bank Good Home loan, self-evaluation is the first step. This means that you need to evaluate your current and future needs, especially the kind of home you are looking for in relation to your projected future income. The Good Home Mortgage matches your needs to the product specification. Requirements will then be drawn up based on various key factors like type of property to be acquired, the value, location, age of the borrower and income details, among others.