Co-op Bank Rolls Out Affordable Housing Loans for Aspiring Home Owners

Co-op Bank customers are now one step closer to their dream of owning their own homes. In a partnership with Kenya Mortgage Refinance Company (KMRC) signed on March 23rd, Co-op Bank has rolled out an affordable housing financing scheme.

Customers now have access to mortgage financing for either a complete, newly-built residential house or purchase and build on a plot of their choice.

How does a Customer become Eligible for the Mortgage?

It’s quite straightforward. As long as you have a Salary or Savings Account with Co-op Bank, you are good to go. The other specifics are:

  • Six (6) months’ banking with Co-op Bank
  • A maximum household gross income of Ksh150,000.
The Head of Legal Services at Kenya Mortgage Refinance Company Elisha Nyikuli, the Director, Corporate & Institutional Banking at Co-op Bank Jackie Waithaka & the CEO National Co-operative Housing Union Mary Mathenge at the stakeholder’s meeting.

What are the Eligible Products?

  • Purchase of a ready-to-use residential house.
  • Purchase a plot: Buy and build arrangement.

What are the Terms of the Loan Units to be financed?

This is what you need to know about the housing mortgage financing package:

  • A loan financing for one (1) unit property under purchase is offered with a considerate interest of 9.9% per annum on a reducing balance.
  • The loan attracts a one-off facility fee of 2% of the loan amount.
  • The maximum loan tenure is 15 years for employed applicants, and 10 years for self-employed applicants.
  • For properties around the Nairobi Metropolitan, minimum loan amount is Ksh.500,000 and maximum limit at Ksh.6 Million.
  • For customers looking to invest in real estate outside the Nairobi Metropolitan, they have a maximum loan limit set at Ksh.5 Million.

Besides, Co-op Bank offers flexibility in financing through loan top ups. A loan top-up under the commercial rate is allowable for a customer upon repaying the initial loan for at least 12 months.

Apply now via or visit and speak with bank representatives at your nearest Co-op Bank branch.

About this writer:

Kibaki Muthamia

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