UGANDA, Kampala | Real Muloodi News | Christopher Akugizibwe, the Manager of Home Loans at dfcu Bank, provides valuable insights into the world of home financing and dfcu Bank’s unmatched home loan offerings.
Understanding Home Loans
Christopher Akugizibwe says, “At dfcu Bank, we understand the diverse housing needs of our customers, and we are committed to providing tailored solutions. We offer a range of home loan products designed to cater to various housing requirements.
He adds, “Our portfolio includes options for Buying a Residential Property, Constructing/Renovating a Residential Property, Releasing Equity on a Residential Property, and Refinancing a Residential Property. Our team of experts is here to guide you through the process, ensuring a seamless and rewarding journey to homeownership.”
Eligibility Criteria
Dfcu has designed an eligibility criteria to accommodate individuals with diverse financial situations namely:
Salaried Employees with Confirmed Employment
Whether you are a first-time homebuyer or looking to upgrade, if you are a salaried employee with a confirmed employment status, you are eligible for our home loans.
Self-Employed Individuals with 24 Months of Sustainable Business
Entrepreneurs and self-employed individuals who have successfully operated their businesses for at least 24 months with sustainable cash flows can apply for our home loans.
Ugandans in the Diaspora with Verifiable Incomes
Ugandans residing abroad in the Diaspora can secure a home loan if they are employed and have verifiable incomes.
Expatriates in Uganda with Valid Work Permits
Expatriates living and working in Uganda with valid work permits are also eligible for our home loans. Verifiable incomes are essential in this case.”
Benefits of dfcu Bank’s Home Loans
Dfcu home loans offer numerous benefits to borrowers, making homeownership more accessible:
Long Repayment Period
Enjoy a repayment period of up to 20 years, ensuring manageable monthly instalments.
High Loan Amounts
Access up to 85% of the open market value, making your dream home more attainable.
Affordability
Loan repayments are structured to be up to 50% of your ascertainable net income, ensuring affordability.
Predictable Monthly Installments
The loan is payable on a reducing balance basis in equal monthly instalments, providing financial stability.
Competitive Interest Rates
Benefit from competitive interest rates, both locally and internationally.
Dedicated Support
You will have a dedicated relationship manager, 24-hour response times, and a short waiting period of just 14 working days between application and receipt of funds.
Financial and Advisory Services
Access financial and advisory services at no cost.
Flexible Repayment Terms
Enjoy flexible repayment terms tailored to your financial situation.”
Real Estate Partnerships
According to Christopher Akugizibwe, dfcu Bank does not directly sell properties, but have established strong partnerships with reputable property developers and agents across Uganda.
Mr Akugizibwe says, “Our clients benefit from an extensive network and a diverse range of real estate options in both traditional and emerging suburbs. Our partners provide expert guidance and a seamless acquisition process, ensuring efficiency and professionalism from start to finish.”
Understanding Mortgage-Related Costs
It’s crucial to be aware of the associated mortgage-related costs when considering dfcu Bank’s home loans.
These costs include valuation fees, security perfection fees, stamp duty payable to various regulatory and statutory bodies, insurance costs, and bank fees.
Factoring in these expenses is essential to make informed financial decisions and ensure a transparent home ownership process.
Contributions
Your contribution toward your home ownership journey depends on your specific circumstances and the nature of your property transaction:
If it is a property purchase typically, your contribution will be 15% of the property’s market value.
If you plan to undertake construction, your contribution should amount to approximately 30% of the property’s market value.
These contribution percentages align with the type of property transaction you pursue, ensuring a fair and manageable financial commitment.
Transferring Your Mortgage to dfcu Bank
Mr Akugizibwe says, “f you wish to transfer your mortgage from another bank to dfcu Bank, we will approve your application (subject to meeting criteria) and then send funds to the other bank to pay off your existing mortgage and release your title to dfcu Bank.”
Joint Home Loans
You can apply for a joint home loan with another party as long as both your income sources can be verified.”
Acceptable Security for Home Loans
For landed residential property, acceptable security includes cash cover/fixed deposit.
Using a Windfall to Reduce Your Mortgage
A windfall provides an opportunity to either re-invest the money elsewhere or reduce your loan obligation with the bank.
To reduce your loan according to Mr Akugizibwe, you can approach the bank through your Relationship Manager and request the facility to be reduced.
Getting Another Mortgage with an Existing Loan
You can get another mortgage if you already have an existing loan, as long as your income and collateral are sufficient to service both facilities concurrently.
Mortgage for Land Purchase
According to the Manager of Home Loans at dfcu Bank, you can get a mortgage to buy land.
In this case, the home loan will be an equity release, where the bank takes your residential property as collateral and release equity on it to allow you to buy the land of your choice.
Paying Installments
In cases of failure to pay installments, an engagement with the customer is held to reach an agreement.
The best option is often a restructure of the facility based on the causes of the failure to pay, allowing the customer a better option to make installment payments going forward.
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