UGANDA, Kampala | Real Muloodi News | Rising rental costs in areas like Najeera, Ntinda, Kira, and Namugongo are pushing Ugandan tenants to consider alternative solutions to secure housing.
Many are now turning to financial institutions, particularly banks, to obtain loans for building their own homes. The burden of ever-increasing rent has become a significant concern for individuals living in these areas.
Isaac Mombwe, a resident of Kira Municipality, reveals “This year, my landlord has increased the rent twice. We are now paying USh1.2m. Whoever tries to complain is advised to vacate and find cheaper places.”
To tackle the issue of high rental fees, an increasing number of Ugandans are exploring mortgage financing. Some are taking loans from banks, while others are constructing their homes incrementally using their savings.
Racheal Namusoke, a secondary school teacher, chose to rent a more affordable house for five years. During this period, she is dedicating a substantial portion of her income to complete her home before her two daughters start high school.
When applying for a mortgage, commercial banks assess various factors, including the type of house under construction and its Bills of Quantities.
Anord Lwabi, the marketing and operations manager of Aethetic Developers Ltd, explains that to qualify for a mortgage from most commercial banks, individuals must earn over USh4 million per month.
However, some banks, like dfcu bank, offer home loans to aspiring homeowners. Christopher Akugizibwe, the manager of home loans at dfcu bank, says the bank offers valuable insights into the world of home financing through its unmatched home loan offerings.
Here are some key options for mortgage financing:
Buying a Residential Property:
This loan is provided for the purchase of a residence, such as a primary, secondary, or investment residence.
Constructing/Renovating a Residential Property
This financing is for building a residential property.
Releasing Equity on Residential Property
This option allows property owners to access funds from their residential property for personal use.
Refinancing a Residential Property
This entails paying off an existing loan with a new one. It may shorten the loan term and reduce repayments.
The eligibility criteria for dfcu home loans include:
– Salaried employees with confirmed employment.
– Ugandans in the diaspora with verifiable incomes. These individuals must be employed and have verifiable income, demonstrating their ability to manage the home loan while living abroad.
To gain further insights into mortgage financing and home loans, consider visiting the Homes & Construction Expo 23, scheduled to take place on November 25 and 26 at Kololo Airstrip.
This event aims to facilitate open interactions between the public and experts from the construction field, including engineers, architects, decorators, lawmakers, gardeners, and other industry stakeholders.
This year’s expo, themed “Innovation, Standards, and Opportunities,” will unveil modern construction trends, energy solutions, construction tips, interior décor, and related services available in the market.
Attendees can explore quality and genuine products and services offered at discounted prices. The entrance fee for the expo is USh10,000, which provides access to workshops on topics like land acquisition, building, and real estate investment.
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