Absa Bank to offer mortgage customers an extended repayment period of up to 25 years
June 16, 2021
- 25-year tenor is the longest repayment period in the market
The proposition seeks to increase mortgage uptake by prospective homeowners, offering options towards home ownership such as construction loans and home loans for self-employed individuals (SMEs) with a dedicated team of experts who will walk customers throughout every step of buying or constructing their dream home.
Absa customers will also benefit from established partnerships with players in the home ownership value chain such as property developers, furnishing partners and home appliance partners, who will offer homeowners a wide range of benefits including great discounts.
This was announced as the bank signed a financing partnership with Mi Vida Homes where customers will enjoy a discounted rate of 12.5% p.a. with up to 90% financing.
Speaking during the signing of the Absa-Mi Vida partnership, Peter Mutua, Absa Bank Customer Network Director, urged both existing and prospective customers to invest in the lengthened payment period and low interest rates of the Absa - Mi Vida mortgage proposition to own their dream homes.
“As a truly African bank, we understand that home is where the heart is. This is why we have availed the Absa - Mi Vida mortgage facility to employed and self-employed customers, presenting a lifetime chance to own ready-to-move-in homes. As a bank, we believe in developing sustainable financing models for our customers, we are offering up to 90% financing within market rates, over a period of 25 years to service their loans.” says Mr. Mutua.
The proposition is one of the bank’s contributions towards the government's housing pillar under the Big 4 Agenda and aims to provide quality family homes with sociable amenities and green spaces that enhance quality of living spaces to potential homeowners.
“We have a team of dedicated experts that will walk the journey with customers using our financial and non-financial expertise to provide credible information, services and solutions throughout every step of acquiring their dream home.” adds Mr. Mutua.
Speaking during the signing ceremony, Mr. Antony Kambiriri, Chief Financial Officer Mi Vida, said, “We are delighted to partner with Absa Bank Kenya as it brings us closer to our goal of addressing the shortage of middle-income housing in Kenya. There is a huge demand for affordable and middle-income homes and through this partnership, we will bridge the gap in this market to exceed customers’ expectations.”
Mi Vida’s project at Garden City, is a first of its kind with the development centred on green space and family living. Phase 1 at Garden City offers 1. 2- and 3-Bedroom Apartments. Launched in 2019, under construction and on course to be complete by March of 2022.
Besides the Mi Vida proposition, Absa’s mortgage flexible offers different options towards home ownership such as financing land purchases and disbursing construction loans as well as home loans for self-employed individuals.
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About Absa Bank Kenya
Absa Bank Kenya PLC is listed on the Nairobi Securities Exchange and is one of Kenya’s leading financial institutions. Established in 1916, Absa, formerly Barclays, has been a major player in Kenya’s financial landscape, engaged in personal and corporate banking, enterprise, credit cards and bancassurance.
The bank offers end-to-end financial solutions to retail, enterprise and corporate customers while its regional and global footprint enables it to offer cutting-edge financial solutions to its clients. The bank is a leader in the credit card space and has also been associated with a number of market firsts such as the launch of the first ATM, Sharia-compliant banking and unsecured lending among others.
Absa Bank Kenya has presence in 38 counties with 86 branches, 212 ATMs and robust internet and mobile banking platforms. The bank’s purpose is to bring possibilities to life.