Makao Frequently
Asked Questions
1. Is
the 1% inspection fee we will charge the customer before the site visit
refundable?
No.
The inspection fees are not refundable as they are used to defray costs
associated with the initial inspection. The fees are paid upfront before the
first site visit to ensure that HF spends its resources on serious takers.
2. Does
the 1% inspection fee cater for site visits that will be done for duration of
the construction?
The
1% inspection fees should be able to cater for the rest if the site visits
depending on the size of the project.
3. Is
the customer allowed to alter the Makao designs?
One
of the challenges experienced in the previous Makao was the alteration of house
designs without the prior knowledge of HF. The customers will be allowed to
make alterations within limits in consultation with the HF & the Consortium
after the site visit. However, after the customer has done the final sign-off
and the project has been commissioned, no alterations will be allowed until the
project is over. In exceptional cases and on a case-by-case basis the customer
will be allowed to alter the designs on condition that all parties are aware,
the customer deposits in an account the full amount that will cater for the
extra expenses incurred as a result of alterations and that construction stops
on site until all conditions resulting from the alterations are met
4. Are
the customers going to know the kind of finishes to expect of their homes?
There
are 3 types of finishes found in the catalogue and the customers will be able
to select the type of finish they would like.
5. What
happens if we prequalify someone and then after appraisal, we establish that
they do not qualify for the amount they have applied for?
The
customer will have to advised accordingly and the process will have start again
to establish a house type that is within the amount they qualify for.
6. Will
the buy-plot-build be applicable for Makao?
One
of the key assumptions for Makao is that the customer already has land with a
clean title deed. In a situation where the customer wants a buy-plot-build
under Makao, it is advisable that they start by purchasing a plot first and
then taking up Makao later.
7. What
terms will be applied to customers under existing scheme?
The
existing scheme rules will apply. However, the 1% inspection fees will still be
applicable as well as the 1% of the commitment fee which is used during the
construction period.
8. What
will be the price range for the various house types?
The
current price ranges from Kshs 1.6 million to Kshs 27 million.
9. Can
we allow a customer to come with their own designs and use one of the
consortium to implement the project on their behalf?
No.
The customer will be advised to take up a construction loan.
Other Questions on Makao
10. At
what point will the current account and Makao savings account be opened?
The
accounts will be opened before the site visit to facilitate the depositing of
the inspection fees and the regular savings.
11. Will
Makao be done on labour-based or fixed contract?
In
the reviewed Makao, HF will deal with the consortia and not the contractor as
was the case previously. Therefore whether the project will be done through
fixed contract or labour based is up to the consortia to decide.
12. How
are the current account and the Makao savings account related?
The
current account will be instrumental in facilitating the customer’s regular
transactions. The customer will be required to do regular internal transfers
from their current accounts to the Makao savings account.
13. How
does the 100% financing under Makao relate to other products such Ezesha’s 105%
or Home Freedom’s 115%?
Depending
on the customer’s qualification and ability to pay, the customer can opt for
any of the other products such as Ezesha and Home Freedom. This will offer the
customer opportunities to cater for any other costs associated with their home
such as furnishing the house.
14. How
can we ensure that the customer deposits a minimum of Kes 500 in the Makao
account?
The
customer can set up a free standing order to their Makao saving account. The
Makao savings account will also serve as a motivation for those customers who
do not qualify for Makao immediately but are keen on the product in the future.
15. Will
the Makao savings account be used for the drawdowns?
The
Makao savings account allows for only quarterly withdrawals and hence it is not
ideal for drawdowns.
16. What
if the customer is already a Crossover account holder, will (s)he have to open
a Makao account?
No.
It will not be necessary for the customer to open a Makao savings account.
17. Why
should a customer open both a Current account and Makao savings account?
The
reviewed Makao product has a deposit mobilization objective and therefore it is
important that the customer opens both accounts for transactional capabilities
and for savings.
18. Does
the customer have to complete two (2) account opening forms to open both the
Current and Makao savings accounts?
The
same account opening form can be used to open both accounts.
19. Will
the subsequent incremental house designs be done by the same consortium that
designed them?
Yes.
The consortium that designed the house type will be best placed to execute the
incremental house design.
20. Will
the Project Administration team at HF be able to handle the volumes once the
product uptake increases?
The
capacity in project administration is being enhanced and there are plans to
increase their mobility so that they are able to visit several sites in a day.
21. Can
a customer finance part of the construction through cash and part through HF
financing?
Yes,
this is possible.
22. What
will the terms be like for a customer who opts to secure the facility through
cash cover?
The
existing cash cover policy applies. Currently, HF puts a margin of 5% above the
interest rate we are offering the customer.
23. Can
HF be able to settle the statutory costs on behalf the customer?
It
is possible to build in this into a facility especially if the customer has the
ability to qualify for Ezesha or Home Freedom which finance more than 100% of
the construction cost.
24. What
happens if competition buys out the mortgage facility after HF has completed
the building through Makao?
We
will strive to maintain the customers within our books through good
relationship management and offering competitive interest rates
25. Will
there be a Good Payer’s Discount for Makao?
Yes
it will once the construction loan is converted to a long-term loan.
26. For
cash Makao, why can’t we charge a one-off fee of 11% instead of separating the
inspection fees (1%) and project administration fees (10%)?
We
cannot charge one fee because the fees serve different purposes and have to be
paid at different times in the process. The inspection fees is required before
the first site visit and once we established the correct house type for the
customer and we are ready to implement, the customer will be required to pay
the project administration fees.
27. Are
we going to offer mortgage facilities in foreign currency especially for
Kenyans in the Diaspora?
This
is possible since we offer foreign currency denominated loans. However, it is
important to note that the foreign currency conversion rate will be based on
the prevailing market rates.
28. Are
we able to state the prices for the house types in the catalogue in foreign
currency?
The
estimated pricing for the house types is in Kenya shillings since most of the
transactions concerning the project will be in Kenya shillings. The pricing can
be stated in Kenya shillings but the customer needs to be made aware of
currency fluctuations that may affect the final pricing.
29. How
regularly will the house designs be reviewed?
This
shall be done annually
30. Will
we charge interest for funds disbursed during the construction period?
Yes.
31. Will
the customer be required to raise other professional fees in Makao?
The
price estimates found in the catalogue include the professional fees and this
is a good selling proposition in that the customer should not expect to raise
any other funds once we settle on the cost of the project.
32. What
happens if the area the customer wants to build the home is controlled
development?
This
and other details about the site shall be established during the site visit and
the customer will be advised accordingly.
33. Under
Makao, will there be restrictions on lending to customer to put up building
outside a municipality?
The
existing policy will apply.
34. Can
a customer offer an alternative security to secure the construction of a Makao
project?
Yes.
The customer can be advised to take our equity release product dubbed Vuna hela
and use the funds for Makao.
35. Can
Makao cater for stalled projects?
No.
The most ideal solution for the customer in this case is our construction loan.
36. Are
the usual insurances going to be applicable for Makao?
Yes
they will.
37. In
case a prequalified customer has a encounters a situation where their loan is
declined, can we lend for the amount (s)he qualifies for?
Yes
we can but the customer will be required to raise the difference and deposit it
in the current account.
38. What
happens if the customer is not happy with their Makao home?
The
reason for this will need to be established to come up with a reasonable
solution. However, we shall strive avoid such situations through proper
relationship management
39. Can
a customer take Makao for residential investment purposes?
Yes.
Some of the house types include apartments which are ideal for residential
investment.
40. How
will we allocate the various projects among the consortia?
It
will be competitive. The consortium whose designs are popular with the
customers will stand to gain.
41. Which
fees will be applicable when a customer takes a hybrid of Cash Makao and Makao
loan?
The
fees for cash Makao are applicable for customers who are funding the entire
project by cash. The Makao loan terms and conditions will be applicable for any
person who does a combination of both.