Housing Finance and EADB to co-finance housing projects

Housing Finance has signed an agreement with East African Development Bank (EADB) to jointly co-finance large scale projects.
Mr. Ireri said the firm will continue to seek partnership arrangements and opportunities with financial institutions as part of its mandate to mobilize additional resources for housing development.

“We have adopted the strategy of co-financing projects so as to raise the finance necessary to undertake sizeable commercial and housing projects,” Mr. Ireri said. 
He said the highly successful Bond issue that raised Kshs 7 billion has increased Housing Finance participation and capacity in mortgage lending and housing supply. 
The company, he adds, is appraising various large scale housing projects that have capital investment requirements of up to Kshs 1.5 billion.

“Gaining access to alternative sources of funding at competitive rates signals a new dawn in Housing Finance ability to attract and access long term financing,” said Mr. Ireri
EADB Director General, Ms. Vivienne Apopo said the firms will also collaborate in the area of research and in the mobilization of financial resources including the mobilization of domestic financial resources to support projects.
“East African Development Bank has adequate resources to support financing of housing in an integrated approach. We welcome initiatives to explore new financial options, including co-financing,” said Ms. Apopo.
Ms. Apopo said the bank will spearhead the establishment of a regional institution with adequate capacity to promote housing development.

“The institution would be dedicated to promoting the development of housing and housing finance in East Africa,” said Ms. Apopo.
Housing Finance, Property Finance activities span across a range of property types including residential, office space, retail shopping centers, industrial usage, hospitality and educational use.
Under a fully fledged Project Finance department comprising a mix of technical, financial and market knowledge capability, Housing Finance is spearheading concept origination, financial and technical structuring and financing of property acquisition, development and improvement across wide sectors of residential, commercial and industrial use.

Housing Finance has successfully positioned itself as the main player in the property value chain under an ambitious Property Supply Strategy.
The mortgage firm in 2010 signed a co-financing agreement with Shelter-Afrique, a regional housing finance and development institution involved in financing housing and related infrastructure development in Africa.

EABD is a regional premier development financing institution whose main objective is to provide financial assistance to promote socio-economic development of the Member States of Uganda, Kenya and Tanzania.
The Bank offers a mix of financial products and services to viable projects in the Member States. EADB mobilises local resources by issuing bonds. In cases where clients’ requirements go beyond EADB’s financing limits, the Bank can offer syndication and co-financing arrangements.

When is the best time to start planning for a mortgage?

The journey to property ownerships begins with putting funds aside as savings to achieve your long term goal of home ownership. This can be achieved by opening a 1st HOP Account, a Crossover Savings Account or through purchase of a Housing Development Bond. It is advisable to begin saving early for home purchase since mortgage is a long term commitment that requires self-discipline.

The 1st Hop account is an excellent starting point for young people who want to develop the savings discipline. It enables you to save up to Sh.4,000 per month tax free. Also, interest on the account for amounts below Sh.3,000,000 does not attract tax. The account’s key advantage is that it builds deposits and its benefits accrue when you invest in a housing project.

The Crossover Savings Account offers you very attractive features that enable you to save for long term projects such as home ownership or any other dreams you have.  These features include: earning high interest on the account deposits as well as loyalty points on every deposit, access to 100 per cent mortgage financing, up to 25 per cent discount on commitment fees, up to 2 per cent discount on mortgage interest when applying for a mortgage loan and much more.

The Housing Development Bond (HDB) on the other hand equally suits those who want to set aside money for putting up a home. The HDB requires a minimum of Sh.50,000 and offers a saving of 5 per cent on withholding tax. HDB gives you the flexibility of savings and withdrawal in case there is an urgent need for the money.

As your income grows, it is wise to put more money aside. The challenge with most of us is the culture of first spending then saving what remains.

Housing Finance receives accolade for Best Bond issue

Housing Finance, the leading mortgage firm in Kenya, has gained industry recognition for Best bond issue in the Capital Markets Awards.

The Capital Markets Awards recognize the best quoted companies in Kenya and aims at encouraging prudence and stability in the financial services sector by recognizing, awarding, and celebrating exemplary performers and successes of the sector, therefore encouraging competition.

Housing Finance highly successful Bond issue in September 2010 raised Kshs 7 billion against a target of Kshs 5 billion representing a 41 percent oversubscription. 

The bond, a first by a mortgage firm, will increase Housing Finance participation in mortgage lending and housing supply.  Housing Finance is a capital intensive undertaking which is best financed through long-term credit financing.

For over forty-five years, Housing Finance has been providing access to mortgage finance to Kenyans for the acquisition, development and improvement of property and has helped many Kenyans turn their dreams into homes all over the country by constantly developing innovative and pioneering products and services designed to meet the unique needs of the Kenyan Market.

The team is continually involved in research and gathering of market intelligence which is a key component of developing suitable products for the Kenyan public.

Kenya’s informal sector landscape is riddled with single or multiple dwelling units which have stalled or delayed due to non-viable financial solutions. Some entrepreneurs are known to opt for a variety of financing solutions that have proven too costly in terms of financing costs. Housing Finance has developed a specialized service to cater for both small and large property developers. 

Housing Finance whose 45-year expertise has seen the realization of large housing units such as the iconic Buru Buru and Komarock estates to smaller single units has assembled an in-house team with requisite experience to support both aspiring and established property developers.

Housing Finance’s, Project Finance unit, handles Property development activities of the firm targeting property types including: Residential market, Retail market, Office Market and Industrial market.

Housing Finance winning business model not only focuses on providing mortgages and enabling more Kenyans to own homes, but also ensures that the Company plays a pivotal role in enabling a steady supply of quality and affordable property and homes in this market.