Consumer Banking
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FAQs
MORTGAGE
Will the interest rate change in the course of the loan? - No. If you opt for the part fixed rate then the rate does not change over the period you choose to fix it for (up to 5years). Yes .If you opt for the variable rate then the rate will change if the banks base rate changes.
Can I make lump some payments into my loan account? - Yes, you can. Kindly issue us with instructions on how you would like
Why can’t I use my own lawyer? - Your lawyer protects your interest in the transaction, while the bank’s lawyer prepares the charge document and protects the bank’s interest.
Why can’t I use my own valuer? - The valuer acts on the bank’s instruction and prepares the report as per the information required by the bank.
Can two people own a property together? - Yes either as joint tenants or as tenants in common. This is available to spouses only. Joint tenants’ means that the co owners have a joint share in the whole property. In case of death, the property reverts to the surviving co-owner. A tenant in common means that each co-owner has a distinct share in the property. The share of the deceased co-owner does not revert to the surviving co-owner but to his /her estate.
Can I borrow with my son/daughter? - No. Currently our product offering allows only for spouses borrowing jointly. This is because our product offering is a home loan and our customers are expected to reside in the house
What is a mortgage? - It is a loan advanced to the customer by the bank and the customer offers bank with his/her residential property as a security.
What would disqualify a customer who has applied for a home loan? -
Describe the difference between a part fixed interest rate and a variable rate - Part fixed interest rate is where the interest rate remains constant for a set period of up to five years. At the expiry of this period the customer can chose to fix it for another period at the applicable rates at that point in time. A variable interest rate is where the interest fluctuates during the tenure of the loan as determined by the bank.
What are the bank charges to the customer when taking the personal home loan? - Bank’s arrangement fees: This is to meet the bank’s costs for processing the loan. It is 1% of the loan amount.
Describe the up front charges that accrue to the customer when taking the personal home loan? - Valuation fees: This is paid to the valuers for the valuation of the property. It is based on the value of the property.
What would my life insurance be for a loan of Kes 3 million for ten years? - Shs 3,000,000 times 0.00549 (current rate) =Shs 16,470 for the first year.
If I have a life insurance with another reputable insurance company do I have to use your insurer (Pan African)? - Yes. The insurance cover with Pan African insurance is a group mortgage protection cover and is a very competitive cover.
If I loose my job and am not able to service my loan, will you auction my house? How long will you take before you auction my house? - In the event that you are having difficulty in paying your loan, please come and discuss with us. There will also be a legal process to be followed before we can auction your house. This is normally the last action resorted to after exploring all avenues.
For more information, call 3293000 or visit a branch near you.
Will the interest rate change in the course of the loan? - No. If you opt for the part fixed rate then the rate does not change over the period you choose to fix it for (up to 5years). Yes .If you opt for the variable rate then the rate will change if the banks base rate changes.
Can I make lump some payments into my loan account? - Yes, you can. Kindly issue us with instructions on how you would like
Why can’t I use my own lawyer? - Your lawyer protects your interest in the transaction, while the bank’s lawyer prepares the charge document and protects the bank’s interest.
Why can’t I use my own valuer? - The valuer acts on the bank’s instruction and prepares the report as per the information required by the bank.
Can two people own a property together? - Yes either as joint tenants or as tenants in common. This is available to spouses only. Joint tenants’ means that the co owners have a joint share in the whole property. In case of death, the property reverts to the surviving co-owner. A tenant in common means that each co-owner has a distinct share in the property. The share of the deceased co-owner does not revert to the surviving co-owner but to his /her estate.
Can I borrow with my son/daughter? - No. Currently our product offering allows only for spouses borrowing jointly. This is because our product offering is a home loan and our customers are expected to reside in the house
What is a mortgage? - It is a loan advanced to the customer by the bank and the customer offers bank with his/her residential property as a security.
What would disqualify a customer who has applied for a home loan? -
- If he does not meet the banks minimum requirements
- If the property being offered as security is not acceptable to the bank.
Describe the difference between a part fixed interest rate and a variable rate - Part fixed interest rate is where the interest rate remains constant for a set period of up to five years. At the expiry of this period the customer can chose to fix it for another period at the applicable rates at that point in time. A variable interest rate is where the interest fluctuates during the tenure of the loan as determined by the bank.
What are the bank charges to the customer when taking the personal home loan? - Bank’s arrangement fees: This is to meet the bank’s costs for processing the loan. It is 1% of the loan amount.
Describe the up front charges that accrue to the customer when taking the personal home loan? - Valuation fees: This is paid to the valuers for the valuation of the property. It is based on the value of the property.
- Legal Fees: This is paid to the advocates for the preparation and registration of the security documents for the loan. It is based on the loan amount.
- Stamp Duty: This is paid to the commissioner of lands for the registration of the transfer on the ownership of title documents on the property. It is based on the price of the property or the value of the property as determined by the government.
- Fire insurance premium: This is an annual premium paid to the insurer to cover the property against fire. It is paid for the entire duration of the loan.
- Life insurance premium: This is an annual premium paid to the insurer to cover the customer in the event of death or permanent disability .It is paid for the entire duration of the loan on a reducing balance principle.
What would my life insurance be for a loan of Kes 3 million for ten years? - Shs 3,000,000 times 0.00549 (current rate) =Shs 16,470 for the first year.
If I have a life insurance with another reputable insurance company do I have to use your insurer (Pan African)? - Yes. The insurance cover with Pan African insurance is a group mortgage protection cover and is a very competitive cover.
If I loose my job and am not able to service my loan, will you auction my house? How long will you take before you auction my house? - In the event that you are having difficulty in paying your loan, please come and discuss with us. There will also be a legal process to be followed before we can auction your house. This is normally the last action resorted to after exploring all avenues.
For more information, call 3293000 or visit a branch near you.
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