Affordable Mortgages in Kenya

Affordable Mortgages in Kenya: How to Own a Home with Ease

Introduction

Affordable Mortgages in Kenya | Owning a home in Kenya is a dream for many, but high property prices make it difficult to buy a house without financial assistance. Fortunately, mortgages provide an opportunity to buy a home and pay for it in monthly installments over time.

This guide will explore affordable mortgage options in Kenya, the best mortgage lenders, interest rates, eligibility requirements, and how to apply.

Affordable Mortgages in Kenya

What is a Mortgage?

A mortgage is a loan given by a bank or financial institution to help you buy a home. Instead of paying the full price upfront, you repay the loan in monthly installments, including interest, over a period of up to 25 years.

Types of Mortgages in Kenya

Fixed-Rate Mortgage – Interest remains the same for a set period.
Variable-Rate Mortgage – Interest fluctuates based on market conditions.
100% Mortgage – Covers the full cost of the house without requiring a deposit.
Affordable Housing Mortgage – Special loans for low-income earners under government programs.

Best Affordable Mortgage Providers in Kenya

1. Kenya Mortgage Refinance Company (KMRC) – Affordable Housing Mortgage

Loan Amount: Up to Ksh 8 million (Nairobi) & Ksh 6 million (Other towns)
Interest Rate: 9% fixed (lower than commercial banks)
Repayment Term: Up to 25 years
Deposit Required: 10% of the house price
Eligibility: Low- and middle-income earners earning up to Ksh 150,000/month
Special Features:
Lowest mortgage rates in Kenya
Long repayment period
For first-time homebuyers

Apply here: Kenya Mortgage Refinance Company (KMRC)

2. KCB Bank Home Loans

Loan Amount: Based on income and house value
Interest Rate: From 9.5% per annum
Repayment Term: Up to 25 years
Deposit Required: 10-20% of house price
Eligibility: Employed and self-employed individuals
Special Features:
Custom financing for different income levels
Available for buying, building, or renovating homes

Apply here: KCB Mortgage

3. Co-operative Bank Mortgage Loan

Loan Amount: Up to 90% of the house price
Interest Rate: From 10.5% per annum
Repayment Term: Up to 20 years
Deposit Required: 10-20% of house price
Eligibility: Salaried and self-employed individuals
Special Features:
Affordable financing for low-income earners
Quick approval process

Apply here: Co-op Bank Mortgage

4. NCBA Mortgage Loans

Loan Amount: Based on income and house value
Interest Rate: From 9.5% per annum
Repayment Term: Up to 25 years
Deposit Required: 10-20% of house price
Eligibility: Salaried and business owners
Special Features:
Flexible repayment options
Available for both residential and investment properties

Apply here: NCBA Mortgage

5. Stanbic Bank Mortgage Loan

Loan Amount: Up to Ksh 100 million
Interest Rate: Market-based rates
Repayment Term: Up to 25 years
Deposit Required: 10-20% of the house price
Eligibility: Salaried and self-employed individuals
Special Features:
Fast loan processing
Available for local and diaspora buyers

Apply here: Stanbic Mortgage

6. HF Group Home Loans (Housing Finance Kenya)

Loan Amount: Up to 90% of property value
Interest Rate: From 10.5% per annum
Repayment Term: Up to 20 years
Deposit Required: 10-30% of house price
Eligibility: Salaried and self-employed individuals
Special Features:
Flexible home financing solutions
Affordable mortgage for first-time home buyers

Apply here: HF Group Mortgage

How to Qualify for a Mortgage in Kenya

To be eligible for a mortgage loan, you must meet the following requirements:

Kenyan citizen
Minimum Income Requirement: At least Ksh 50,000 per month for affordable loans
Stable Employment: At least 6 months of steady income
Good Credit Score: Improves approval chances
Deposit: Most banks require 10-20% down payment
Collateral: The house serves as collateral

Tip: Use a mortgage calculator to estimate your monthly payments.

Try this calculator: KCB Mortgage Calculator

Steps to Apply for a Mortgage in Kenya

Step 1: Find a House

Look for an affordable house that fits your budget.

Step 2: Choose a Mortgage Provider

Compare interest rates, loan terms, and special features.

Step 3: Get Pre-Approval

Most banks offer pre-approval, which shows how much you qualify for.

Pre-qualify here: Stanbic Mortgage Pre-Approval

Step 4: Submit Mortgage Application

Provide:
Completed loan application form
National ID or Passport
Proof of Income (Payslips, Bank Statements, or Tax Returns)
Property Sale Agreement

Step 5: Loan Processing & Property Valuation

The bank assesses the property value before approving the loan.

Step 6: Loan Approval & Signing Agreement

Once approved, sign the mortgage contract and pay your deposit.

Step 7: Move into Your New Home

The bank pays the seller, and you start monthly repayments.

Tips for Getting an Affordable Mortgage in Kenya

Improve Your Credit Score – Pay debts on time.
Save for a Bigger Deposit – A higher deposit (20%+) reduces your mortgage cost.
Compare Interest Rates – Shop for the best deal.
Understand Additional Costs – Factor in legal fees, insurance, and taxes.

Frequently Asked Questions (FAQs)

1. Can I get a mortgage loan in Kenya without a deposit?

No, most lenders require 10-20% down payment.

2. What is the minimum salary to qualify for a mortgage in Kenya?

Most banks require at least Ksh 50,000 per month, but KMRC mortgages are available for those earning up to Ksh 150,000 per month.

3. What is the best mortgage interest rate in Kenya?

KMRC offers the lowest fixed mortgage rate at 9%, while commercial banks start from 9.5% to 10.5%.

4. How long does mortgage approval take?

Approval takes 4-8 weeks, depending on the bank.

Final Thoughts

Affordable mortgages in Kenya make homeownership possible for many. If you’re looking for low-interest home loans, consider KMRC, KCB, Co-op Bank, or NCBA.

Ready to apply? Start here:
KMRC | KCB Bank | Co-op Bank

Affordable Mortgages in Kenya