Have you identified the house you want and need a finance partner? Our La Riba Islamic mortgage solution is here for you.
It is a mode of financing that complies with the Islamic principles that prohibits interest; instead it is structured around shared ownership, profit -sharing and leasing arrangements.
Straight purchase
Intended for anyone who wants to buy a ready home.
- Up to 100% for property amounts below KES 10 million
- Rest, up to 90% up to 25 years
- Buy to let: 80% up to 20 years
- Available for property in Kenya only
Construction finance
Intended for anyone who wants to build a home.
- Get up to 100% of the construction costs if the plot is already owned. This is subject to the value of the land
- Up to 70%
- Up to 20 years
- 9-month moratorium during construction after which repayment starts
- Fixed-price contract for amount above KES10m
- Up to 12 months disbursement
Equity release
Intended for anyone who wants to top up on existing mortgage or use property that is unencumbered (not charged to any bank/no caveat on the property).
- Get up to 80%
- Up to 15 years
- Value of property needs to be more than KES2m (Nairobi) and KES1.5m (rural areas)
- Security charge over property is applicable
- Valuation fees are 0.25% of property value
Mortgage takeover
Refinancing mortgage loan from another financial institution.
- Get up to 90%
- Value of property must be more than KES2m (Nairobi) and KES1.5m (up country)
- Discharge and charge over property applicable as security
- Up to 25 years depending on retirement age
Affordable housing (KMRC)
Home loan is funded by KMRC for both straight purchase and construction of residential home with the following parameters:
- Profit rate is 9% for scheme check off and 9.5% fixed
- Term for 25 years
- Facility amount up to KES10.5 million cost of the property capped to a maximum of KES15 million
Mode of financing
- Buying a home: We finance up to 105% of the current market value or purchase price whichever is lower. Repayment period of up 25 years subject to confirmation of individual age, terms of employment and anticipated retirement age
- Building a home or ongoing constructions: Maximum loan amount: subject to affordability. Get up to 105% of the construction costs if plot is already owned. Repayment period of up to 20 years
- Buy off/Remortgage: If you have a mortgage with another financial institution which has been serviced less than 2 years with balance not exceeding KES10.5 million and term of up to 25 years
- Buy and build: Customer who has no land will contribute 20% of the cost of both land and construction costs. Repayment up to 20 years subject to retirement age
- Completion of house: Customers who took unsecured facility, bought land or started construction of their residential homes and got stuck can transfer the loans through the affordable housing and spread it up to 20 years. Maximum amount KES10.5 million and maximum cost of project KES15 million
Need more help?
Call us on:
+254 (20) 3900000 (Landline)
+254 (722) 130120 (Mobile)
+254 (732) 130120 (Mobile)
Email us:
absa.kenya@absa.africa
