MORTGAGE

MORTGAGE FINANCING

The Bank shall grant mortgage loans in accordance to the Mortgage financing regulations, 2015 for the purpose of acquiring, improving or constructing a residential property and the loan shall be secured by the underlying property, primarily. Minimum loan amount is TZS 50Mil. and maximum amount is TZS 500Mil.The loan amount shall not exceed 90% of the forced sale value of the financed property as determined by a registered or of the purchase price from a reputable property developer.

The Bank may finance up to 100% provided that the borrower is able to provide additional collateral in the form of property, fixed deposit, near cash items whose total value shall be at least 10% of the property value.

The maximum loan repayment period shall be twenty (20) years

The properties that shall qualify to be financed under mortgage shall be those within Mainland Tanzania only.

The property being financed by the Bank constitutes a primary security for the loan. However, an alternative or additional property as security may be acceptable subject to suitability in quality and sufficiency in value to cover the exposure as per provisions of this policy;

To qualify for a mortgage loan for construction, the borrower must be able to finance at least 10% of the total project costs. After completion of construction, the property financed by the Bank should cover the loan by at least 125% based on the forced sale value.