The SACCO has in the past facilitated its members to buy land, build houses & buy ready houses. In line with the Agenda 4, the Sacco has revamped Makao Halisi product to make it attractive to the members through provision of affordable housing to its members. Kimisitu SACCO shall deepen further buying of land, construction and buying of homes for all its’ members.
Product Features:
- Must be a member of Kimisitu Sacco Ltd
- Must have contributed consistently for at least 6 Months.
- All borrowers must have attained the minimum Kes.30,000 requirements for share capital.
- Loan multiplier- X7 of deposits
- Interest rate: 12% p.a. Reducing Balance
- Top Up of Makao Halisi allowed for any of the sub-categories, at 2.5% one-off
- Mortgage Bank buy offs are also allowed
- Off plan shall ONLY be done through Sacco certified and credible partners. (Have partners who handle projects and accept payments after completion of the houses)
- Member buying rental houses with existing proven income, the income to be considered on appraisal.
- Provide 3 months moratorium with only interest payable to allow the member ample time to finish their house/building construction.
- N/B: This is applicable only to members undertaking construction.
Makao Subcategories
|
Product sub-type |
Financing Percentage |
Loan Limit |
Mortgage Tenure |
Interest Rate |
Eligible Customers |
|
Land Purchase |
100% |
30M |
60 Months |
12% p.a. Reducing Balance |
Kimisitu Sacco Members |
|
House Purchase - First Mortgage |
105% |
30M |
144 Months |
12% p.a. Reducing Balance |
Kimisitu Sacco Members |
|
Construction Loan |
105% |
30M |
144 Months |
12% p.a. Reducing Balance |
Kimisitu Sacco Members |
|
Commercial Housing |
100% |
30M |
180 Months |
12% p.a. Reducing Balance |
Kimisitu Sacco Members |
|
Incremental housing
|
105% |
30M |
144 Months |
12% p.a. Reducing Balance |
Kimisitu Sacco Members |
|
National Cooperative Housing Union (NACHU) Off Plan Personal Housing |
90% |
30M |
144 Months |
12% p.a. Reducing Balance |
Kimisitu Sacco Members |
N/B: **Bank Buy offs for mortgages will be facilitated at 100% based on above qualifications depending on the sub type of the loan being bought off as per above features.
** Incremental housing: This is where the construction is done in phases depending on ability to pay and stages. Member can be financed for the specific section of the house that is pending.
APPLICATION REQUIREMENTS
- Duly filled loan application form
- Current certified pay-slips/ 6 Months certified bank statements, Copy of ID
- Copy of signed sale agreement between the borrower and vendor to be submitted to the Sacco Most current copy of title deed.
- The borrower must have clear and proven source of repayment – already existing income streams that are sufficient to meet expected repayment.
- Security to be by way of first legal charge on the property being financed and/or another property by legal firm on the Sacco panel
- Loan secured by the plot 30% and house structure 70% (For construction mortgages)
- Property to be valued by a valuer on the Sacco’s panel
- Profile of the contractor.
- Approved architectural and structural drawings of the proposed project.
- Evidence of up to date land, rent & rates payment (i.e. receipts where applicable)
- Original Bills of Quantities prepared by a registered quantity Surveyor
- Project Implementation Schedule (Contractor’s work plan) detailing all activities and scheduled time frames.
- Building contract agreement between borrower and contractor.
COLLATERAL REQUIREMENTS
- Land & Building Security Matrix
|
LOCATION |
PERCENTAGE MATRIX |
|
Nairobi Metropolitan area |
80% of forced sale value |
|
Other County Headquarters and Towns with at least 2 banks. (It is known that presence of banks is indications of improved economic activities) |
75% of forced sale value |
** Applies for all mortgages.
- Process charges incurred during mortgage processing
- Valuation
- Legal fees on charging of title
- Project managers fees
- Property Insurance: – 100% of Mortgage Value
- Loan Insurance: – Value of mortgage
N/B: The Valuation, Legal fees (Consents, transfer and charge) and project management charges to be paid by the member. (Sacco can finance depending on the collateral and ability of member).