Homeownership can be exciting, and it’s actually most people’s dream, given the convenience and security it comes with.
While the path to homeownership can often be challenging, particularly when it comes to financing, it is recently becoming easier than before due to the increasing mortgage facilities designed for various individuals.
In the recent past, Co-op Bank launched a mortgage facility to allow Kenyans to own homes using their retirement savings.
The product, which is the first such facility in the market is targeted at pension scheme members whose 40 percent of their pension benefits cannot cover the full cost of buying a house.
The Co-op Bank pension-backed mortgage is a gamechanger for members of pension schemes in Kenya, who otherwise would have found it difficult to raise enough funds to buy a home.
Co-op Bank account giving Kenyans cash advances and loans
The mortgage product was made possible by the government’s Retirement Benefits (Mortgage Loans) Act, Regulations Amendment 2020 that allows members of pension schemes to utilize up to 40 percent of their accrued pension benefits as down-payment to buy a home.
With this facility, a pension scheme member can purchase a developed property anywhere in Kenya with a ready title deed or certificate of the lease, provided that the house is a residential property for the member’s own occupation.
The application can be done by an individual pension scheme member or jointly with a spouse thereby consolidating their pension benefits to access a higher amount.
The mortgage product features an extended repayment period of up to 20 years, subject to the retirement age of the borrower.
For more information about this mortgage facility, visit the nearest Co-op Bank branch or contact the lender via 020-2776000, or 0703027000.
