My dream house! This is a phrase that has crossed everyone at one point or another. It is an ambition that every Kenyan aspires to; to be a homeowner; to own a home that you can call yours, built and designed according to your taste and comfort.

Unfortunately, this is one of those dreams that for many, never comes true. For a long time, lack of money has denied many people the privilege of owning homes, forcing them to depend on rentals, which can sometimes be difficult to manage without a solid source of income.

In a bid to solve this challenge and to ensure customers live in houses that match their taste, various financial institutions have come up with mortgage plans to allow customers to purchase or construct houses without financial worries.

One such institution is the Co-operative Bank of Kenya. The Co-op Bank has developed various home ownership plans that can assist any Kenyan who dreams of owning a home realize their dream regardless of the type of salary they earn.

In fact, the Co-op Bank has a home-ownership program that is designed for Kenyans who don’t make much, especially the category of people who make less than Sh. 150,000 per month, defying the old trend where many Kenyans were locked out of the mortgage market due to their low income levels.

What’s more, the mortgage plan is 3 percent points cheaper than the average mortgage rate of 12.9 percent estimated by the Central Bank of Kenya.

Co-operative Bank announces Sh. 13 billion half year net profit

To be eligible for this plan, aspiring customers must have a maximum household gross income of Sh150,000 and at least six months of consistent banking with Co-op Bank.

The lender allows aspiring homeowners to either purchase a ready residential house or buy a plot and construct.

The purchased or constructed property is used as the security for the loan, with the loan’s interest rate capped at 9.9 percent per annum on reducing the balance.

The loan is open to both employed and self-employed individuals. The maximum loan tenure for employed applicants is 15 years and 10 years for self-employed individuals.

For properties around the Nairobi Metropolitan area, the bank provides loans of between Sh. 500,000 and 6 million and loans of up to 5 million for properties outside Nairobi.

If you are weighing your options and wondering whether a mortgage as a middle-income earner is viable, you can give it a try.

You can also contact Co-op Bank at your nearest, and you will be guided on how to make a successful application.