This archive report was first published on 5 October 2019.
As I approach my 35th birthday, I've come to realize that my long-held assumption about mortgages is nothing short of foolish. I've always believed that owning a home in Nairobi would require a hefty down payment, followed by years of regular Sacco and bank loan repayments. But the more I learn about mortgages, the more I'm convinced that they're not just for the employed or those with a certain minimum income level.
According to the wise words of an unknown author, 'What we don't understand, we fear. What we fear, we judge as evil and attack.' I've been guilty of this very same behavior when it comes to mortgages. But as I delve deeper into the world of home loans, I'm beginning to see the opportunities and flexibility that they offer.
As a married couple with a young daughter, my husband GB and I have been considering our options for owning a home in Nairobi. We've always thought that we'd need to partly pay for it in cash, then top up the difference with a regular Sacco and bank loan. But now, I'm starting to think that this plan is flimsy at best.
Over the next couple of weeks, I'll be sharing the ABCs of mortgages in Kenya, speaking to Kenyans who service mortgages and financial institutions that extend this service. I'll be demystifying the process, explaining how mortgages are structured, and what the monthly repayments look like. And by the end of it, I hope to have tamed my fear of mortgages and see them as a loyal house pet, a life partner that can help us achieve our dreams of owning a home in Nairobi.
Published on October 5, 2019 by Bett Kinyatti, a certified accountant with ACCA and a former financial auditor.
