NON-FUNDED SPECIAL MORTGAGE SCHEME; UNSACCO
A presentation by; Housing finance
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HOUSING FINANCE COMPANY LIMITED
Housing Finance was established in 1965; is 43 years old It is a public quoted company Current Shareholding: NSSF 7.87% Govt 7.32% **CDC to Equity Bank Group 24.9% Public 59.91%
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OBJECTIVE OF PRESENTATION
UNDERSTAND THE SCHEME EDUCATE & INFORM ON THE HOUSE BUYING PROCESS ELABORATE ON CONSTRUCTION PRODUCT
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What is a special mortgage scheme facility
Mortgage Facility offered to staff upon arrangement between the two organizations with the following features; Benefit extended to staff by employer Rates are negotiated
Enjoying a lower interest of 12. 5% per annum
Lending to a maximum of 95% of OMV / selling price – whichever is lower depending on ability to pay Period is pre-determined – Max. 20 yrs Credit appraisal will be done by HF System of repayment is on monthly equal installment through check off by employer
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BENEFITS:
EMPLOYEE
Lower
interest rate Better housing Tax rebates Professional Advice Easy access to property market information by HF through PROPERTY POINT
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Before committing to a mortgage
Decide and agree on the monthly repayment you are comfortable with after taking into consideration all your monthly living expenses (including other debts and future financial commitments). Determine the best use of your property which should be within expectations. Confirm how much of your own savings you are willing to commit towards your house buying project. Confirm maximum eligibility from HF – pre-appraisal
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While in the process of getting a house (mortgage)
DON’T Do not exceed your realistic budget – a mortgage is a long-term commitment Do not go for deals that ‘are too good to be true.’ Do not overlook any wording on any document that binds you-(sale Agreement, offer letter) Remember its an investment
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What do you need to do?
Look for a property that is within your budget and negotiate the price. Obtain a Letter of Entitlement /introduction from your employer
Complete a Housing Finance Loan Application Form
Produce copy of your Kenyan I/D (National I/D card and/or passport)
Complete a Net Disposable Income appraisal form Complete a Life Insurance Proposal form Submit three months pay slips and six months bank statements and other necessary requirements
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Documents
Identification Bank statements Pay slips Introduction letter Copy of title Sale agreement Marriage certificate Photos
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Housing Finance will do the following
Give an offer letter ensuring that 20% of the net income to be retained as net after loan repayment and living expenses. Ensuring that title has an un-expired lease term of 45 years A legal charge against the title deed of property being purchased is in place. The property is within municipal boundaries or peri-urban areas. Commission external valuers for a valuation inspection Appoint reliable external advocates to handle the conveyancing process Advise on loan repayments
Maintain relationship with borrower for the term of the loan
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Process Flow.......
APPLICATION AND OFFER LETTER -3 DAYS (Repayment schedule is also given) VALUATION- 4 WORKING DAYS SIGNING AND RETURN OF OFFER LETTER –MAX 21 DAYS TRANSFER AND CHARGE -45-60DAYS DISBURSEMENT -2 DAYS
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What Additional Costs Are To Be Expected?
Valuation fees Initial Mortgage Repayment Annual fire insurance premium (subject to valuation) Annual life insurance premium (subject to age and medical status) Annual ledger fees – KES. 3,000 Legal fees and disbursements payable to the advocates directly
Stamp duty – 4% on selling price
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Types of Loans At Housing Finance
Owner occupier mortgage Plot loans (5 yr term) Buy & Build loan Equity release loans/Top-up Construction facility *Own House Construction *Makao Solutions
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What To Consider For A Plot /Construction Loan
Ensure land is legally acquired to avoid potential loss Think about location in relation to your lifestyle Look at the development plans for the area Zoning regulations by the council or local authority
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When constructing on your own
Get a project team in place Give 6-8 months as construction period Get a contractor with funds-payment in stages and arrears Funds to meet interest cost
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THE PROJECT TEAM WILL COMPRISE;
ARCHITECT –ARCHITECTURAL DRAWINGS, A PROJECT SUPERVISOR QUANTITY SURVEYOR – COSTING OF THE PROJECT-BILLS OF QUANTITIES CONTRACTOR & SERVICE ENGINEER – UNDERTAKING THE ACTUAL CONSTRUCTION SUPPLIERS – PROVISION OF THE NECESSARY MATERIALS FINANCIAL INST. – PROVISION OF FINANCING
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REQUIREMENTS FOR CONSTRUCTION
APPROVED BUILDING PLANS COPY OF THE TITLE SEARCH CERTIFICATE REGISTRY INDEX MAP ROUTE MAP TO THE PROPERTY SELF-DRAWN A QUALIFIED PROJECT MANAGER CERTIFIED BILL OF QUANTITIES CONTRACTS CONFIRMING APPOINMENT OF THE TEAM- SERVICE PROVIDERS EVIDENCE OF THE BORROWERS EQUITY (FUNDING SHORTFALL)
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MAKAO BUILDING SOLUTIONS:
THE CONSORTIUM WILL PROVIDE:
BUILDING
PLANS CONTRACTOR ENGINEERS AND QS LAWYERS NECESSARY APPROVALS PROJECT MANAGEMENT UNTIL CONSTRUCTION IS COMPLETE
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CAUTION ON OWN HOUSE CONSTRUCTION:
AVOID LABOUR CONTRACT AVOID DESIGN VARIATIONS WORK WITH TESTED PROFESSIONALS LET YOUR TEAM OF PROFESSIONALS WORK FOR YOU
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PROPERTY POINT’
The Property Point is a fully established property mart housed within Housing Finance and located on the ground floor at Rehani House. It is open from 8.00 a.m. to 5.00 p.m. daily The Property Point is a one-stop point for property developers, estate agents, suppliers of housing and construction materials and customers designed to make the process of property acquisition easier. This concept is a first in the East African region. Access it on www.propertypoint.co.ke OR www.housing.co.ke
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HOUSING FINANCE Turning Dreams Into Homes
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