The Co-operative Bank has created a Good Home Mortgage solution for the specific needs of Co-operative Societies and Unions. The main aim of the product is to assist those co-operatives that have an interest in either developing housing projects, or wish to support their members own a home.
Co-operatives remain the most effective vehicle for enabling majority of Kenyans to own a home. Most co-operatives have idle but prime land, but they lack adequate resources to invest in housing projects for their members. The Good Home Mortgage for Saccos offers the answer to this need.
The Good Home Mortgage for Saccos is designed to suit different needs of Saccos, which include;
- The Wholesale Mortgage which is for helping housing societies that are seeking to borrow funds to buy, or construct houses within a structured project or turnkey project. The Funds are given for the purpose of enabling the Sacco to on–lend to members.
- Partnership Mortgage where a Sacco wants to facilitate home ownership but not borrow on behalf of the members. The partnership involves the Sacco, Co-op bank, the professionals and Sacco members. This product is for the individual Sacco member who is the borrower.
- Acquisition product which targets Saccos wishing to acquire complete units for own use, for rental, for sale, for development or individual SACCO members wishing to buy complete units or land for owner-occupation.
- Agency product, where the SACCO has no capacity to enter into the above schemes but has members who want to make use of the Good Home Mortgage. The SACCO can then enter into an agreement with the bank for Agency.
The following are some of the basic requirements for a SACCO to obtain Co-op Bank's Good Home Mortgage:
- Duly signed application forms
- A copy of the title
- The un-expired term for leases must be at least 30 years at the time of redeeming the loan
- Identification documents
- A Valuation report
- Evidence of payment of ground rates and rent
- Evidence of borrowers deposit or contribution
- A mortgage protection cover
Some of the costs associated with the Good Home Mortgage include:
- Stamp Duty
- Valuation Fees
- Commitment fees
- Legal Fees for Conveyance Process
- Insurance Premiums
The Benefits that Saccos get from the Good Home Mortgage for Saccos include:
- Dedicated Relationship Management - Each Co-operative society will enjoy the services of a dedicated relationship manager who will ensure all their needs are addressed appropriately.
- Good Faith Estimate - This is a ddocument provided by the Co-operative Bank to the Sacco showing an estimate of all fees and costs associated with mortgage loans. This document fully informs customers on all the various steps and expected costs of a mortgage beforehand to ensure that Co-operative clients don't get any surprises as they service their mortgage.
- Competitive Interest Rates - Cooperative Societies have access to affordable houses due to negotiated competitive rates. They may choose to accelerate the repayments by increasing the monthly repayments. Lump sum payments also reduce loan balances and help save on interest costs.
- Project Certification - We ensure that that all the projects embarked on enjoy the services of highly qualified service providers to ensure good quality and timeliness of all the projects sanctioned by the Societies.
For more information, Contact us on 020 277 6000, 0729 277 600, 0736 690 101 or email
customerservice@co-opbank.co.ke
