How different is the Good Home Mortgage from other offerings already in the market?
- We do upfront disclosure of all our processes and charges for your benefit.
- We combine both variable and fixed rolling mortgages, which gives you the benefit of choosing what interest regime is good for you. In short, we have a two-in-one mortgage facility.
- For co-operative society members (SACCOs), we offer support so that they can in turn lend to you as a society member.
- We have special products targeting the rural population who would like to develop affordable but decent homes. These include offering wholesale mortgages and technical support to housing co-operatives to lend to their members.
- We have redefined turnkey projects to also include individuals who team up and wish to construct houses under structured projects for owner occupation.
- We will avail a partnership mortgage with the co-operative societies to enable them easily mobilize their members and give them affordable housing.
- We offer term-based pricing which recognizes the time value of money and passes the benefit to our customers with very competitive rate
What are the attributes of a Good Home Mortgage?
The Good Home Mortgage has various features, tailored to suit individual needs and to make loan repayments more comfortable. These features are:
- Good Faith Estimate
- This is a document provided by The Co-operative Bank to Good Home Mortgage Customers, showing how an estimate that includes an itemized list of fees and costs associate with your mortgage loan. The Good Faith Estimate is, however, just an estimate.
- Good Faith Estimate
- Often, parents and their children wish to purchase properties together. The parent is nearing retirement and their children have started working. This option helps such customers combine their incomes and take a long-term home loan, wherein the installment reduces in amount upon the retirement of the earning parent.
- Project Certification
- The project approval facility provides customers the comfort of purchasing properties from builders who have complied with all basic documentation. We will issue prospective buyers with a Good Home Buyer’s Guide to enable proper evaluation of what is available.
- Accelerated Repayment Scheme
- The scheme offers the customer a great opportunity to repay the loan faster by increasing the monthly installments. Whenever you get an increment in your disposable income or have lump sum funds for loan repayments, you can benefit by saving on interest to be paid.
- Fixed and Variable Rates
- Our rates are quite flexible and competitive. We have both fixed and variable rates, which are dependent on the term of the mortgage. Rates range from from 19.25% to 20%p.a (All on reducing balance) for individuals who want to buy owner-occupied houses, whereas for organizations wishing to buy commercial properties for investment, the rates are flexible depending on the security and term of the facility. Co-operative society members will enjoy a discounted rate depending on the choice of product.
How does one qualify for a Good Home Mortgage?
Self-evaluation is the first step in getting a Good Home Mortgage. Evaluate your current and future needs, especially the kind of home you are looking for in relation to your projected future income. The Good Home Mortgage matches your needs to the product specification. Requirements are then drawn up based on various key factors like type of property to be acquired, the value, location, age of the borrower and income details, among others.
Good Home Mortgage Offering:
- A maximum of 95% of the mortgage value, hence you only need to have a minimum of 5% of the amount if your property is for owner occupation.
- We consider a maximum of 50% of your income as what can be applied to repay the facility.
- Costs associated with the process will amount to about 7% of the selling price.
- A clean title, free from encumbrances and where all land rates and rent are cleared.
- For Co-operative societies, requirements depend on the product chosen and the borrowing power limits.
- An account with Co-operative Bank to allow you easier access to the Good Home Mortgage.