- Construction loans are disbursed in four phases, 25% of the loan at a time – subject to architect’s certificate and relationship manager report.
- Building plans must be approved.
- Bill of quantities (BQs) must be drawn by independent and qualified quantity surveyor.
- Construction site must be urban property intended for residential use.
- Both pre and post-construction evaluation fees are applicable.
- Stage valuations are done throughout the construction process.
- Up to 100% of the construction costs if a plot is already owned
- Up to 80% for buying and building – with a maximum 20-year payback period
- Fixed-price contract for amount above KES10m
- 9-month moratorium during construction after which repayment starts
- Interest paid only on the amount drawn
|Costs||Percentage of mortgage amount (aproximate)|
|Transfer stamp duty||4% of home value / 2% for upcountry|
|Stamp duty on charge||0.1%|
|Negotiation fees||1% to 2%|
|Home loan protection cover||0.3%|
|Valuation fees||0.25% of value of property|
There are also costs involved for on-site visits that are variable depending on the location of your property.
Insurance and protection costs are annual.
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