Mortgages made easy
Mortgages made easy
By Chantal Ben
Wanting to buy a house, but lacking money? The Tanzania Commercial Bank (TCB) is rolling out a mortgage scheme with a 10 per cent interest rate – in an African context, a real fair deal.
The extraordinary bank service, demanded for years, is the result of a partnership between Zanzibar housing developer CPS and TCB. It works for everybody, diaspora members, foreigners and locals, although it was initially prepared especially for the needs of Zanzibari living in the diaspora abroad, trying to invest in property here. Many have criticised that they could not secure a local mortgage.
Mortgage is a loan provided by a bank enabling clients to purchase a home while repaying over an agreed period. It’s a common way to buy property abroad; in Africa “moon mortgage rates” up to 30% have been asked, making it impossible to finance property. In Europe, house loans come with approximately 2-3% interest rates at the moment.
The new TCB scheme is payable back within 20 years. For a loan of US$100,000 over a ten year period, monthly payments of US$1,321 would occur, according to the present scheme.
In general, foreigners are eligible to finance properties located within designated special economic zones, such as Fumba Town. The bank loan can also be used for renovating and building. CPS CEO Sebastian Dietzold hailed the offer as a “most important milestone”.
Repayments can be made monthly or quarterly, with loan terms of up to 20 years, providing buyers with flexibility to plan their finances.
For more Information, contact:
- Elisante Marir, TCB Bank, Mortgage Finance
- Phone Number: +255 715 353 873
- Email: ELISANTE.MARIR@tcbbank.co.tz
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