Buying a home is the largest purchase you’re likely to make. Before you arrange your mortgage, make sure you know what you can afford to borrow. Find out where to get a mortgage, the different types and how the process works.
How does a mortgage work?
The money you borrow is called the capital and the lender then charges you interest on it till it is repaid. The type of mortgage you are able to apply for will depend on whether you want to repay interest only or interest and capital.
With repayment mortgages you pay the interest and part of the capital off every month. At the end of the term, typically 25 years, you should manage to have paid it all off and own your home.
With interest-only mortgages, you pay only the interest on the loan and nothing off the capital (the amount you borrowed).
You will have to have a separate plan for how you will repay the original loan at the end of the mortgage term.
Combination of repayment and interest-only mortgages
You can ask your lender if you can combine both options, splitting your mortgage loan between a repayment and interest-only mortgage.
How to get financing
-Get letter of offer signed by both parties
-Obtain letter of offer from developer and pay of 20% of purchase price
-On payment, the advocate will issue you with a sale agreement
-Take the sale agreement and 20% payment receipt to any of our mortgage partners including:
KCB Bank, Barclays Bank, I & M Bank, Standard Chartered Bank, Chase Bank and Co-Operative Bank.