dfcu Bank launches home loan with financing of up to 85% of property value
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dfcu Bank has introduced a home loan priced at 16.9% a year that funds up to 85% of a property's open market value, with repayment periods of up to 20 years, a 60-day repayment holiday and financing of insurance premiums.
dfcu Bank has introduced a new home loan offer at an annual interest rate of 16.9%, targeting Ugandans who want to buy, build, renovate or refinance residential property.
The facility offers financing of up to 85% of a property's open market value for completed homes, repayment periods extending to 20 years, a 60-day repayment holiday before scheduled repayments begin and financing of insurance premiums so customers can spread the cost. The bank says it will confirm qualifying home loan applications within 48 hours, subject to terms and conditions.
Customers undertaking home construction are required to contribute at least 30% of the construction cost. The facility covers purchases of completed homes and land, construction, structural renovations, rental property developments, mortgage refinancing and equity release, and is open to qualifying salaried employees, self-employed individuals, Ugandans living abroad with verifiable income and expatriates working in Uganda with valid work permits.
Investors developing rental property can obtain financing for projects of up to eight residential rental units on a single land title, while refinancing lets existing homeowners transfer loans from other financial institutions to dfcu and equity release lets eligible borrowers borrow against property they already own.
Sebastian Murokozi, dfcu Bank's manager for home loans, said the offer was designed to help customers manage costs beyond the purchase price. "Buying a home is not simply a question of whether a customer qualifies for a particular loan amount. There is the customer's own contribution, the costs associated with completing the transaction and the monthly repayment that will sit alongside other financial obligations for a number of years," he said.
The bank has also partnered with property developers and real estate companies, including Build Net, HK Properties, Universal Multipurpose, Knightsbridge Avenue, Fakhruddin Properties, Royal Palms, Aesthetics, Comfort Homes and Pearl Marina, to give customers access to residential property options and selected concessions on transaction costs.