HOME OWNERSHIP AND COMMERCIAL/INVESTMENT MORTGAGE SOLUTIONS.

FREQUENTLY ASKED QUESTIONS

1. What home loan products are available at Housing Finance Bank?

Purchase or completion of single residential unit / refinance of residential property mortgage

If you want to purchase/complete your dream residential property, we can help you access up to 80% of
the funds required to enable you realize this. This facility has a long repayment period of up to 20 years at
affordable interest rates. Monthly repayment - Up to 35% of gross income / 80% of proposed net rent

Equity Release
Take advantage of the financial value in your property to finance personal needs. Through the Housing
Finance Bank Equity Release loan, we offer you up to 300million shillings depending on the property value
and its payable in a comfortable period of up to 10 years.

Growing House Loan

We understand that sometimes home construction can stall due to lack of funds. So why not come and
talk to us? We offer funds to enable incremental construction of a residential home. This loan is available
to you if you have reached the foundation level of construction and the maximum repayment period is 10
years.

Land Purchase Loan

Are you looking for funds to purchase the desired land? The land purchase loan is the ideal solution. With
this loan, you can access up to 60% of the open market value of the land payable in 5 years to buy any
type of land be it lease, mailo or freehold land. This loan is available for land located within 30km of
Kampala and 5km within municipalities

Kyaapa Loan
This loan is extended to sitting tenants on untitled land such as Kabaka’s land and district land in areas like
Mbarara, Mbale, Tororo, Gulu, Arua etc

2. What Mortgage Investment solutions are available?

Multi-unit purchase/Completion Mortgage

This loan enables you to purchase or construct 2 or more residential units to let. The loan amount is up to
80% of the property value and is payable in a maximum period of 20 years.

Commercial Mortgage
You may desire to purchase / complete / expand a commercial project e.g. shops, a hostel, a warehouse, a
guest house, a school, office premises etc and this type of facility will facilitate you to do so. It’s available for
up to 10 years with a 50% contribution from you.
3. Why take a mortgage from us?
Some of the benefits of our mortgage include:
 The extended repayment period of up to 20 years offers you an affordable monthly repayment
 You are able to access high loan amounts of up to 80% of your property value Loan Competitive
interest rates assure you of the best deals available in the market at any point in time
 Flexibility in loan repayments with an option of partial / early settlement which reduce your overall
interest costs

4.What’s the maximum loan deductions that can be made from my salary/income?
The bank makes a maximum monthly deduction of 35% of your monthly gross salary. This includes any
other obligations (within and outside Uganda) that you have at the time of application.

5. What’s the maximum pay back loan period?

Period is dependent on the product/solution you have applied for as indicated above. However, the
maximum period is 20 years.

6. Is one allowed to make early payments / retire their loan much earlier?
Yes. The minimum payment is 10% of the outstanding principal balance. There is a nominal charge
applicable and it changes from time to time. Please inquire from the relationship manager at the time of
inquiry for the prevailing charges.

The outstanding balance will be spread out over the remaining period of the loan resulting into a lower
monthly installment.

7. Nature of securities acceptable to the bank:

The bank considers as security only those properties that have valid land titles. However in the case of the
Kyaapa loan, the bank will consider an undertaking from the lessor of the land as sufficient to process funds
needed to acquire the title.

Please note that the proposed security should be free of encroachments and encumbrances like squatters
or graveyards.

8. What are the requirements that I need to submit to the bank to start the process:

General Requirements:
 Completed loan application form
 Copy of your current employment contract (for the employed)
 Letter of recommendation from the respective employer (for salaried customers).
 Personal Bank statement for the last 12 Months.
 2 Pay Slips for the last two Months.
 Copy of your valid passport.
 Five (5) Passport Photos.
  Copy of valid Land Title.
 Copy of the approved building plan.
 Spousal Consent (4 Copies), Copy of Marriage certificate, 2 Photos and ID for spouse if Married.
 Four (4) photographs of at least four elevations of the property.
 Copy of CRB financial Card.
 Have an operational account with HFB.
 Statutory declaration as to marital status / use of property / difference in names (where applicable)

Additional Requirements for Purchase cases:

 Sale agreement/Letter of offer for sale
 Vendor’s Identification and two Passport Photographs.
 Vendor’s spousal consent (4 Copies), 2 Photos and ID.
 Telephone and email contacts of vendor.

Additional Requirements for Construction cases:

 Bills of Quantities for outstanding construction work.

Please note that other requirements may apply depending on your unique circumstances

9. What are the fees I need to pay on submitting my application:

Loan application fees Application fees - 0.25% of loan (non refundable) min. Ugx 200,000/=
Valuation fees  400,000 for properties whose values don’t exceed Ugx 500 Million.
 Ugx 800,000 for properties whose values range between Ugx 500
Million and 1 Billion.
 0.1% of the property values for values above Ugx 1 Billion
Survey Fees 200,000/=
Credit reference 25,000
Bureau fees
These fees are nonrefundable.

10.What are the fees payable after my loan has been approved:

Description Purchase / Equity release Construction Mortgage

Mortgage
Loan Facility fees 1.25% of the approved loan 1.5% of the approved loan
amount. amount.
Stamp duty on property 1.5% of the property open market Nil
transfer value.
Transfer fees 35,000 Nil
Stamp duty on mortgage 0.5% of the approved loan amount. 0.5% of the approved loan
registration amount.
 Mortgage registration fees 35,000 35,000
Stamp duty of 20,000 20,000
Documentation
Valuation ancillary to 100,000 100,000
mortgage deeds
Legal fees Loan amount of 10M and below = Loan amount of 10M and
300,000 below = 150,000
11M – 49 M =600,000 11M – 49 M =300,000
50 M - 99 M = 800,000 50 M - 99 M = 500,000
100 M – 299 M = 1.2 M 100 M – 299 M = 600,000
300 M – 999 M = 1.5 M 300 M – 999 M = 1 M

Property insurance fees 0.15% of the property insurance 0.15% of the property
value (Paid annually every January) insurance value (Paid
annually every January)
Optional Optional
Mortgage Protection/ Life
Insurance

11.Can the fees be deducted from the Loan:

No.

12. How do I Make my Contribution:

You can choose to deposit it on your account or pay the vendor /seller and provide proof of payment for
purchase cases or invest it in construction for construction cases.

13.If am applying for a construction mortgage, does the Bank credit the whole amount on my
account?
The loan amount is disbursed in installments, depending on the level of construction. The number of
phases is agreed between you and the bank once the loan has been approved. Before the Bank advances
any subsequent installment, re-inspection by the bank valuers is done to ascertain full utilization of the
funds disbursed so far

14. Is there a grace period before I begin paying?

For construction cases, one is given a period a grace period of 8 months. However during the 8 months,
only interest on the disbursed loan amount is paid at the end of every month. Payment of interest and
principal begins in the ninth month or immediately upon your request.

15. If I have a mortgage with another Bank, can Housing Finance Bank pay it off?
Yes. However this is applicable to facilities where repayments have been made on time
16.If my gross salary isn’t sufficient to enable me qualify for the amount I need, can the Bank consider
my spouse’s income or income from other businesses or rental income?
Yes, your spouses’ income, rental income and other business incomes can only be considered provided you
can provide supporting documentation for them.

17. Where do I find the property to buy?

One can locate the property on their own or use property agents. In addition, Housing Finance bank has a
working relationship with some real estate developers and land sellers like National Housing and
Construction Company, Pearl Estates, Royal Palm, Canaansites, Universal Multipurpose Construction
Company, Mirembe Villas, Greentop Villas and many more who have units / land available for sale from
time to time. Please visit our website for their contact details.

18. How do I begin the application process in case I have identified a house I need to purchase?
You will be required to negotiate a price with the seller, get a copy of title, photos of the property and have
the initial discussion with a Bank official for the initial screening to ascertain that you will be able to qualify
before you commit any funds to the vendor. Once this is done, you will then be required to submit the
detailed requirements to the Bank.

19. How do I process the mortgage application, submit loan documents and sign the mortgage deeds
when I am away in the diaspora?
There are 2 options for customers who already hold accounts in Housing Finance Bank depending on
customer's convenience.
Option 1.
 The customer can come to Uganda to the Bank physically to fill mortgage application forms and
submit supporting documentation.
 After submitting the supporting documentation, then appoint an attorney for purposes of signing
the loan/mortgage documentation on your behalf.
 The authority of the attorney will normally include transacting on the account for purposes of
paying vendors (in purchase cases), purchase of materials and managing constructions (in
construction) cases. The power of attorney executed would determine the extent of authority
depending on the circumstances of each case.
 Where such instructions are given, the customer does not need to visit the Bank and funds will be
disbursed upon execution of documents by the attorney and completion of other related
processes.
Option 2.
 Customers who have accounts with the Bank can also fill loan/mortgage application forms from
abroad and then courier these to the Bank along with supporting documents.
 In this case, the application forms would have to be witnessed by a Notary Public. At this point
customers may again appoint attorneys and the instrument of appointment would still have to be
witnessed by a Notary Public.
 If no attorney was appointed, the customer will need to come physically to the Bank to sign the
loan /mortgage documents upon approval of the facility. Note that where an attorney for this
purpose was appointed, the customer may not need to visit the Bank in person.
  The funds will be drawn down upon execution of loan/mortgage documents by the customer or
their attorney and completion of other related processes.

20. What happens to my title once I have paid off the loan but am out of the country?

Once you have fully paid off your loan the Bank will release to you the copy of the title submitted to the
Bank together with a release of mortgage document. The Bank may not release the above documents to
third parties except where your authorization was given physically at any of our offices at an earlier date

Contact details

General Office Line: +256 414 259 651/2

Direct desk line/Relationship Manager: +256 417 707 580
WhatsApp: +256 790 542 262
Email: [email protected]
Website: www.housingfinance.co.ug