1.Who is a diaspora?
Is a Ugandan citizen who resides or works in another country.
2.Who is a Non-Resident?
Is one who has gone out of Uganda or who stays outside Uganda for purposes of employment, Or who has gone out of Uganda for purposes of Business or Vacation or Education, Or who has gone out of Uganda or who stays out of Uganda for any other purpose indicating his intention to stay outside Uganda for uncertain period.
3.What’s the maximum loan amount I can access?
The bank will take 70% of the property value that you are buying or constructing. We also do 100% financing for first time home owners or customers that earn below 15m or an equivalent.
4.What’s the maximum loan deductions that can be made from my salary?
The bank makes a maximum monthly deduction of 35% of your monthly gross salary. This includes any other obligations that you have at the time of application.
5.What’s the maximum pay back loan period?
20 years for Home loans
10 years for Commercial Mortgages.
6.Is one allowed to make early payments / retire their loan much earlier?
Yes. The minimum payment is 10% of the outstanding principal balance. This can be done at any one time or the whole loan can be retired earlier than the stated loan.
7.Nature of securities acceptable to the bank:
Properties with land titles only. The land shouldn’t have squatters or graveyards, family land and communal land.
8.What are the requirements that I need to submit to the bank to start the process:
- Completed loan application form.
- Copy of your current contract.
- Letter of recommendation from the respective authorities from NSSF.
- Personal Bank statement for the last 12 months.
- Loan statement and Copy of Loan Offer(in case of existing loans)
- 2 Pay Slips for the last two months.
- Valid Identification.
- Five (5) Passport Photos.
- Copy of Land Title.
- Copy of the approved Plan.
- Spousal Consent (4 Copies), Copy of Marriage certificate, 2 Photos and ID for spouse if Married.
- Statutory declaration ( Formats provided by the bank)
- Four (4) photographs of at least four elevations of the property.
- CRB enrollment report / Copy of CRB financial Card.
- Tax Identification Number.
- Have an operational account with HFB.
- Sale agreement/Letter of offer
- Bills of Quantities for outstanding construction work.
9.What are the fees I need to pay on submitting my application:
You will incur the following fees upon submission of your application. Application fees, valuation & survey fees and CRB fees. See the current tariff guide on our website for details.
10.What are the fees payable after my loan has been approved:
You will incur the following fees upon approval of your application. Stamp duties, Security perfection fees and Arrangement fees. See the current tariff guide on our website for details.
11.Can the fees be deducted from the Loan:
Where the value of the property is significant you may.
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.Can I take my Maximum Mortgage Loan entitlement, Purchase a cheaper House and use the balance for other needs?
No. The loan being taken should only be for purposes of constructing, purchasing home or refinancing existing loans where applicable.
14.If am applying for a home construction mortgage, does the bank credit the whole amount on my account?
The loan amount is disbursed in installments, a minimum of four. Before the bank advances the next installment, re-inspection and revaluation is done to ascertain full utilization of the previous installment.
15.Is there a grace period before I begin paying?
For construction cases, one is given a period a grace period of 8 months upon request. 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 after the final phase of funds is disbursed.
16.What happens if I have another loan with another bank or a loan with Housing Finance Bank?
You may either keep it running, pay it off using your own funds or the bank refinances it subject to the property values, provided the total deductions don’t exceed 35% of your gross and the security values are adequate. The existing loan affects the mortgage loan amount one can access from the bank because it affects the monthly installments. The maximum total deductions for all the loans that you have when you access the mortgage including the mortgage deduction shouldn’t exceed 35% of your gross monthly salary. The bank either pays off the loan for one to get their maximum mortgage entitlement or the loan remains running which reduces on the mortgage loan amount one can access.
17.What if I already have an existing mortgage with HFB at a higher rate, can I be allowed to convert the facility to the current terms?
Yes, it’s possible.
18.If I have a mortgage with another bank, can Housing Finance Bank pay it off?
Yes, you will be required to submit an application plus the other requirements as you will be advised by the respective bank official.
19.If my gross salary isn’t sufficient to enable me qualify for the amount I need, can the bank consider my spouses income or income from other businesses or rental income?
Yes, we consider all incomes that a customer provides.
20.Where do I find the property to buy?
One can locate the property on their own or use authorized property agents. Housing Finance has a working relationship with some real estate companies like Nations Housing and Construction Company, Comfort Homes Limited, Farkhruddin Properties, Buildnet, Sema Properties, Pearl Estates, Royal Palm, Canaansites, Universal Multipurpose Construction Company, Mirembe Villas, Greentop Villas, Serena Heights and many more. Contacts of these can always be availed on request.
21.How do I begin the application process in case I already have land and I need to construct?
You need to ensure that you already have an approved building plan for the proposed structure. If you already have the plan, you then need to engage your engineer to come up with Bills of Quantities for the outstanding construction works. These bills of quantities will form a basis of the proposed loan. The bills of quantities should tally with the loan amount that you qualify for.
Once you have the above in place, kindly fill an application form, attach the requirements and submit your request to the bank for processing.
22.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 has been done, you will then be required to submit the requirements to the bank.
23.What happens in the event of my death?
The administrator takes over the mortgage facility.
24.Do I have to notarize the documents before I send them through to the bank?
You will only Nortize a document where your signature appears.Payslips/stbs, bank statements and letter from your employer are not meant to be notarized.