Homes are often a representation of something larger than a physical structure; they are a monumental step forward in life. A home symbolizes security, stability, and success.
Understandably, these feelings are attached to home ownership, as shelter is a basic human need providing security and safety. Now home loans have become an increasingly accessible avenue into home ownership.
Hopeful homeowners are now only required to have an equity payment of 20 per cent. Once the equity payment is available the bank will financed up to 80 per cent of the value of the property.
Securing the finances for a home is the first step, next is the monthly payments, which should not exceed 40 per cent of the monthly income. It is advisable to exercise caution and avoid loans that will make it difficult to meet the obligations of monthly payments.
Additionally, in order to secure a home loan, a title deed will be required. It is an important document that legitimizes land ownership and gives the bank assurance of assets.
Other documents to support the application process include identification and existing loan history. Home loans are not restricted to outright purchases but also apply to building and home renovations.
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By Stanbic Bank Tanzania
