Subscribers to local banks in Rwanda will have access to loans that will enable them acquire affordable houses with the ultimate aim of fixing the existing gaps.
A partnership between government of Rwanda and the World Bank has seen an injection of U$150million to deliver long-term housing financing at affordable interest rates.
This initiative has been dubbed the Rwanda Housing Financing Project (RHFP) and will be managed by Development Bank of Rwanda (BRD).
The fund is readily available to support first time home owners to acquire financing through participating financial institutions (PFI).
PFIs will acquire a financing facility at 6% and lend to borrowers at maximum 11% for a 20 year tenure.
According to BRD, mortgage applicants are required to be first time home owners, must be citizens of Rwanda and should have a monthly income of Rwf700,000 or borrower to purchase a house not exceeding Rwf35million.
Several housing developers in the affordable housing program have also been engaged to increase the supply of affordable homes.
The project aims at supporting the demand side and ultimately address the housing deficit in Rwanda.
Rwanda’s National Strategy for Transformation 2017-2024 (NST 1) targets to increasing urbanization to 35% by 2024.
.Next steps – borrowers are requested to approach BRD and @Rwanda_Housing for registration. Thereafter;
•BRD & RHA shares the lists of registered first home owners to PFIs
•PFIs call the prospective buyers to fulfill mortgage requirements and acquire the loan#RwOT #Rwanda pic.twitter.com/jhoXus3F6m
— Development Bank of Rwanda, PLC. (@BRDbank) November 20, 2019