Commercial banks are now loading up to an extra 20 percent cost on mortgages in multiple charges before they levy interest, pushing repayment to three times the borrowing, locking out more Kenyans from the average Sh9.2 million home loan.
Banks’ data shows interest rates for a Sh9.2 million mortgage is priced between 11.5 percent and 18.18 percent, with customers expected to pay almost three times the actual loan at a maturity period of 12 years, partly driven by other charges such as appraisal fees, insurance, ledger fees, legal fees, stamp duty and valuation fees.
