Top 5 questions you should ask your mortgage partner

Complete the sentence: Home is where… where the heart is

Some will say where you can demolish the ugali that’s your ideal size without fear of judgment (not those ‘samples’ they sell in restaurants). Ladies will say where you can throw away that garment that suffocates the bosom without a care in the world.

Well, whatever you call home, it needs to be as homely as possible.

It is everyone’s dream to own a home and getting a mortgage is a great path towards achieving that. And while there are a couple of products out there, the Absa home loan brings possibilities to life while giving our customers competitive mortgage rates. We will get to that shortly.

So, are you at home with your mortgage provider? Is the provider keen to facilitate your enjoyment of the home?

There are five questions you should ask the provider to know if it will be a homely ride to ownership.

1. Do they offer financial guidance?

A mortgage is a long-term commitment and so you need to ensure all boxes are ticked and your worries are attended to.

So, your mortgage provider needs to address your concerns and address them well. At Absa, there is a dedicated mortgage team that offers expert advice on anything and everything a customer wants to know about.

And even before you get to talk to them, you can do your calculations on the monthly repayments and whatnot on their website. So, you have a pretty clear picture even before you can reach out to them.

2. What’s the interest rate?

This is where the rubber meets the road in matters mortgage. An interest rate that is too high will bog you down for years. Ask your provider about the rate.

The Absa mortgage loan comes with a reduced interest rate of 11.9 per cent per annum. It only gets better because the loan repayment period has been extended to a tenor of 25 years. For example, if you take a Sh3 million mortgage from Absa for 25 years, your monthly repayment will be Sh31,375. This is one of the best deals you can get in the market.

3. By how much will they finance the property you’re eyeing?

Institutions have different policies on the percentage they can finance.

Picture this: You have identified a house you want to buy, you have done the background checks and all is well, and now what stands between you and ownership is payment. Let’s say the house goes for Sh4.5 million. Absa will give you up to 90 per cent of the amount. That means that you can get a mortgage of up to Sh4.05 million from Absa to finance the purchase.

4.  To what extent do they support you in your purchase plan?

Of what use is a financial institution if they can’t tell you promptly on whether they can finance your property or not? Ask your provider about timelines. Ask about all the fees due. Absa has made strides in this score by offering negotiated costs on legal and valuation fees.

Absa has a dedicated team of home loan specialists who will take you through the process from start to finish. The bank also guides the customer to obtain the necessary requirements to progress the mortgage application. At Absa, the response is within 48hours of making an application.

5. How do they factor the insurance component?

Given the duration mortgages take, it is necessary to tie them with insurance products. A pointer to a good mortgage partner is how well they sync with the insurance products in the market.

To ensure more certainty in homeownership, Absa has offers on products that offer comprehensive domestic insurance. This is a great accessory towards living stress-free.

In case you need more information about Absa, please call +254722130120 or WhatsApp Abby on +254710130000. Or visit this site.