Housing experts to grade banks
Sep 24, 2009
THE Uganda Property Developers Association has launched an initiative to recognise banking institutions that support their clients’ efforts to acquire houses.
By Ricks Kayizzi
THE Uganda Property Developers Association has launched an initiative to recognise banking institutions that support their clients’ efforts to acquire houses.
“Our aim is to forge a combined effort in promoting the housing sector by recognising banks’ efficacy in providing home loans and mortgage finance,†Anatoli Kamugisha, the association president, has said.
He said they intend to highlight the need for housing finance and educate the public on credit facilities available.
“The growth of the housing sector has been slow due to the “mortgage phobia†by the public,†he added.
The housing sector is reportedly experiencing a shortfall, a situation worsened by public perception that mortgages are risky and lead to insolvency.
Further dissuading the public from obtaining mortgages and housing finance, Kamugisha added, are bank ineffficiencies in the provision of mortgages as shown by recent research.
“Some banking institutions have curtailed their mortgage finance portfolios and in some cases rejected applications from clients, in fear of their inability to repay due to perceived job loss and financial distress,†he added.
Such housing bottlenecks will be tackled come next month at a housing and development conference and bank award to be presided over by the state minister in charge of urban planning,Urban Tibamanya.
The meeting will bring together real estate dealers, banks, construction engineers, surveyors, architects, government officials and the public.
Banks that are currently offering mortgage and home construction loans facilities include Stanbic Bank, dfcu, Housing Finance Bank, Barclays Bank and Equity Bank.
THE Uganda Property Developers Association has launched an initiative to recognise banking institutions that support their clients’ efforts to acquire houses.
“Our aim is to forge a combined effort in promoting the housing sector by recognising banks’ efficacy in providing home loans and mortgage finance,†Anatoli Kamugisha, the association president, has said.
He said they intend to highlight the need for housing finance and educate the public on credit facilities available.
“The growth of the housing sector has been slow due to the “mortgage phobia†by the public,†he added.
The housing sector is reportedly experiencing a shortfall, a situation worsened by public perception that mortgages are risky and lead to insolvency.
Further dissuading the public from obtaining mortgages and housing finance, Kamugisha added, are bank ineffficiencies in the provision of mortgages as shown by recent research.
“Some banking institutions have curtailed their mortgage finance portfolios and in some cases rejected applications from clients, in fear of their inability to repay due to perceived job loss and financial distress,†he added.
Such housing bottlenecks will be tackled come next month at a housing and development conference and bank award to be presided over by the state minister in charge of urban planning,Urban Tibamanya.
The meeting will bring together real estate dealers, banks, construction engineers, surveyors, architects, government officials and the public.
Banks that are currently offering mortgage and home construction loans facilities include Stanbic Bank, dfcu, Housing Finance Bank, Barclays Bank and Equity Bank.